Graham Welch and Justin Arenstein
Irate staff at the beleaguered Afrikaans talk station Punt Radio laid criminal charges against their managers this week and ordered attorneys to apply for the company’s urgent liquidation.
The staff including high-profile presenters, journalists and former managers have not been paid salaries for two months. They allege that Punt has been deducting medical aid, pension, unemployment insurance benefits and tax from their salaries since August 2000 without paying the money to the South African Revenue Service or their insurance companies.
Johannesburg police representative Sergeant Amanda Roestoff confirmed that six former Punt journalists lodged theft and fraud cases against the radio station and its holding company, Seriso Media, on Monday February 5.
“The employees apparently lodged the case due to the possible liquidation of the radio station. They handed documents to us on Thursday and made seven sworn statements allegedly proving fraud. I cannot say much more at this stage, but stress that the amount involved is unknown at this stage,” said Roestoff.
Cape Town attorney Gerhard Mostert confirmed that he was briefing senior counsel for an urgent liquidation order against Seriso after Punt failed to pay morning presenter Lynette Francis her salary for two months.
“My client has not resigned yet, but has been off air since January 15 when negotiations for payment broke down. We have been very patient, but were forced last week to table our final written demand for settlement with their attorneys. The radio station has failed to respond, and we are therefore forced to proceed with what is a rather radical legal solution,” said Mostert.
The legal challenge is the latest blow for Punt management. The company has lost almost all its senior staff over the past six months after a series of potential investors backed out of deals.
Punt sales and marketing director Willie de Villiers said on Tuesday that the station expected to have the backing of a new investor by Wednesday. No such benefactor had, however, appeared by Thursday afternoon.
“Staff have not been paid due to the cash-flow problem, but we expect to be able to pay January’s salaries and all outstanding money from December within 10 days,” De Villiers said.
De Villiers was not prepared to disclose the sums involved, but the station was reporting losses of R1-million a month when African Media Entertainment (AME) sold the station to Seriso. Reports in January indicated the station would need a minimum of R3,2-million to cover debts.
Seriso Holdings still owes AME R1,2-million for Punt Radio. AME also holds Punt’s Gauteng and Cape broadcast licence.
Punt went on air in November 1997, but soon ran into trouble and was provisionally liquidated in June 1998. AME reached an agreement with the liquidators in September 1998 to take over the station. On August 1 2000 the executive directors of Punt, together with Orbtech, reached an agreement with AME to acquire Punt. African Eye News Service