Closing radio stations may be part of SABC’s contingency plan to solve its cash crisis, reports Jacquie Golding-Duffy
THE SABC has identified Radio SAfm and Radio Sonder Grense as two key operations it would consider closing should the corporation fail to resolve its cash crisis.
These radio stations are only two of 11 loss-making stations which the SABC is in charge of.
SAfm, formerly SABC’s flagship station, and Radio Sonder Grense, the only Afrikaans public broadcasting station, are the obvious choices to be scrapped should the corporation find itself further pressed for cash, say some sources. Others argue that although the stations are losing money, they are providing a public broadcasting service to several hundred thousand listeners which cannot be disregarded. (Radio Sonder Grense has an average daily listenership of 705 000 and SAfm has an average daily listenership of 305 000.)
The other radio stations, although unprofitable, are African-language based, a priority for the SABC as it has to be seen to be fulfilling its mandate as set out by the Independent Broadcasting Authority (IBA).
But, simultaneously, it is in financial dire straits with no revenue coming in from the stations. On the television front, the SABC is also fumbling with McKinsey Consultants urging the broadcaster to increase its ad revenue and cut back on indulgent promotions.
Although the IBA in the original Triple Inquiry suggested that the SABC operate only two television channels, SABC head of communications Enoch Sithole says it is “unrealistic” for the regulator to expect the SABC to cater for 11 languages on two channels.
Hence the SABC lobbied before parliament and got the go-ahead to continue operating three channels. “To drop SABC 3 will not save us costs, other methods have to be sought and we will look at loss-making radio stations. A business barometer cannot be the only factor as we have to cut costs without affecting programmes and so not affect viewers,” he said.
According to Sithole, Radio Ukhozi (formerly Radio Zulu), Radio Metro, Radio Good Hope and 5Fm are the only profit- making radio stations.
Minister of Post, Telecommunications and Broadcasting Jay Naidoo’s announcement that Cabinet approved “in principle” the funding of certain of the SABC’s public broadcasting activities does not immediately resolve the SABC’s cash crisis. The targeting of radio stations is seen as part of a contingency plan being drafted.
It is rumoured that plans to highlight operations that can “definitely go” are being made in conjunction with McKinsey Consultants, the company called in to assist the SABC with streamlining. McKinsey is renowned for making broadcasting and financial institutions more streamlined based on ruthless economics. It has previously recommended staff cutbacks at the BBC. Consultants and SABC head of finance Talib Sadik refused to comment.
However, the Mail & Guardian spoke to union sources privy to talks between management and McKinsey and said proposals included at least a 20% cut in staffers across the board. This means the SABC will not be concentrating on cutting back on administration and frivolous departments but the jobs of journalists and producers will also be on the line.
SABC representative Marj Murray says there are proposals on the table but none are firm recommendations. “There are no definite figures or percentages being bandied about,” she said.
Sithole adds that the SABC is lagging behind broadcasters internationally and many of the expenses incurred by the 5 000- strong staff could be curbed.