SABC 2017/18 annual report reveals top management still earned highly inflated salaries and a public broadcaster technically insolvent

Issued by Phumzile Van Damme MP – DA Shadow Minister of Communications
04 Oct 2018 in News

Please find attached a soundbite in English by DA Shadow Minister of Communications, Phumzile Van Damme MP.

The South African Broadcasting Corporation’s (SABC) 2017/18 annual report tabled in Parliament, without the usual press conference and announcement from the public broadcaster, reveals that for the year ending in March 2018, the SABC’s top management still earned highly inflated salaries.

The report also reveals a public broadcaster that is commercially insolvent and received a disclaimed audit opinion from the Auditor-General.

The A-G found that the SABC only achieved 40% of its targets and:

  • Irregular expenditure balance: R5 billion, incurred in 2017/18: R571 million
  • Fruitless and wasteful balance: R230 million, incurred in 2017/18: R84 million
  • Financial loss for the year: R622 million
  • Cash flow for the year: -R1.2 billion

Top management for the year ending 31 March 2018, earned exactly the same inflated salaries of the Hlaudi Motsoeneng era with the basic salaries of the GCEO being R6.5 million, the CFO R4.1 million and the COO, R2.7 million. Group Executives salaries range from R3.8 million (GE: Head of Television), to R3.5 million (GE: Risk and Governance).

In a statement earlier this week, the SABC indicated that “we would like to place on record that the salaries of the recently appointed executive board members and executive management have been significantly reduced...” and refused to reveal the amount of the reduced salaries.

This would mean GCEO and CFO hired in June 2018, may have received reduced salaries, and the COO, Chris Maroleng appointed January 2018, earned the same salary as Hlaudi Motsoeneng.

It is utterly baffling why the SABC will not reveal the reduced salaries of its top management. Reduced salaries should be a source of pride and a way to build confidence that the era of SABC management feeding at the trough has come to an end.

The DA will not let the matter rest.

We have started a “Struggling SABC Monitor” which will run until the SABC reveals the amount that its top honchos earn. As the public broadcaster, this is not confidential information and should be released publicly.

We are committed to ending the days of the SABC being a piggy bank to fill the pockets of the SABC’s management. The secrecy around the salaries only serves to create fears that the feeding at the trough continues. We implore the SABC to put our, and the public’s fears to rest.