Payments to SABC non-executive board members increased by almost 200% over the past financial year, as the board held almost double the number of board and sub-committee meetings it is required to do.
Non-executive emoluments for the year ended March 31 2005 stood at more than R2-million, while in the previous financial year it amounted to R714 000.
The board is required to meet at least six times a year and its various sub-committees a further three times a year, a total of 36 meetings — almost half of the 70 meetings held in the past financial year.
The audit, black economic empowerment, human resources and news committees met five or more times last year, while seven board workshop meetings and 17 special board meetings were held in the 2004/05 financial year.
This suggests the board is using the broadcaster as employment and playing an executive rather than oversight role.
A corporate governance expert and former director, who did not want to be named, expressed alarm at the number of meetings and the increase in payments the board attracted. He said in instances where a board has to meet more times than it has been allocated, the governance committee has to take a conscious decision and record the extraordinary circumstances that require additional meetings and inform the shareholders. In the case of the SABC, this would be the government. Such special permission is not noted in the annual report.
Describing serving on public entity boards as a ‘thankless taskâ€, he also noted that board chairpersons are normally remunerated on a flat fee in monthly payments rather than per meeting, otherwise ‘this would be an anomaly that will no doubt create problemsâ€.
SABC board chairperson Eddie Funde was present at 53 meetings within the financial year, earning him R417 000 — up from R43 000 in the previous year. Deputy chairperson Christine Quanta attended 38 meetings, earning her R252Â 000 — up from R26Â 000 the previous year.
Third in the earnings list was board member Noluthando Gosa, whose attendance at 47 meetings netted her R198 000 as opposed to R15 000 the previous year.
Earlier this month, Gosa resigned from the board, claiming that widespread corruption and a lack of corporate governance had led to her decision.
She forwarded her letter of resignation to President Thabo Mbeki, Minister of Communications Ivy Matsepe-Casaburri and the chairperson of the parliamentary portfolio committee on communications, Mpetjane Lekgoro.
Gosa also forwarded a 13-page dossier to Auditor General Shauket Fakie, detailing the corporate governance failures that she felt needed to be investigated.
She alleges that:
- Board members were receiving payments that were substantially higher than what they were entitled to receive because of excessive meetings.
- R9,-5-million was spent on a performance management system without board approval.
- The board failed to act on three forensic reports on the commissioning of the current affairs show Roundtable as well as the supply of SABC content and financial information to a competing company, Mindset.
- A board member who owned a production company tendered for SABC work.
- A board member who owned a technology company won a multimillion-rand SABC tender.
According to the SABC, Gosa is currently under investigation for possible violations of corporate governance. The investigation centres on whether she was responsible for instructing former SABC spokesperson Paul Setsetse to issue a false statement. The statement related to the SABC’s failure to show Deputy President Phumzile Mlambo-Ngcuka being booed at a Women’s Day rally.
Gosa, who is the CEO of Akhona Properties, is abroad, according to an employee, and is only expected back in South Africa on December 22.
SABC chief director of public, regulatory and international affairs Phumelele Ntombela-Nzimande said the company secretary had refused to give the Mail & Guardian access to the SABC’s board charter and code of conduct.
Funde was not available for comment and a promised statement from the SABC had not arrived by the time of going to press. — Additional reporting by Thebe Mabanga