New team at SABC faces cash challenge

However, some observers fear the broadcaster could run the risk of being bedevilled by the same poor relationship between the board and management as in the past.

The fears were sparked by Communications Minister Siphiwe Nyanda's controversial approval last week of the interim board's appointment of a new CEO — former Telkom Media chief content officer Solly Mokoetle — before President Jacob Zuma had announced the public broadcaster's new board.

This means the board will not be able to appoint a CEO of its choosing, as boards usually do.

The SABC's financial results for 2008-09 showed a R910m loss, which interim board chairwoman Irene Charnley said could not entirely be laid at the door of the recession.

The losses were in part due to a 15,3% increase in employee costs, unbudgeted operational expenditure on the expansion of foreign bureaus and SABC News International, a 15,3% increase in programme, film and sports rights, a 38,6% increase in the depreciation of property, plant and equipment costs and the amortisation of computer software, plus a 38,2% increase in consultant and management fees, mostly to rectify the outdated software problem, SABC spokesman Kaiser Kganyago said.

The new board's duties begin on January 10, and one of its and Mokoetle's first tasks would be to look at the “austerity measures” already implemented by the interim board and to devise a strategy that would allow the SABC to service the government guarantee, he said.

There had been “a lot of cost cutting” and the SABC had pared down to its core business of broadcasting, Kganyago said.

Mokoetle said it would be “unfair and irregular” for him to comment on his ideas on how to get the public broadcaster back on to solid financial footing as he would only take up his new post on January 4.

“Contractually, I can't, I am still working my (notice month) and I can't say anything yet,” Mokoetle said.

Kganyago said Mokoetle had made it clear he intended to consult widely with the board and management when he assumed his position next month.

“He said he would spend the first few weeks just listening. What he is thinking now, that will just be his personal view,” Kganyago said.

Source: Business Day

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