On Wednesday, CEO Madoda Mxakwe has revealed that the South African Broadcasting Corporation (SABC) is technically insolvent, and has no choice but to embark on the mass retrenchment of workers in order to avoid total collapse.
Mxakwe told reporters in Auckland Park that the cost-cutting measures that were already implemented saved the SABC R463 million in the past two quarters but was not enough.
He said: “If you look at our net loss to date, we are sitting at R323m. The focus loss for the financial year is at R805 million. This brings us to the focal point of reviewing all operations and biggest cost drivers [to] ensure a commercially viable corporation.
“The cost of the public mandate has been sitting at R 4.2 billion, projections show that costs in the next three years would be at R6 billion. We are technically insolvent as the SABC and cannot fulfill our monthly obligations…we are not able to fulfill our financial obligations. If we were a private company, we would have been recapitalised, and this is why we are engaging all stakeholders.”