Place SABC under extension and don’t extend R1.5bn guarantee‚ says DA

10 July 2016 - 14:44 By TMG Digital

The Democratic Alliance has called on Finance Minister Pravin Gordhan and the National Treasury not to extend a R1.5 billion guarantee to the SABC‚ but instead place the public broadcaster under administration. DA spokesperson on communications Phumzile Van Damme said on Sunday that reports that the SABC's finances had deteriorated so badly it would be forced to approach the banks for a loan with a National Treasury guarantee‚ should ring serious alarm bells for Gordhan. “The SABC should not need bailing out - it could be profitable‚ like many broadcasters in South Africa are‚ if run properly‚” Van Damme said. She said it was clear that under the tenure of chief operating officer Hlaudi Motsoeneng‚ CFO and Acting CEO James Aguma and Communications Minister Faith Muthambi‚ the SABC was being run into the ground. “Motsoeneng even overruled the decision by a review panel and awarded a R167 million contract to President Jacob Zuma’s daughter‚ Gugu Zuma-Ncube‚” Van Damme asserted. Instead of being managed as a national asset‚ with careful consideration of the public finances required to prop up the SABC‚ the public broadcaster was being run as a tool for political patronage for the ANC and its mouthpiece‚ she added. “It is time for National Treasury to take the reins‚ arrest any further drains on the fiscus and find practical solutions to stabilise the SABC’s financial position. “We trust that Minister Gordhan will do what is best for the SABC‚ and for South Africa‚ and not the ANC in this instance‚” Van Damme stated

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