LISTEN: Cash-strapped SABC given credit extension by Treasury
The South African Broadcasting Corporation (SABC) has been given the green light to borrow more money as it looks solve its financial woes.
National Treasury has given the public broadcaster permission to borrow R1.2 billion from banks.
Communications Minister Nomvula Mokonyane made the announcement on Tuesday.
The SABC suffered net loss of R622 million in the 2017/18 financial year, which is somewhat less than the R977 million it lost during the previous year.
Mokonyane says the credit extension will allow the SABC to pay its debtors.
“Suppliers owed by the broadcaster have been engaging the SABC and there has been progress in effecting payment to creditors. Monies raised through the process consented too by Treasury will also be used to pay creditors including independent producers.”
She says the public broadcaster’s management has assured her that employees will continue to be paid their salaries.
Mokonyane is confident that the SABC is embarking on a positive path.
“We do believe we have the right skills in the board and management to drive a robust turnaround strategy. This will lead the broadcaster to a new path that embodies sound corporate and financial management.”