The printers of ThisDay newspaper were waiting for word from the broadsheet’s owners on Tuesday on whether they will be able to raise the money that will get the paper printed again.
This follows a decision on Monday by Caxton to stop printing the newspaper until it is paid money owed, which resulted in the newspaper not hitting the streets on Tuesday.
“They will tell us on Tuesday afternoon what will happen this week. We do not know if we will never go to print again, but not printing for a day is a big blow for advertisers,” a staff member who wished to remain anonymous told the Mail & Guardian Online.
Another staffer said employees were paid half of their September salaries on October 12, but have received neither their October salaries nor the remainder of their September salaries.
ThisDay editor Justice Malala called the newspaper’s staff together after 6pm on Monday and told them that the publication would not be on the streets on Tuesday.
“The bottom line of Monday’s meeting was that Caxton refused to print Tuesday’s paper, because of the financial difficulties that ThisDay is facing. There are too many debts,” the staff member told the M&G Online. “The atmosphere among my colleagues was sad and depressed.”
A source in the newspaper industry said Nduka Obaigbena, the major shareholder, was returning to South Africa from Nigeria with $3-million.
Obaigbena will hold a press briefing on Tuesday afternoon to discuss “the way forward”.
Caxton chief executive Piet Greyling said he has been in constant contact with the major shareholder, who has accepted his decision not to print the newspaper until Caxton is paid.
“The basic problem is that they can’t fulfil the conditions of their contract,” Greyling said.
He said his company agreed to take over printing the newspaper two-and-a-half weeks ago and drew up a contract that stipulated that financial security must be provided.
While waiting for security and for the contract to be finalised, the company began printing “at risk”, he said, but it is no longer prepared to do so.
“They didn’t hold up their end of the bargain,” Greyling said. “The major shareholder accepted my decision and he is trying to get some funding through from Nigeria.”
He said printing will continue when the contract is signed and the terms of security are fulfilled.
Bernard Briggs, managing director of ThisDay‘s former printers, The Newspaper Printing Company, said it had stopped printing the newspaper on October 4 — also for financial reasons.
“We stopped because they were unable to meet their financial obligations,” Briggs said.
“It is a serious step to take, so we gave them adequate notice,” Briggs said.
The company is still owed a “substantial” amount of money, he added. The company reportedly also owes money to paper supplier Mondi.
The newspaper, launched last year, failed to publish on Tuesday amid reports of serious financial difficulties.
Business Day reported that the newspaper faces R14-million in unpaid income taxes, owes its newspaper supplier about R4-million, and its pension fund is short by more than R2-million.
The report said ThisDay faces a liquidation application by a creditor in the Johannesburg High Court on Tuesday.
The Congress of South African Trade Unions said it was saddened by the non-appearance of the newspaper.
“We hope that there may yet be some way of saving the paper and the jobs of its workers,” said spokesperson Patrick Craven.
“If not, the quality and diversity of media in the country will have been greatly diminished.”
Attempts to contact the newspaper’s management were fruitless. The telephone service has been suspended by Telkom and the number of the newspaper’s company in Lagos, Nigeria, only rang.
According to staff members, they had to sell their furniture for money to survive. One journalist had to cash in an insurance policy to get some money.