A report calling for the dissolution of the board was adopted in the National Assembly, after receiving support from the majority of the political parties.
When the vote was put to the House, the Democratic Alliance disputed the procedure of the tabling of the report. The single objection was noted by the National Assembly Speaker Max Sisulu.
The report followed an inquiry into the ailing board by the Portfolio Committee on Communications. The broadcaster recorded a financial loss of R839 million for the last financial year as a result of declining revenue and unrestrained over-expenditure.
“The committee concluded unanimously that there is no possibility of the current board being collectively able and legally competent to fulfill its statutory duties,” said Ismail Vadi, Chairperson of the Portfolio Committee, addressing Members of Parliament.
“We, therefore, recommend that the House adopts a resolution recommending to the President the dissolution of the entire board, and that an interim board be nominated as soon as possible to manage the affairs of the corporation.”
Vadi said that the inquiry had been necessitated by media reports relating to the resignation of the majority of board members; the broadcaster's cash flow crisis; the possibility of strike action by its employees; the protests by independent producers relating to the non-payment of fees to them; the various legal battles between the former Group CEO Dali Mpofu and the board as well as the perceived breakdown in effective corporate governance at the corporation.
All the political parties that participated in the inquiry commonly agreed that the SABC was in a “state of paralysis”.
“There is a lack of common purpose and cohesion among members of the board and the executive management. This has impaired their ability to carry out their statutory fiduciary duties.
“There was also evidence of serious lapses in sound operational management of the SABC by the executive management,” said Vadi, adding that the committee believed this warranted urgent attention by the government.
“Finally, it is our view that the Board does not enjoy a healthy relationship with the Shareholder that is necessary for timeous reporting and proper accountability.”
He said the board members themselves did not believe that they had the will nor tenacity to continue fulfilling their duties and believed that they no longer enjoyed the confidence of political office bearers.
“At the end of the inquiry, they in fact called upon this House to dissolve them, so that a fresh start could be made.”
The report noted that an interim board must be appointed as soon as possible and that the Auditor-General should investigate allegations relating to the manipulation of tenders, conflicts of interest and other financial irregularities at the SABC.
This notion was welcomed by many of the political parties who debated the report.
The report will now be forwarded to President Jacob Zuma for consideration.
Article published courtesy of BuaNews
