SABC warns it cannot guarantee salaries at the end of March
The South African Broadcasting Corporation is at risk of
being "factually insolvent" if nothing is done to improve its
cashflow by the end of March.
This means the SABC cannot guarantee that it will be able to pay its employees' salaries at the end of this month.
The public broadcaster briefed Parliament's oversight committee on communications on its turnaround strategy and progress.
The SABC's chief financial officer, Yolande van Biljon, says on March 5 the organisation only had R201 million in its bank account.
"We anticipated an inflow of approximately R400m to the end of March, versus an outflow as a combination of payrolls and commitments, as well as our signal and broadcasting cost which amounted to R500m.”
This, Van Biljon said, clearly shows that the broadcaster does not have enough money to cover its expenditures.
"We owe 943m as of the end of February to trade and payables.
"We are anticipating factual insolvency, and we do anticipate a very difficult audit. The auditor-general as well the management of the organisation will find it difficult to approve our financial results in the absence of any support."
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