Reports initially put the requested figure at over R3 billion but the SABC got half of that amount.
This means the cash-strapped public broadcaster will be able to go to banks to seek such a loan as it moves toward financial stability and good governance.
#SABC Mokonyane says a turn-around strategy has been presented to her this afternoon for her considering. The National Treasury has appointed a turnaround task team to look at the strategy
— SA Gov News (@SAgovnews) September 4, 2018
“Through working together with the Minister of Finance, we have been able to give the necessary support to the SABC to have an increased borrowing limit that would be able to deal with the historical challenges.
“The primary challenges of the SABC have to do with the historical debt and of important issues around content and quality of that particular content.”
Mokonyane says they are convinced that the SABC Board is capable of setting the SABC on a path of stability and recovery.
“Our engagement with national treasury has been concluded. As from a day ago national treasury has granted consent for the SABC to increase its borrowing limits from the capital markets in line with the Public Finance Management Act and the Broadcasting Act. We do believe that we have a public broadcaster that embodies sound corporate and financial management,” says Mokonyane.
SABC recorded a net loss of 622 million for the 2017/18 financial year, compared to the 977 million recorded the previous year.
The Minister also allayed fears coming from various media reports that SABC employees might not get their salaries end of this month. She says even discussions with independent producers have shown some positives.
“The Board and management have presented the current financial challenges to myself … the SABC will continue to ensure that employees of the public broadcaster will continue to receive their salaries as per the norm without prejudice. Equally suppliers owed by the broadcaster have been in engagement with the SABC.”