The struggling SABC has been given 20 days to respond to the Companies and Intellectual Property Commission (CIPC) to explain why it believes it is not trading recklessly under insolvent circumstances.
City Press reported that the public broadcaster’s liabilities exceed its assets by R1.8billion, according to the notice which was served last Thursday, and “as a result, the SABC is not able to settle its short-term obligations”.
The paper added that only half of the television production houses who do work with the broadcaster were paid for December.
The organisation had to write to the City of Johannesburg pleading that their lights be switched on. It requires R600m a month to operate but is only generating about R380m in income.
Board members resignations
Earlier this month, the resignation of four members of the SABC board caused some confusion about where it leaves the public broadcaster.