On Now
Weekdays 23:00 - 23:59
Overnight Oscar
NEXT: N/A N/A with N/A
Listen Live Streams

National

Cash-strapped #SABC slapped with a disclaimer

───   07:13 Wed, 05 Sep 2018

Cash-strapped #SABC slapped with a disclaimer | News Article

The South African Broadcasting Corporation (SABC) reported a net loss of R622 million for the 2017/18 financial year, compared to R977 million in the previous financial year.


The broadcaster continues to face tough economic challenges with expenses exceeding the revenue generated.

Over and above the challenges faced during the year under review, the Auditor-General issued the SABC with a disclaimed audit opinion mainly attributable to uncertainty regarding its going concern assumptions, property, plant and equipment and irregular expenditure.

The significant liquidity challenges have resulted in the SABC not being able to settle its creditors timeously. The SABC said it had a demanding financial year with cash resources stretched to the maximum to ensure continued business operations. 

Total revenue was R6.6 billion against a budget of R7.3 billion, resulting in a 10 percent under-performance of R709 million. Total expenditure incurred for the 2017/18 financial year amounted to R7.269 billion compared to the budget of R7.279 billion. 

The SABC said the R11 million, or one percent, underspent was mainly owing to the amortisation of content and other expenses.

However, the SABC said all was not lost as year-on-year performance showed an improvement of R56 million, or one percent, driven mainly by commercial revenue and pointing to the review of its editorial policies and progress on clearing previous internal and external audit findings.

"The turnaround strategy that was developed subsequent to the financial year-end is designed to ultimately return the corporation to its financial stability," it said in a statement.

"We have developed a robust turnaround strategy which focuses on financial sustainability, restoring the integrity, credibility and culture of excellence in the public broadcaster. We continue on a drive to stabilise the SABC financially, through the reduction of operating costs."


African News Agency (ANA)


@ 2024 OFM - All rights reserved Disclaimer | Privacy Policy | We Use Cookies - OFM is a division of Central Media Group (PTY) LTD.