GLOOMY: State broadcaster says evasion rates increased to more than 82% in 2021 and 2022…

By Lehlohonolo Lehana

South African Broadcasting Corporation (SABC) has presented its 2022/23 annual report in Parliament today, showing a net loss of over R1 billion as well as an approximately eight percent drop in revenue down during the period.

The report notes that the SABC faced challenges from funding models and internal and external factors affecting financial results. However, the corporation achieved several significant milestones.

The SABC says the significant under-performance can be attributed to a variety of internal and external factors, including, but not limited to, the growth in audience ratings that did not meet expectations, the impact of analogue switch off and load shedding, the inability to successfully monetise sport properties and other content and the increasing TV Licence evasion rate.

According to online publication Mybroadband, the evasion rate from 2018 to 2023 was as follows: 2018 — 72%; 2019 — 69%; 2020 — 81%; 2021 — 82.1%; 2022 — 81.7%; and 2023 — 87%.

“After seven years of consistently improving net losses, the year under review unfortunately saw a significant regression. This is as a result of revenue that was 7.9% less than 2021/22 financial year and 27% less than budget. The SABC made a net loss of R1.13b. This translates to a R949m more than the previous financial year. The cash reserves consequently decreased by R709m (60%) as compared to the R300m recorded in the previous year,” reads SABC’s statement.

Despite the bleak results, the SABC maintained that it has been delivering on its mandate despite the “challenges”, continuing to be a dominant force in the sector with millions of viewers and listeners.

It also noted the launch of its streaming app, SABC Plus, and the return of the METRO FM Music Awards as highlights during the year.

“While in its final year of implementation the SABC could report that nearly all the activities committed to in turnaround strategy were implemented, the inability of the activities associated with revenue improvement and legislation to translate into improved financial results was a major setback,” it said.

It said that the utilisation of the bailout funding continued to be rigidly managed within the set allocation criteria for content and capex investments.

Due to the significant revenue gap that resulted in the increased net loss and the delayed financial benefit realisation of its turnaround strategy, the Auditor General of South Africa had concluded that material uncertainty of the SABC’s ability to maintain its going-concern status exists and is so pervasive that a “disclaimer opinion” was issued.

“This is despite a 70% reduction in audit findings over a 5-year period with significant improvement in financial controls. There are no audit qualifications remaining in 2022/23 financial year related to the preparation of and fair presentation of the financial statements and the internal control environment,” it said.

“With the on-boarding of the new board, after the corporation was without a board for six months, the board has prioritised the stabilisation of revenue generation and various interventions that have or are being implemented, “it said.

Reflecting on Cabinet’s approval of the SBC Bill to be tabled in Parliament, the group said that it anticipates “imminent positive developments in the legislative environment” – and with this, confidence in “turning the corner towards financial sustainability and growth”.

“The SABC is also excited about the opportunities SABC Plus holds, early successes with new content are yielding results and planning for the 2024 national elections are on track.”

BOSASA: AGRIZZI AND MYENI IN COURT

DOSSIER: In two separate Bosasa cases, the company’s former senior executive Angelo Agrizzi referred for mental observation and ex-SAA Airways chairman Dudu granted R10 000 bail on fraud and corruption charges…

By Lehlohonolo Lehana and SA News

The Pretoria High Court has ruled that former Bosasa chief operations officer Angelo Agrizzi be referred for mental observation to determine his fitness to stand trial in the R1.8 billion Bosasa and Correctional Services Department matter.

Agrizzi appeared virtually before Judge Makhoba . Handing down judgment, Judge Makhoba said that it was not for the court to decide whether a person is mentally fit to stand trial or not, instead, it is for the professionals to decide.

The judge also declared that it is the State’s responsibility to ensure that Agrizzi is safely taken to a mental institution and that he takes his medication.The matter relates to four tenders awarded to Bosasa and its subsidiaries between August 2004 and 2007.

The tender was for rendering catering and training services, the installation of CCTV cameras, installing perimeter fencing, and supplying a television system and monitoring equipment.

The matter has been postponed to 31 October 2023 for the results of mental fitness for Agrizzi.

Meanwhile former South African Airways board chair Dudu Myeni was granted R10 000 bail after she was arrested for fraud and corruption this morning.

Myeni and her co-accused, former Sondolo IT Director Trevor Mathenjwa were arrested for receiving gratification of over R300 000 from Bosasa and its subsidiary Sondolo IT. They appeared in the Richards Bay Magistrate’s Court on charges of fraud and corruption.

Investigating Directorate spokesperson Sindiswe Seboka said they were appearing on charges linked to Bosasa corruption amounting to R300 000.

They were released on R10 000 bail each.

Seboka said the pair was arrested this morning on charges of corruption and fraud of over R300k, for gratifications offered and received from Bosasa and its subsidiary Sondolo IT.

“During the tenure of Myeni as chairperson of the SAA, she had a legal duty to disclose her interests in terms of the SAA Conflict of Interest Policy, which we allege she failed to do so, “Seboka added.

“Myeni thus stands accused of corruption for receiving gratification from Bosasa subsidiary Sondolo IT, offered by Trevor Mathenjwa, the company’s former director. Myeni is accused of having received security upgrades for her Richards Bay premises during May 2014 to March 2015, to the value of R200k. She is further accused of benefiting from hotel accommodation and travel expenses for her and persons close to her, from Bosasa, facilitated by Blake Travels, between May 2014 and March 2015 for over R107k,” Seboka said.

The matter returns to court on November 17 2023 for disclosure of the case docket.