WHEN it was announced that the SABC was to sell six of its regional radio stations everybody cheered. Government rubbed its hands in anticipation of receiving a huge whack of much needed revenue. Potential bidders were finally in with a chance of becoming rich as well as famous. Even the public agreed that 70 years of listening to turgid, conservative airplay was enough.
But these are not the only things in the sale’s favour. What industry could be more honourably privatised than the monstrous broadcaster of Nationalist propaganda not to mention Afrikaans pop music? This, combined with it’s unfashionable legacy as a monopoly, made it imperative the auction be conducted with impecable political correctness.
Although the SABC is the seller, the final decision regarding a buyer lies in the hands of the democratically endowed IBA. The selling off and opening up of the airwaves is the biggest privatisation deal this country has seen since Iscor was sold off in the 1980s. The stakes are high but IBA involvement should ensure no automatic triumph for the highest bidder and no depressing tales of corruption as a consequence.
The first round of bidding for three of the six prime, established radio stations came to an end on Wednesday in Johannesburg. The bidding started off in Cape Town a fortnight ago with Newshelf 63, Crescent Consortium and Moribo fighting for control of KFM. Next to come under the hammer was Natal’s East Coast Radio bid for by Dynamo Investments, New Radio Consortium and Moribo Consortium.
M&G Media, owner of the Mail & Guardian, is associated with the New Radio Consortium which bid for Radio Oranje as well as East Coast.
This week’s Johannesburg hearings saw another clash between Newshelf and Worldwide with the third bidder being David Blood Associates.
The stakes are high and the bids range from R11- million from Free State Media for Radio Oranje to R320-million from Newshelf for Highveld Stereo.
The booty is precious, and any businessman worth his weight in feathers knows that to have a stake in one or more of the stations is more than a licence to say “hello mum” to millions at will it’s virtually a licence to print money.
Because the process has been a non-sexist, non- racist highly democratic one, for a non-refundable fee of R30 000 anyone could be a player and for a few dozen million rand on top of that anyone could be a contender.
The most controversial bidder is undoubtedly Newshelf. The consortium which is 40% Primedia owned and would be almost 100% Primedia controlled, has made them an easy target. Should Newshelf win the bid for Highveld it would effectively mean that Primedia, which already owns 100% of Radio 702, could hog almost half of Gauteng’s adspend.
As regards the possibility of Newshelf winning both its regional bids as well as its two new radio licences, its competitors have raised objections on the grounds that this could become a monopoly in the making.
A valid concern in the sense that it would then control three up-and-running, adspend-rich radio stations.
However, if all goes well, in six months’ time there should be 46 new radio stations in Gauteng alone. With people like Richard Branson as probable competitors, some healthy competition and consequent spreading of adspend jam would be ensured.
Vetting of bidders as regards labour relations has also thrown light on Primedia shortcomings in this regard, and therefore the possibility of mirrored problems for Newshelf.
When John Matisonn asked Stan Katz of Newshelf whether 702 employees were union members, Katz replied that they were not, as there had never been any need for such membership. This is not quite true as some 702 journalists have been warned against becoming union members, and the reply prompted a smile from Matisonn.
Having said this, between the IBA and fellow competitors little dirt was dug up on most applicants.
Both the SABC and government have agreed to accept the decision of the IBA as final regarding winning bidders. But this too is not yet a fait accompli.
Legally, as current owners, the SABC could refuse to accept the IBA’s decision. It would be a scandal. It would be a slap in the face for the entire democratic process, but if Minister of Posts and Telecommunications Jay Naidoo et al are faced with a difference in price of R190-million for one station alone, they just might buckle.