SABC increases Hlaudi’s salary. Again.

29 September 2016

Former SABC COO Hlaudi Motsoeneng’s salary was increased by almost half a million from R 3 784 000 to R 4 197 000 during the 2015/16 financial year, making him the highest paid executive at the SABC.

This is over and above the almost R1 million increase he received during the 2014/15 financial year. 

The further increase in Motsoeneng’s salary is a slap in the face of South Africa’s public, the courts, civil society and Parliament. 

The DA will request that an investigation into why and how Motsoeneng’s salary was increased by included in the anticipated parliamentary inquiry into the SABC.

According to the SABC’s annual report released yesterday, in his capacity at COO, Motsoeneng was the highest paid executive at the SABC during the 2015/16 financial year, even more than the Chief Executive Officer. This lends credence to the suspicion that Motsoeneng served as de facto CEO of the public broadcaster.

The annual report reveals that Motsoeneng was paid as follows:

- Basic Salary: R2 555 000

- 13th cheque and other commissions: R213 000

- Expenses and other allowances: R945 000

- Contributions to pension fund, medical aid: R485 000

- Total remuneration for the 2015/16 financial year: R 4 197 000

The annual report further reveals utter financial mismanangement as follows:

- R411 million loss in this financial year, on top of a loss of R394 million in the previous financial year.

- Consulting fees more than doubled to R80 million.

- Material losses due to unauthorised, fruitless and wasteful (UIFW) expenditure up from R58 million to R92 million, of which R19 million was due to recruitment where proper processes were not followed, and for which no disciplinary action was taken.

- Total UIFW losses included an increase in payments without contracts from R13 million to R40 million.

Importantly, the comments of the Auditor-General (A-G) were scathing.The A-G noted that:

- In many instances performance indicators were not well defined and not meeting standards of FMPPI.

- The SABC incurred expenditure in contravention of the supply chain management requirements.

- No supporting documents were supplied to A-G by the SABC to account for transactions amounting to R141 million at the entity.

- No effective steps were taken to prevent irregular expenditure at the broadcaster as required by the PFMA section 51(1)(b)(ii).

- Total UIFW amounted to R5 billion in the last two years at the entity.

The financial reports paint of picture of gross mismanagement at the Public Broadcaster. The DA looks forward to partaking in the parliamentary inquiry into the SABC and holding those responsible for its decline to account. 

Statement issued by Phumzile Van Damme MP, DA Shadow Minister of Communications, 29 September 2016