SABC board's decision on COO: Failure of fiduciary duties and responsibilities

Wednesday, 9 July 2014

The SACP notes with concern, media reports that the board of the public broadcaster the South African Broadcasting Corporation (SABC) has appointed Mr Hlaudi Motsoeneng as Chief Operations Officer (CFO) and that the Minister of Communications Ms Faith Muthambi has endorsed the appointment. The SACP holds the board accountable for its actions which amount to misleading the Minister, who should have been given sufficient information and all relevant reports to apply her mind thoroughly. The appointment of Mr Motsoeneng constitutes gross disregard of a series of investigations and audits into the SABC relating to governance and administration:

On 17 February 2014 the Public Protector release an investigation report into the SABC following a series of allegations of widespread maladministration and corruption, including irregularities in appointments, misinterpretation of facts relating to qualifications, fraud and abuse of power.

The report of the Public Protector was preceded by another report, from an investigation conducted by the Special Investigation Unit (SIU) which included a focus on corruption as one of its terms of reference.

In 2013 an independent skills audit was conducted by an audit firm PricewaterhouseCoopers which pointed to lack of skills, qualifications and capacity in strategic positions, among others.

Mr Motsoeneng's appointment undermines the image and integrity of the board and the public broadcaster as whole, having been made without any remedial action taken pertaining to those investigation reports - particularly those that have findings and recommendations directly affecting him.

The SACP has held marches to the SABC, among others demanding adherence to the principles of good governance and an end to corruption. The board has never replied to our memorandums, and, clearly, its appointment of Mr Motsoeneng suggests that the status quo will continue and inhibit transformation and development of the public broadcaster.

The fact that there has been no announcement of any action and breakthrough on the report of the SIU and the skills audit relating to lack of qualifications and poor or substandard capacity to take the SABC forward suggests that the acts of corruption and maladministration, alleged, perceived or real, will continue unabated. In fact the appointment by the board implies complicit attitude towards, and failure by its members to exercise, their fiduciary duties and responsibilities. This means the public has reasonable grounds to lose confidence in the board.

The SACP calls on the Minister to review her decision endorsing the appointment. The Party will intensify its mass action programme and campaigns to achieve transformation at the SABC, root out corruption and ensure the public rather the private interests of individuals and private companies.

Statement issued by the Central Committee of the SACP, July 9 2014

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