The new Broadcasting Amendment Bill promises to sink public service broadcasting and visit an accounting nightmare on the SABC’s journalists, who would have to keep track of sources of revenue streams and the placement of stories and programmes on the corporation’s radio and television channels.
The Bill requires news editors to keep costing records when assigning a news story, by determining the source of revenue used in covering a news event. It must be decided whether the revenue was generated from public sources, such as the licence fee, or from the commercial pool, such as advertising or sponsorships.
Once submitted, ministerial permission is required to flight the item on public broadcasting radio and television services if the resources used in compiling it were generated from commercial sources, and vice-versa.
The same applies when a public radio or television channel seeks to flight a programme commissioned by the commercial broadcasting division.
This is a requirement of the Bill to facilitate the transition from the ”old” SABC into a corporatised public entity registered under the Company’s Act of 1973. The Bill requires that the public and commercial divisions of the SABC keep separate accounting books and generate revenue from separate streams.
The Bill casts doubt on the status of the regulator’s — the Independent Communications Authority of South Africa (Icasa) — recommendations submitted about five years ago on the protection and financial viability of public broadcasting services. Icasa, in that report, recommended a mixed funding formula — from licence fees, advertising and sponsorship — for public broadcasting services of the SABC.
As if the accounting nightmare is not enough, public service information and educational programmes could also be thrown out of the window because the cross-subsidisation arrangement that funded these programmes from advertising and sponsorship-generated sources is now in the balance.
Communications Ministry spokesperson Robert Nkuna downplays the adverse effects the Bill would have on the SABC’s operations.
”So far it seems this formula [cross-subsidisation] will work. If it doesn’t we will have to rethink it at an appropriate time. Cross-subsidisation will happen annually and thus far there is no specific amount that has been decided on.”
Nkuna says the separation of the accounting books for the two divisions is ”good when it comes to auditing”.
The Freedom of Expression Institute (FXI) views the developments in a serious light. Jane Duncan, FXI executive director, says: ”The Broadcasting Amendment Bill represents the death of public broadcasting and the rebirth of state broadcasting … this trend was established in the Broadcasting Act of 1999 which increased government control over the finances of the SABC.”
Cross-subsidisation of public service programmes has been at the heart of the SABC’s strategy in funding expensive information and educational programmes. This arrangement is necessitated by the skewed funding sources of the corporation — generating 16% of its income from the licence fee and 77% from advertising and sponsorship. The remaining revenue is generated from government grants and commercial activities such as merchandising.
According to the SABC 2000/2001 annual report, these figures translate into R345-million, R1,687-billion and R153-million, respectively.
The Bill adds to the woes to the SABC, still reeling from the resignations of two news executives, Barney Mthombothi and Mathata Tsedu. Media observers attribute the resignations to undue political interference from the government.
The Bill also puts the Communications Ministry on a collision course with Icasa through its proposal to establish two new regional television stations that would address the deficiencies of the SABC in proving programmes in all official languages.
It is not clear what informs this proposal as Icasa is still conducting a market feasibility study for regional television.The SABC and Icasa said they will make an official comment on the Bill when they make representations to the ministry and to the portfolio committee.