Ferial Haffajee
Kagiso Media has pulled the plug on a fledgling publication with 19 employees left jobless before Christmas.
Staff charge that the two month old publication, Local Government Chronicle, had great potential to attract advertising. Last week’s edition, which was axed just prior to publication, showed advertising bookings of over R70 000.
But Kagiso Media says the Chronicle was losing money hand over fist. The closure is in line with the new media company’s plan to cut back on its publishing interests. A controlling stake of Publico – which initially started the Chronicle with British partners Emap – was bought by Kagiso in July.
”We had made it clear [when we bought Publico] that we were going to assess all the magazines in the group,” said Kagiso Media’s chief executive Fani Titi this week, adding that magazine publishing was in difficulties and that the media company had its heart set on radio interests.
Staff, who were all still on probation because the publication was so young, received a one month severance package and a pay-out for holiday leave due to them. The package, though higher than norms for companies which shut up shop, was cold comfort. Many have no employment secured after being attracted away from their jobs to Local Government Chronicle which offered competitive packages.
The niche publication filled a gap in a market where there is little substantial coverage of local government written specifically for those involved. Staff claim a handsome pick-up rate for the magazine and point to a letters bag already stuffed. Among its fans was Gauteng premier-designate Mathole Motshega as well as a host of mayors and councillors all welcoming the snappily presented news it offered.
The British company Emap also pulled out of the publishing deal because it did not want to continue without a black partner. The Chronicle’s editor Jeff Makgetha this week said: ”When Kagiso bought Publico there was great excitement in the market that there was now an empowerment partner and this helped ensure our viability.
”They’re closing something which in local government is not just a commercial venture but also a step in empowerment and capacity building in the sphere.”