SABC can pay salaries for the next three months

SABC chief financial officer Yolande van Biljon says there is no anticipation of “Day Zero” at the public broadcaster for the next three months. Full staff salaries, Van Biljon said, will continue to be paid.

Van Biljon said on Thursday that progress is being made in cutting costs and stabilising the balance sheet of the public broadcaster.

“We are not out of the woods yet but we are making progress in improving our balance sheet,” said Van Biljon.

Meanwhile, communications minister Stella Ndabeni-Abrahams said government agrees the SABC needs urgent financial assistance. However, the minister was quick to point out that the turnaround strategy for the public broadcaster must first meet the requirements of national treasury.

“The stability and financial viability of the SABC is in all our best interests. A turnaround strategy that passes the test is key for the funding of the public broadcaster,” she said.

“The SABC has been experiencing liquidity problems due to historic financial management issues and the rapidly rising costs of content. The turnaround strategy is expected to address the working capital dynamics, unnecessary spending and various instruments to ensure the sustainability and viability of the public broadcaster.”

The turnaround strategy is expected to be finalised by September.

On Thursday, national treasury and the communications ministry, together with the SABC, will meet to devise interim financial assistance for the public broadcaster, while working on the complete turnaround strategy.  — SANews