The SABC for many years has been facing financial difficulties and has since been isuing redundancy letters to reduce staff. On Friday the broadcaster released a statemt saying that it will issue notices of termination of lease agreements for its non-core properties and will sell these at an upcoming public auction.
These assets are to be auctioned off to generate some revenue to cover some expenses.These assets include residential properties which are being leased to both SABC employees and non-employees. Termination notices will be goven to people as of 1 December.
“This decision is part of the recommendations of the process undertaken in line with the Public Finance Management Act,” The SABC said.
“In an effort to accommodate the tenants, given that the festive season is upon us, the corporation also deemed it appropriate to extend the termination notice period beyond that of the lease agreements. Tenants will further be given all the relevant support during this time,” the SABC statement read .
The public broadcaster has projected a budget shortfall of R1.5 billion due to a massive drop in advertising revenue as a result of the devastation economic impact of Covid-19.To continue its ininterrrupted operations,the SABC is required to make a R700 million cut in staff costs as part of its turnaround strategy approved by National Treasury. If the retrenchments processis to be be halted, the R700 million will have to come from National Treasury.It is also shown that the SABC is spending millions on snacks for meetings while faced with financial anxiety.
Minister Stella Ndabeni-Abrahams(Minister of Communications, Telecommunications and Postal Services) cannot interfear or intervene in the processes as the law is clear saying that, the board has the final authority on matters related to the public broadcaster.