Place the SABC under administration - Phumzile Van Damme

DA NS says Pravin Gordhan should reject request to Treasury to guarantee R1.5bn bank loan

Pravin, do not extend R1.5 bn guarantee to Hlaudi; place the SABC under administration 

Date: 10 July 2016

The DA calls on Finance Minister Pravin Gordhan and Treasury to not extend their R1.5 billion guarantee to the SABC, but instead place it under administration. 

Reports that the SABC's finances have deteriorated so badly it will be forced to approach the banks for a loan with a National Treasury guarantee, should ring serious alarm bells for Minister Gordhan.  

The SABC should not need bailing out - it could be profitable, like many broadcasters in South Africa are, if run properly.

It is clear that under the tenure of Hlaudi Motsoeneng, CFO and Acting CEO James Aguma, and Communications Minister Faith Muthambi, the SABC is being run into the ground. Motsoeneng even overruled the decision by a review panel and awarded a R167 million contract to President Jacob Zuma’s daughter, Gugu Zuma-Ncube. 

Instead of being managed as a national asset, with careful consideration of the public finances required to prop up the SABC, the public broadcaster is being run as a tool for political patronage for the ANC and its mouthpiece.

It is time for National Treasury to take the reins, arrest any further drains on the fiscus and find practical solutions to stabilise the SABC’s financial position. 

We trust that Minister Gordhan will do what is best for the SABC, and for South Africa, and not the ANC in this instance. 

Statement issued by Phumzile Van Damme MP, DA National Spokesperson, 10 July 2016