Katy Bauer
The sale of the South African Broadcasting Corporation’s Radio Jacaranda, a snip at R70-million, was the bargain of the century. The winning bidders own a station which reaches five provinces and has as many listeners as the far more expensive Gauteng-based Highveld.
Radio Jacaranda is stress-free wireless for a huge, fiercely loyal, largely white listenership. Not much news, lots of blasts from the past. A South African music quota mostly made up of the odd croon from Ge Korsten and a DJ style which is safely non-political.
The lucky winner, with a bid R20-million less than that of the opposition — Naledi — is Newshelf 71 (no relation to Newshelf 63 which won the more glamorous Radio Highveld bid, except for a common lawyer).
Prior to the announcement, Newshelf 71 was the arch outsider: even its members considered themselves out of the running.
Andrew Manderstam (South African), representing Newshelf 71’s foreign component, seemed thunderstruck by the decision. “I am very surprised but of course very happy.” Manderstam is no stranger to radio and controls 140 stations worldwide.
The more popular, Pretoria-based “black empowered” Naledi consortium members — equally surprised though less happy — were rendered speechless by the result.
The Independent Broadcasting Commission’s (IBA) Wednesday announcement on Jacaranda was so controversial it almost over-shadowed the results of the more-publicised Highveld bid.
Highveld went to Newshelf 63 for a whopping R320- million and had both Stan Katz (Newshelf 63/Primedia bigwig) and Minister Jay Naidoo bursting with glee.
At first glance the IBA decisions appear highly conservative. A case of pandering to the rich guys as usual. However, on closer inspection the choices perhaps make better sense. The IBA’s handling of the first privatisation deal in South African history had to ensure the most viable options for broadcasting were secured, provided of course certain criteria were met.
Newshelf 63 met those criteria as it had the largest proportion of historically disadvantaged shareholders. It also offered its black partners the cheapest money at a 11% interest rate. These partners, which include trade unions and a women’s group, have got themselves a huge slice of the action at Highveld without investing a cent, so far.
The Jacaranda winners also boast the largest historically disadvantaged component, with New Africa Investments — the powerful new owners of Johnnic – — having a 65.1% shareholding.
Newshelf 71 is also the only consortium with a foreign investor. The involvement of French broadcasting giants European Development International should guarantee access to a highly sophisticated network of foreign news, invaluable expertise in digital broadcasting and a sumptuous injection of French francs. Not even Stan Katz has all that.
Wednesday’s decisions will certainly shift perceptions of the IBA as simply good samaritan. Perhaps more of a blow for idealism than radio.
The further controversy regarding the matter of proceeds from the sale being snatched from the Sing Corporation and going instead to the government elicited comment from SABC radio chief Govin Reddy. Relieved that Naidoo had already left the venue, Reddy denounced the decision, saying that SABC would be badly hit by the loss of revenue.