Auditor-General Tsakani Maluleke says the South African Broadcasting Corporation (SABC) has continued to incur financial losses that have resulted in the company not generating sufficient cash flow to pay short-term debt.
The AG was briefing Parliament’s Standing Committee on Public Account on the annual financial statement report of the SABC for the 2020 and 2021 financial year.
The office of the AG says based on the current financial projections of the public broadcaster, it could take up to more than six years before it is financially stable.
Business Executive from the AG’s office, Andries Sekgetho, says the organisation has received a qualified audit opinion in its annual report under review due mainly to irregular expenditure and a lack of consequences in its supply chain management.
Sekgetho says, “The institution continues to incur operating losses. They are even forecasting over the next three financial years, they will continue to incur losses. So if you are incurring losses it means that if I can take a step back it will be six to eight years that has not been able to show a profit and that actually must raise the alarm in terms of its financial viability. And they still continue to project negative operating cash flows and that means like I mentioned earlier, that means their operation is not able to generate enough cash to pay the short term debt as and when they arise.”
Turnaround strategy
She said government will continue to support the public broadcaster on its TV License Amnesty aimed to write off overdue debts.
Ntshavheni added that among her biggest achievements in office so far was the revival of the broadcast digital migration process and her success in reducing the number of court actions against her department.
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