GRAHAM WELCH, Pretoria | Monday
AFRIKAANS talk station Punt Radio has agreed to co-operate with police after six senior former employers lodged tax evasion and fraud charges against the troubled station.
The six disgruntled former managers, journalists and presenters laid multiple fraud charges with police in Morningside last week after Punt allegedly deducted tax, medical aid and insurance instalments from their salaries without paying the money across to the South African Revenue Services and the relevant insurance companies since August 2000.
Punt sales and marketing director, Willie de Villiers, said the station’s priority was to protect itself against these charges but stressed Punt’s management would comply with the Company’s Act and disclose anything relating to the case to investigators.
De Villiers was not prepared to comment on reports that former morning show presenter Lynette Francis had applied for the urgent liquidation of the station until he had received more information. Francis’ attorneys have indicated that they will proceed with the action, after station management and the popular morning show presenter were unable to reach an agreement over money owed to her.
Seriso Media Holdings, Punt’s holding company, is desperately searching for an investor to cover day-to-day operating expenses. Earlier in the week De Villiers said the station expected to have an investor on board by Wednesday, but no one had come on board by end-business on Friday.
Seriso was forced to cancel a planned listing when it failed to meet its minimum subscription requirement of R4m. It had planned to raise R20m.
Shortly before the proposed listing senior station management staged a walkout after a heated staff meeting. One of the managers said the walkout was as a result of dissatisfaction with the role played by the directors. All the management listed in the prospectus released end October have subsequently left the station.
Seriso bought Punt Radio from African Media Entertainment (AME) in August 2000 for R3m. The company still owes AME R1.2m. AME will hold the radio stations’ broadcast licences until final payment is made.
Punt hit financial trouble shortly after it was launched in 1997 and was rescued from provisional liquidation September 1998 by AME. AME sold the station after it could no longer sustain Punt’s R1m per month loss. – African Eye News Service