SABC in crisis as coffers run empty

The SABC has confirmed it is facing a financial crisis, forcing it to fund its operations from dwindling reserves.

“Its major sources of revenue are advertising and sponsorships (85%) and television licences (12%)‚ and these revenue streams are under pressure, with the SABC now funding its activities from its reserves‚” spokesman Kaizer Kganyago said yesterday.

The SABC’s treasurer had warned its management that the company would soon run out of cash unless new funding was raised.

A confidential Treasury risk committee report up to January 31 this year indicated that cash reserves plunged to R174-million in December – down from more than R1-billion in 2015.

Kganyago said the utterances at the parliamentary inquiry into the SABC’s affairs negatively portrayed the corporation‚ and that had had an adverse effect on revenue generation‚ with fewer people paying television licences.

There was a drop in advertising spend and the withdrawal of partners.

Kganyago said the contribution from the government, 2%, to the SABC was miniscule compared to the cost.

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