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10 March 2009

The Minister of Communications, Dr Ivy Matsepe-Casaburri, has received the final report on the state of affairs at the SABC from Deloitte and Touche.

The department commissioned Deloitte and Touche as part of the ongoing review of corporate governance at State Owned Enterprises (SOEs). This is periodical in all the SOEs. Similar reviews had already being conducted at Sentech, South African Post Office, and the National Electronic Media Institute of South Africa among others.

The objective of these reviews is to assess the adherence to corporate governance protocols and identify best practices with a view of sharing these experiences amongst the SOEs. Considering that the department has just received the report, the Minister is busy studying it with the view to formulating appropriate corrective measures. The preliminary report suggests some short-comings with regard to corporate governance practices among other things which will be discussed with board and management.

Recent events such as court battles and the negative media attention at the public broadcaster, have regrettably had perceived shift of focus from the mandate of the corporation. In formulating corrective measures, Minister will base her recommendations based on the three independent reports, including the Bowman Gilfillan that was commissioned by the SABC as well as a report from a panel of experts commissioned after the Budget Vote speech.

The review will assist us in taking corrective measures to refocus the entity. With regard to the budget deficit, the Department of Communications (DoC) is meeting with the SABC to fully understand the causes of this deficit. The DoC together with the National Treasury will recommend corrective measures.

One of the realities confronting the SABC like any other business is the current economic downturn. The budgetary implications are being closely monitored and together with the National Treasury would recommend appropriate interventions. Whatever interventions, they will be based on the need of public broadcasting, not commercial activities.

The Acting Group Chief Executive Officer of the SABC, Mr Gab Mampone on his recent announcement, stated that the necessary cost cutting measures at the SABC will be made. This is a welcome development.

Enquiries:
Joe Makhafola
Minister of Communications Spokesperson
Tel: 012 427 8010
Cell: 071 290 1735
E-mail joe@doc.gov.za

Issued by: Department of Communications
10 March 2009
Source: Department of Communications (http://www.doc.gov.za)