Sunday rag City Press reports some of their reporters have seen documents from the Special Investigating Unit’s (SIU) investigation into the SABC. These papers reveal how the broadcaster blew hundreds of millions of rands under former COO Hlaudi Motsoeneng. The publication describes most of these deals as ‘dodgy”. There is also mention of bonuses paid under strange circumstances.
BusinessTech.co.za says the SABC is “currently on the brink of financial collapse, needing R600 million a month to operate, while only generating R380 million in revenue”.
The SIU launched an investigation into the group and is currently in its first phase of taking a civil claim against former executives to court, where a new host of information has been revealed.
In the documents the SIU is trying to recover funds that were given out in irregular conditions.
This includes a R11.8 million “success bonus” (success in pissing away tax payers’ money – Ed.) paid to Motsoeneng, and R62 million, which was paid out to Gupta-owned media entities.
Another R27.7 million was paid out in a vanity project run by Motsoeneng, called the Heritage Concert, which was tied to his failed 90% local content policy.
R4.5 million was paid out for seven new websites, of which only one was ever created, and R19.9 million was paid out in a questionable accounting contract which ballooned from an initial price of R1.7 million.
The SIU also identified another ballooned contract of R52 million with another service provider.
The SABC confirmed that all of the contracts and payments are currently under investigation by the SIU, adding that the current management team inherited an irregular expenditure bill of R5.5 billion.
In a related report the SABC also admitted that it has been issued with a notice by the Companies and Intellectual Property Commission (CIPC), asking the broadcaster to explain why it believes it is not trading recklessly under insolvent circumstances.
MyBroadBand.co.za reports the SABC’s Neo Momodu said the broadcaster has “completely collapsed”, and attributed its financial ruin to irregular spending by previous management – namely Motsoeneng.
“The SABC would like to make it clear that Mr Motsoeneng was the central figure in the complete financial and governance collapse of the corporation which the current executive management is redressing,” Momodu said.
