Bankrupt SABC pays executives R12 million in salaries

The South African Broadcasting Corporation (SABC) is paying its top executives exorbitant salaries, while the company struggles with bankruptcy.

The SABC revealed its executive remuneration packages to parliament on Thursday. Communications Minister Nomvula Mokonyane erroneously boasted that the company’s current executives were earning significantly less ‘than their predecessors’.

SABC tries to sugarcoat salary disclosure

According to the Democratic Alliance’s (DA) Shadow Minister of Communications, Phumzile Van Damme, this is a blatant lie and a slap in the face of South African taxpayers who have had to foot the bill for recurring government bailouts.

The SABC is bankrupt and is unable to repay its debt to service providers and government. Yet, not only does the broadcaster still remain operational – it also pays exorbitant salaries to its top brass.

During her parliamentary address, Mokonyane announced that the current Group Chief Executive Officer (CEO) earns a remuneration package of R5.1 million; the Chief Operations Officer (COO) earns a total of R4 million and the Chief Financial Officer (CFO), an amount of R3 million.

Van Damme has rubbished claims of a significant decrease in executive salaries, saying:

“The total remuneration for executive packages stands at R12.1 million.

This is but a marginal R1.2 million decrease compared to the highly inflated R13.3 million paid to top management last financial year, largely as a result of huge yearly increases during the Hlaudi Motsoeneng era.

The SABC was therefore misleading the public when they indicated that the salaries of “the executive management have been significantly reduced”.”

SABC ‘turn-around’ strategy

Despite complete financial collapse, the SABC will be embarking on a ‘regeneration’ strategy, which is aimed at cutting company costs, and is spearheaded by a ‘Turn-Around Task-Team’ that includes the board of the SABC, Treasury and the Department of Communications.

Mokonyane confirmed that she, along with the SABC board, would be meeting with Finance Minister Tito Mboweni to discuss the way forward for the embattled state owned broadcaster, saying:

“Minister of Finance, Tito Mboweni, has agreed to meet and engage on the state of the SABC and the turnaround plan within the next three weeks to find solutions to the current financial challenges confronting the SABC.”