SABC technically insolvent, subjected to 'systemic collapse' - CEO

SABC CEO Madoda Mxakwe has told the state capture commission that for many years the public broadcaster was subjected to a systematic collapse of governance and financial processes.

Mxakwe said there had been a disregard for SABC policies and processes, adding the organisation was "technically insolvent". 

"We look at the short-term liabilities that exceed our current liquid assets, simply put, we cannot and we are unable as the SABC to pay our creditors. To date, we are standing at R1.8bn ... we have not been able to pay SanTech, we have not been able to pay MultiChoice and some of our other creditors," he told commission head Deputy Chief Justice Raymond Zondo on Tuesday afternoon. 

"We run an organisation, chairperson, where every single month employees are very depressed [and] they do not know whether they will be able to get their salaries or not. 

"The only thing we focus on every month is the R265m that is dedicated to paying salaries. Once we have done that, we actually have absolutely nothing left and then we have to get into engagements with some of our creditors." 

Mxakwe said when he took the job, his understanding was there was a capital re-injection that was expected. He also believed the only reason the SABC had been able to stay afloat was because of the dedication of its staff.

Zondo said it was worrying that it was not only the SABC going through difficult times.

"We all know it is not just the SABC, there are issues with SAA, Eskom [and] Denel.

"There have been, over the years, ministers responsible for these entities and there have been boards and CEOs and CFOs. How did all of this happen when there were all these people?

"How did we get into a position where state-owned entities have got to this level? It is very worrying," Justice Zondo said.

Mxakwe told the commission the board had "inherited a mess", adding what gave him comfort was the fact that the organisation had ethical leadership that had a passion to serve the country. 

"If we were to get that funding then we would be able to manage. But the question to ask is if we are the right people politically?" 

The SABC had requested R3.2bn from the National Treasury, Fin24 previously reported. 

ZAR/USD
17.58
(+0.30)
ZAR/GBP
23.02
(+0.17)
ZAR/EUR
20.77
(+0.20)
ZAR/AUD
12.61
(+0.22)
ZAR/JPY
0.17
(+0.20)
Gold
2028.90
(+0.09)
Silver
28.05
(-0.31)
Platinum
974.00
(+1.14)
Brent Crude
44.49
(0.00)
Palladium
2164.00
(-0.62)
All Share
56757.73
(-1.56)
Top 40
52435.65
(-1.72)
Financial 15
9897.96
(+0.10)
Industrial 25
74671.49
(-1.98)
Resource 10
58948.78
(-1.89)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 937 votes
It depends on how the funds are used.
74% - 6261 votes
No. We should have gotten the loan elsewhere.
15% - 1286 votes
Vote