STAATSKOERANT, 24 JANUARIE 2014
No. 37261
In its application for a Government Guarantee in 2009, the SABC highlighted the need for
any policy review process to review the funding mechanisms in place for the public
broadcaster. It specifically highlighted challenges in relation to the licence fee system.
8.7.4
Structure of the SABC
The section on funding has highlighted the need to review the structure of the SABC along
with a review of the entire funding model for public broadcasting. The introduction of DTT
and the increased number of television channels also requires the policy to consider whether
or not these will be divided along public and public commercial lines as previously and if so,
how such a division will be effected.
As noted previously, it is difficult to assess the effectiveness of the division on the funding
model of the SABC as the broadcaster has not produced audited separate accounts for the
two wings as required by law. It is thus not possible to for example, assess the extent to
which the three commercial radio services, have cross subsidised public interest content
provided across the public radio stations.
8.7.5
Governance of the Public Broadcaster
Major issues regarding governance at the SABC have been raised recently. One of the core
issues raised in parliamentary and other forums relating to this have been about poor
governance. Parliament has raised concerns about the lack of accountability of the SABC,
and has considered evidence in audit and other reports of poor financial and other
management controls.
A key underlying issue raised by government, parliament and members of the public has
been an apparent failure to effectively hold the SABC to account. Parliament has raised the
need to clarify accountability mechanisms in the law to make clear, for example, the lines of
accountability between the SABC and the Minister as shareholder on behalf of government,
ICASA and Parliament. The Broadcasting Act together with the Public Finance Management
Act, no 1 of 2000, sets out the following reporting lines in relation to the SABC:
Parliament
Government
ICASA
8.7.6
Appointment and Constitution of the Board
The Board of the SABC is made up of 12 non-executive members and three executive
members (the Group Chief Executive Officer, the Chief Operating Officer and the Chief
Financial Officer).
The Broadcasting Act states that the Board controls the affairs of the Corporation and that
the executive committee (made up of the three executive directors and no more than 11
members) administer the affairs of the Board. The executive committee is directed by the
Board. The Board is the accounting authority in terms of the PFMA and as such bears
overall responsibility for ensuring sound financial management.
The appointment of executive members of the Board is outlined in the memorandum and
articles of association. The appointment process of non-executive members of the Board is
managed by Parliament.
The Act also sets out the processes to be followed to remove non-executive members of the
Board or dissolve the entire governing body. In the event of the dissolution of the Board, the
Act states that Parliament can recommend the appointment of an Interim Board made up of
five non-executive members for a term of no more than six months.
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