TV licence for phones: SABC boss wants to recoup huge losses by taxing all video devices

The cash-strapped SABC wants people to pay an additional tax for viewing its channels on their cellphones and computers.

The shock proposal was made by acting CEO James Aguma in parliament yesterday while he was briefing the portfolio committee on communications on the corporation's plans for the 2017-2018 financial year.

Telecommunications experts say the broadcaster should instead tighten its TV licence-collection system.

Aguma proposed that the Broadcasting Act be amended to extend the range of viewing devices that must be licensed. He wants people to be forced to pay for a licence if they watch TV on a cellphone, tablet or computer.

The broadcaster is scrambling to find new sources of revenue as its audience plummets, repelling advertisers who previously spent hundreds of millions of rands.

Its commercial television and radio stations are also losing audiences.

Aguma acknowledged that the 90% local content policy unilaterally implemented by former chief operations officer Hlaudi Motsoeneng last year had cost the SABC dearly.

The big losers, he said, were commercial and flagship radio stations Metro FM, 5FM and GoodH ope FM, and television channel SABC 3. All were hit by a decline in audience.

"The 90/10 local music quotas ... had an impact of R29-million on radio and R183-million on television," said Aguma. The figures are provisional and the amounts could be higher.

Febe Potgieter-Gqubule, a member of the SABC interim board of directors, said the board wanted Aguma and his team to present a strategy to reverse the losses stemming from the 90/10 local-content policy.

Reacting to the broadcaster's plan for TV licence fees to be extended to all electronic devices, William Bird of Media Monitoring Africa said: "I'm not sure it is the best idea at this time. They should look at tightening their licence collection systems. They should be looking at alternative funding mechanisms. They need to get out of this mess."

Telecommunications expert Dominic Cull said: "There is already resistance to paying TV licences. They need a proposal on how to do this. They need to set out a motivation and rationale on why people should pay licences on their cellphones. At this stage it is not realistic."

DA MP and spokesman on communications Phumzile van Damme said the party will wait for the amendment to the act to be tabled.

"In principle we do not support additional taxes to the already overburdened taxpayer. The SABC needs to investigate innovative means of funding," Van Damme said.

During the briefing MPs heard that the SABC's interim board has withdrawn a decision by previous non-executive directors to appeal the public protector's damning 2014 report on governance lapses at the broadcaster, which led to Motsoeneng's fall from grace.

Interim SABC board chairman Khanyisile Kweyama told MPs a decision had been taken not to proceed with cases that did not add value to the public broadcaster.

The board would engage with the public protector on any concerns regarding the report, she said.

The ANC's Nokuzola Tolashe told the committee that her recent visit to the SABC's Auckland Park offices revealed a troubled organisation.

"I saw more of a military base than a national key point," said Tolashe.

Legislators said Aguma should resign because of his role in the financial crisis plaguing the SABC. - Additional reporting by Bekezela Phakathi