What conditions the SABC have to meet
According to Board Chairperson, Bongumusa Makhathini the public broadcaster has met 10 of the 11 preconditions that were set out by National Treasury in overseeing the R3.2-billion bailout that SABC applied for.
In order to comply with the conditions, SABC had to:
- determine their immediate cash requirements, supported by detailed cash flow projections for the next 12 to 18 months;
- submit a list of identified initiatives for revenue enhancement and cost-cutting initiatives that the entity has been implementing in the interim;
- conduct a thorough investigation into what caused the financial collapse of the SABC and why previous turn-around plans have failed to be successfully implemented;
- provide an update on how the entity is dealing with the people implicated in reports;
- produce separate financial reporting for their public and commercial broadcasting services;
- identify non-core assets for sale to assist with reducing the recapitalization required by government. Submit a comprehensive property strategy and a list of non-core assets identified for disposal including the timelines for disposal and the estimated values.
- commit and start a full review of policies, legislation and regulations affecting the Broadcasting sector and the SABC within a digital environment;
- develop a comprehensive Private Sector Participation strategy highlighting initiatives to be implemented and the net values to be derived from these partnerships;
- develop a comprehensive capital and content investment plan which includes the forecast return on investment of all Capex and content spend, split between commercial and developmental activities;
- appoint a restructuring team headed by a restructuring officer and supported by Broadcasting industry experts to lead a restructuring and turnaround of the entity; and
- appoint a new Board.