SABC pays back R416 million of R1 billion loan

The SABC has paid back part of a R1 billion Nedbank "government gauranteed loan".

On Thursday, R416 million was paid to the bank, SABC spokesman Kaizer Kganyago said in a statement.

The broadcaster obtained the loan in December 2009, when it was experiencing cash-flow problems.

"The first capital payment was only due in January 2012 and since then the SABC has paid back the capital at regular intervals as per the agreement," said Kganyago.

"To date, R778 million of the loan capital has been paid back, and an amount of R210 million in interest charges."

The payment on Thursday accelerated the payments due by 14 months.

"The next instalment is now due in April 2014," he said.

SABC board chairman Ben Ngubane said he was pleased with the performance of the corporation in the past two years.

"It is through the turn-around strategy and different initiatives instituted internally, that we were able to start turning the organisation around," he said.

"Our cash-flow position has improved and this was driven by improved working capital management and expense controls".

In October last year, it was reported that the loan was secured for the SABC by Minister of Finance Pravin Gordhan and then minister of communications Siphiwe Nyanda.

The loan agreement was over a period of five years. According to SABC's 2012 annual report, more than R136 million was recorded as wasteful and fruitless expenditure.