[Photo source: Business Live]

The Organisation Undoing Tax Abuse (OUTA) is concerned about the risk of a financial crisis for SABC, as the proposed SABC Bill of 2023 fails to address critical issues of financial sustainability for the South African Broadcasting Corporation (SABC).

OUTA believes it is crucial to have strong legislation and policies to govern the SABC. This will enable the entity to regain public trust and ensure its editorial independence. It is no secret that the SABC has been facing financial instability and management issues for years, which has contributed to the erosion of trust in the public broadcaster.

“OUTA firmly believes it is very important to have a National broadcaster because the SABC reaches individuals who don’t necessarily have access to other ways of receiving information. The only way it can be effective is if the SABC is financially independent and maintains its editorial integrity,” said OUTA’s Senior Legal Project Manager, Andrea Van Heerden.

In a submission to the Department of Communications and Digital Technologies on the SABC Bill, Heerden stated that one of the most critical areas where the SABC’s model has failed has been the right funding model.

“Looking at the current funding model, only 3% of the revenue/funds generated comes directly from the Fiscus, 16% comes from TV license fees and 80% is entirely dependent on advertising. So, there needs to be a complete overall of this funding model for the National Broadcaster to be a success,” said Heerden.

Heerden stressed that the new Bill does not propose a funding model; it merely states that once the Bill is accepted, the government has three years to come up with a framework, but Heerden raised concern that SABC will not survive waiting that long as they are already in deep financial trouble.

SABC tabled its 2022/23 Annual Report in Parliament, showing a loss of R1.13 billion for the year.

According to OUTA, it is important for the public broadcaster to be regularly funded through the Fiscus/ tax people pay. They also reiterated that serious thought should be given to paying an annual grant from the fiscus to the SABC, as the reliance on collecting TV license fees has been inadequate.

“A new funding model is seriously needed, where we can look at cutting costs on outdated programmes and funnel that money to fund this important entity, for example, the national and provincial legislatures could provide some funding in the furtherance of democracy,” Heerden added.

Due to the new SABC bill failing to ensure an immediate funding model for the public broadcaster, OUTA therefore urged the committee to refer this Bill back to the Department of Communication and Digital Technologies and requested that the committee refuse to accept the SABC Bill 2023 and to insist that it be withdrawn and resubmitted after the substantial amendments have been affected in line with the finalised White Paper on Audio and Audiovisual Content Services.

LISTEN to the full interview with Ml. Junaid Kharsany and OUTA’s Senior Legal Project Manager, Andrea Van Heerden here.