PowerFM boss denies rumours

Radio boss Given Mkhari spent most of the week putting out fires about a rumoured sale of his new radio station, PowerFM. "It's absolute bulls**t. We are not for sale," he said on Friday.

Mkhari, who first denied talk of a sale on Monday, dismissed further claims on Friday that the station was battling financially and had defaulted on its loan repayments to the National Empowerment Fund.

He put the claims down to malicious gossip.

"It is understandable that if you're punching above your weight, some people are not going to take it lying down," said Mkhari. He also denied he had been in talks with any prospective buyer.

Fund spokesman Moemise Motsepe said: "PowerFM was a model investment that was doing well.

"PowerFM has not defaulted on their funding obligations in the financial year ending February 2014. They exceeded their 12-month revenue targets by 120% in eight months and are on track with regard to their funding obligations," said Motsepe.

PowerFM was launched at a cost of R90-million in June last year and had a R68-million start-up loan from the fund and the Industrial Development Corporation. But the station, which will celebrate its first birthday on Wednesday, has not been without drama.

Former insiders claimed this week that it had poor listenership figures.

In addition, a high staff turnover and the loss of big names - among them presenters Chris Vick, Siki Mgabadeli, Lerato Mbele, Asanda Magaqa and station manager Ferdinand Mabalane - also suggest there may be trouble at the station.

The resignation of more than 20 staff members has been linked to low morale and contract issues.

But Mkhari defended his company, MSG, which owns the station, saying "90% of the team that joined us from the onset are still here".