News South Africa

Harsh cost-cutting measures at SABC

Xolani Mbanjwa|Published

The interim SABC board has introduced harsh cost-cutting measures, including executives losing lucrative perks, a ban on business class travel, ending satellite TV subscriptions and other entertainment perks for directors, and putting a stop to conferences.

This is according to the board's chairwoman, Irene Charnley, who has warned the broadcaster's managers to heed the call or face "serious consequences".

She was addressing the the National Press Club in Pretoria on Tuesday.

The public broadcaster - which is in the red to the tune of R800-million - is also considering shutting down some of its international bureaux as it weighs the cost of running them.

Charnley was accompanied by acting group chief executive Gab Mampone and fellow board members Libby Lloyd and Suzanne Vos.

General staff and executive managers will now use economy class when flying locally and abroad, while international trips by more than two people would have to be personally approved by Mampone.

Charnley said more cost-cutting measures would be introduced later in an attempt to make the broadcaster financially "viable".

"The public is aware of the financial and leadership crisis that the public broadcaster has faced and we should focus on these issues. The first thing is to stabilise the SABC by ensuring that we comply with legislation, address operational issues and ensure that the SABC does not continue to run at a loss," said Charnley.

She said they would lead by example by introducing the cost-cutting measures within the board.

Board members will no longer be provided with entertainment home equipment such as DStv subscriptions, televisions and DVD players.

They will only be allowed one cellphone, one laptop and a 3G card for Internet access each.

"With immediate effect we will stop all conferences, seminars and entertainment.

"Most of those benefits and perks are more at a senior level. If staff are contractually entitled to something, we won't take that away."

She warned managers against defying her cost-cutting orders.

"Failure to adhere to these processes and policies will result in serious consequences. If it is not implemented there has to be consequences. We cannot accept a situation where we just ignore the policies and procedures we have introduced," said Charnley.

"The message that we want to get across is that it can't be business as usual at the SABC. For us to emerge from the financial crisis, all the individuals and management must cut down on all non-essential expenses. People who deviate from these measures will be dealt with accordingly."

The SABC board wants everyone who might have been involved in fraud and corruption to pay the full price by "ending up in jail".

Charnley said Auditor-General Terrence Nombembe was conducting an audit of the broadcaster's financial affairs to uncover possible fraud or corruption that might have taken place.

The board was also in talks with unions about their threat to strike.

Unions were considering a 10 percent wage increase offer and were to meet the board today.

Lloyd said the board was in talks with independent producers who were owed an estimated R60m.

"This is ongoing interaction. We have held a meeting with the Television Emergency Coalition (independent producers) and we have told them that we (the SABC) know we owe them money," said Lloyd.

Charnley said: "We are committed to ensuring that the SABC becomes more efficient and delivers on local and international content. We will not compromise on meeting our legislative mandate."

- TV licence fees will increase 11 percent, the SABC has said. The increase, effective from last Saturday, was approved by Communications Minister Siphiwe Nyanda.

"The annual fee for a domestic, business, dealer and lessor licence will increase by R25 - from R225 to R250. Concessionary TV licences, granted to those over 70 years and receivers of social grants, will be increased by 8 percent - from R65 to R70 per annum."