STATEMENT IN RESPONSE TO THE ANC SG ON THE SABC COST CUTTING DRIVE AND RETRENCHMENTS

Johannesburg- Saturday, 16 September 2018- The SABC Board notes with concern the recent reported statements by the Secretary General of the African National Congress (ANC), Mr Ace Magashule, where he indicated that the ANC had made a decision not to "allow" the section 189 process currently underway at the SABC.

This reported statement has caused some confusion amongst our employees and other stakeholders.

In this context, the SABC believes it is necessary to confirm that the Board has the exclusive power in terms of section 13(11) of the Broadcasting Act, 1999 to "control the affairs of the Corporation". This includes how the SABC operates the business of the public broadcaster and conducts labour relations with its employees.

No person, organisation or entity is permitted to interfere with how the SABC Board exercises its power in terms of section 13(11) of the Broadcasting Act. Any interference would be in contravention of the law and a recent court judgement to this effect.

The SABC Board has inherited an organisation in a financial crisis as a result of many years of failures in governance, maladministration and poor decision-making. The SABC currently has a R1.3 billion debt and an annual salary bill of R3,1 billion.

This is clearly not sustainable for an organisation that generates R7,2 billion in revenue and had financial losses of over R622 million in past financial year. Being a responsible Board, we cannot sit by and not act. This would be irresponsible and reckless on our part. The Board of the SABC assures all its employees and stakeholders that we will continue to uphold our fiduciary duty to act in the best interests of the Corporation.

Statement issued by Neo Momodu, GE: Corporate Affairs & Marketing/Spokesperson, SABC, 15 September 2018