The cash-strapped SABC has achieved its first unqualified audit opinion in 14 years.
On Sunday, the public broadcaster, which over the years has been rocked by a cash-flow crisis and has relied heavily on government bailouts to keep operating, said for the first time since the 2009/2010 financial period, “the corporation has obtained an unqualified audit opinion”.
The SABC, which is owed more than R40bn in TV licence fees, said its 2023/24 annual report had been tabled in parliament.
The unqualified audit opinion was made possible by the “focused attention to financial discipline and to institutionalising good governance throughout the corporation”, it said.
“I am proud that the SABC has achieved another significant milestone on our journey of recovery, renewal and growth,” SABC group CEO Nomsa Chabeli said.
“Our unqualified audit opinion follows on a number of recent achievements including our much-lauded election coverage, the relaunch and rapid audience growth of our SABC+ streaming platform as well as our content partnerships with leading global and local media houses.”
The broadcaster was allocated R3.2bn in 2019 to fund initiatives outlined in its approved turnaround plan aimed at transforming its financial sustainability.
In September 2023, the communications & digital technologies department announced the government would provide further support, saying the broadcaster needed to remain afloat ahead of the May general elections.
However, the department told parliament in November 2023 that the National Treasury had rejected the SABC’s request for R1.5bn, which it had expected to be announced during the medium-term budget policy statement. Part of the funds would have assisted with the coverage of the elections.
On Sunday, the broadcaster said during the 2023/24 financial year it registered a 7% increase in advertising revenue compared with the previous year; a decrease of 4% in total operating expenses and a decrease of 77% in the loss before interest and tax of R192m “from R827m in the previous year”.
It said the cost of the unfunded public interest mandate was about R834m. “Securing government funding for this mandate remains an important priority for the SABC and is an important priority area in the SABC Bill currently under review.”
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.