Muthambi: SABC has a ‘positive cash balance’

26 August 2016

Pretoria - Communications Minister Faith Muthambi has played down concerns of possible financial losses at the SABC.

Earlier this year, the Sunday Times reported that an internal SABC document revealed that the broadcaster was expected to post a final loss of R500m in September 2016.

The Sunday Times reported that this loss is expected despite SABC COO Hlaudi Motsoeneng’s claims that the broadcaster is in a healthy financial position.

But Muthambi - speaking to Fin24 on the sidelines of a Print Media Transformation Colloquium in Tshwane on Thursday - echoed Motsoeneng’s claims.

"I want to tell you I attended their [the SABC's] AGM a week ago. Their annual general meeting where they were presenting their financials,” Muthambi told Fin24.

"They're a going concern. Their liquidity it is OK, and we will be presenting the financial statements in Parliament in September.

"But what is exciting is that they've got a positive cash balance,” Muthambi said.

The SABC finances have struggled in recent times as the broadcaster posted a loss of R395m for the 2014-15 financial year.

Meanwhile, the SABC was last profitable in 2013-14 when it made R358m.

Local is 'lekker'?

Speaking about the SABC’s financial results statement in September, Muthambi further praised Motsoeneng's policy to introduce over 80% local content on radio and TV broadcasts this year.

“It's about universal access. That content now, they are targeting provinces. Provinces are also able to work on it,” Muthambi told Fin24.

Experts, though, have questioned whether the broadcaster rushed into its local content policy and now risks losing advertisers.

Communications regulator Icasa also only expects holders of radio public sound-broadcasting service licences to play at least 60% South African music.

This article first appeared on Fin24, see here.