The South African Broadcasting Corporation’s (SABC) interim board is contesting a R1-billion contract, the SABC reported on Tuesday
The deal, which came to light in the board’s examination of the corporation’s financial records, was revealed in a presentation to Parliament’s communications portfolio committee in Cape Town.
Details could not be made public as the matter was under investigation.
The SABC said criminal charges could be brought against entities identified in the Auditor General’s report on the SABC. A preliminary report had been forwarded to the police.
”There were meetings with the authorities to frame the charges and the prosecution of claims. A final list of charges has been framed and I think there are two possible criminal charges,” said interim board chair Irene Charnley.
The cash-strapped SABC will start turning a profit by 2012, MPs heard on Tuesday.
”Losses will come down and the corporation [will] move to profitability by March 2012,” Charnley told the committee.
The broadcaster planned to repay all its debts by the end of the 2014 financial year.
Over and above the R200-million it was granted by the National Treasury last week, the SABC has applied for a five-year government guarantee of R1,4-billion.
This would ”allow the corporation to borrow money from institutions”, Charnley said.
On the R200m, she said the broadcaster would receive the funds between November and March next year, and would use the money to pay for commissioned local content programmes.
Charnley told MPs the corporation’s losses stood at R910-million, but that this figure was expected to start dropping, ”even in this financial year”.
The figure would not rise, she assured the committee.
A ”big problem” was costs, which had risen steeply, and remained higher than the corporation’s income.
The SABC had also run an overdraft of between R580m and R600m since March, the start of the current financial year.
Cost-cutting measures and a turnaround strategy implemented by the interim board in the past four-and-a-half months had saved the corporation about R65-million.
Charnley said the SABC was now ”stable”, and the interim board was preparing to hand over to the recently-announced permanent board in the middle of November.
Damning report
Meanwhile, it has emerged that due to a lack of controls by the broadcaster’s finance department, its employees splurged R11,33-million for the period January 1 2007 to July 31 this year on excessive petrol-card expenditure.
The interim board withdrew petrol cards for management in July this year, except where there was a contractual obligation.
”However, by September 2009, the petrol cards were still used by senior and top management,” according to the damning Auditor General’s report on the SABC released in Parliament this week.
The report stated that a general manager in the finance department had written to indicate in August that he was not aware of a formal communication regarding the withdrawal of the petrol cards, except in a statement made by Charnley in a staff meeting.
The interim SABC board is now looking at the contractual implications of withdrawing all petrol cards.
While petrol cards were issued to top and senior management for the maintenance and running costs of vehicles purchased by employees, the Auditor General’s report found there was no policy prescribing a limit for usage.
”The policy should also be revised to include disciplinary or corrective actions for cases of excessive use,” the Auditor General’s report recommended.
The report also found that millions of rands had been spent in fruitless, wasteful and irregular spending at the SABC. – Sapa