Muthambi must confirm R18 million golden handshake to suspended SABC CEO

13 July 2016

The DA will write to Communications Minister, Faith Muthambi, requesting that she confirm whether suspended SABC CEO, Frans Matlala, will be awarded an R18 million golden handshake funded for by the ordinary taxpayer.

According to media reports, the SABC agreed to settle for an alleged amount of R18 million a day before Matlala was due to appear before a disciplinary committee after he was suspended in November last year, a mere four months into his five-year contract.

If it is true that a settlement has been reached, it is clear that the SABC board did not have good enough reason to suspend Matlala. This is further evidenced by the absence of any explanation by Minister Muthambi as to why Matlala was suspended in the first place. 

Given that the SABC may have not have had good enough reason to suspended Matlala, the expenditure on the settlement could amount to wasteful and fruitless expenditure. In terms of Section 83 of the Public Finance Management Act (PFMA) which stipulates that wasteful expenditure constitutes financial misconduct and is grounds for the suspension or dismissal of the SABC’s accounting authority which in this case is the SABC board. 

Section 83 of the PFMA states that that if accounting authority (the SABC board) of a public entity commits an act of financial misconduct if that accounting authority wilfully or neglectfully makes or permits irregular expenditure or fruitless and wasteful expenditure, every member is individually liable for any financial misconduct of the accounting authority. Financial misconduct constitutes grounds for dismissal or suspension.

The DA looks forward to Minister Muthambi’s urgent feedback in this serious matter. 

Issued by Phumzile Van Damme, DA Shadow Minister of Communications, 13 July 2016