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BusinessLive reports that Madoda Mxakwe, CEO of the SA Broadcasting Corporation (SABC), says his team inherited an organisation in financial ruin stemming from years of disregard for internal controls and governance processes.
Testifying at the state-capture inquiry on Tuesday, Mxakwe described a dire situation at the public broadcaster, which is technically insolvent, overburdened by staff salaries, and drowning in irregular expenditure. The SABC has asked for a R3.2bn government guarantee to stay afloat and to pay off some of its debt, but its bid for funding has so far been unsuccessful, largely due to its failure to meet some of the Treasury’s conditions. “The SABC is technically insolvent. We run an organisation where every single month employees are very depressed. They don’t know whether they will be able to get their salaries. Every month, R265m is dedicated toward paying salaries. Once we have done that, we have absolutely nothing left,” Mxakwe told the inquiry. He said there was previously a “complete disregard” for policies and processes and 186 cases of wrongdoing were found. “Disciplinary processes had to be enacted in every case concerned… We’ve been subjected to a lot of backlash as a result of this… We are dealing with all of those cases, but at the same time we are strengthening internal corporate controls,” Mxakwe advised.
- Read the full original of the above report by Amil Umraw at BusinessLive
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