Explosive recommendations from the SABC inquiry report

The committee has adopted its final report. Speaker Baleka Mbete will now send it to all affected parties to consider action.

The committee found the minister to be incompetent in carrying out her duties and that she interfered in some of the Board's decision making and processes.

They also recommend appropriate steps against any current or former employees and board members who are found to have been complicit in the wasteful expenditure at the SABC. 

These include irregular contracts and performance bonuses. 

What the report contains - from the alarming to the explosive:

- Former Head of News and Group CEO Jimi Matthews initially declined to participate in proceedings. He could not be accommodated when he later indicated his willingness to give oral evidence.

- The committee requested a slew of documentation from the SABC in preparation for the inquiry. The SABC however did not provide the documentation by the requested date. 

- Eventually, the SABC submitted more than 500 electronic documents. 

- Witnesses suggested Communications Minister Faith Muthambi at times interfered in the work of the board. This was most notable in the circumstances surrounding the appointment of Hlaudi Motsoeneng as COO soon after Muthambi took office in 2014. 

- Evidence from witnesses including the Minister revealed that in many instances the Broadcasting Act was disregarded as the principal act governing the affairs of the public broadcaster

- Evidence by former board members suggested the Minister was at the centre of the appointment and removal of Board members. 

- Irregular expenditure to the tune of millions are tabled in the report for 2014, 2015 and 2016

- The ad hoc committee found that the SABC board has for some time prior to its collapse, failed to - discharge its fiduciary duties, adhere to the charter and carry out other duties

What is recommended:

- The board must be formally dissolved and an immediate Interim Board appointed

- Parliament should consider amending the Broadcasting Act and if necessary, the Companies Act to create legal certainty

- The National Assembly should soon after the appointment of the Interim Board, commence with the process to appoint a new SABC board. That process should be transparent. All candidates should be subjected to vetting by the State Security Agency. 

- The Interim Board, or if necessary the new Board, urgently engage the Auditor-General to address all its findings relating to irregular, fruitless and wasteful expenditure

- The Interim Board should institute an independent forensic investigation into questionable and irregularly awarded contracts 

- The Interim Board should evaluate the feasibility of the business case for entering into agreements with rival broadcasters so as to ensure the public broadcaster does not cross-subsidise its competitors

- On conclusion of the forensic investigations into all financial irregularities, appropriate steps must be taken against any current or former employees and Board members who are found to have been complicit in the SABC incurring wasteful expenditure

- The Interim Board should ensure that a comprehensive progress report relating to all pending investigations is submitted to Parliament

- Parliament and National Treasury should review the funding model of the SABC 

- The Interim or new Board must start the process of filling the top three executive posts

- All SABC staff who failed to enter into performance management contracts should do so within 60 days of the adoption of this report

- The Interim board should investigate the nature of the State Security Agency's activities within the SABC

- The Interim Board must perform an audit of all remedial action, recommendations and orders that have been issued over the last three years

- The president should seriously reconsider the desirability of the Minister retaining the Communications portfolio.