Turmoil and uncertainty after SABC Bill withdrawn 

IN BRIEF: 

• The Communications Minister’s decision to withdraw the SABC Bill has been met with opposition from inside the Cabinet, who have questioned his authority to do so.
• Some civil society groups have welcomed the decision, while others have raised fears about how it might impact the SABC.
• The SABC received an unqualified audit opinion for the first time in 14 years for its latest annual report, but its finances still portray a gloomy outlook.

IN FULL:

The decision last week by South Africa’s Communications Minister to withdraw the controversial SABC Bill has only led to further instability and consternation over the organisation’s future.  

Speaking to the SABC, the minister, Solly Malatsi, said his decision was based on his belief that, “The bill, as it is, does not answer, in my view, the question around a sustainable funding model that will empower the SABC to be on the path of that financial sustainability that we need.”  

Read more: Bill delayed as SABC threatened with strike 

The SABC bill was introduced in 2023, and was designed to address the structural and financial problems facing the region’s largest public media organisation. But it has faced continual criticism, from political actors as well as civil society groups, over its constitutionality and its failure to adequately meet the broadcaster’s needs.  

But the saga has now been compounded by a political standoff. Malatsi said that as Communications Minister, he had the power to withdraw the bill. This assertion was questioned by others within Cabinet. Khumbodzo Ntshavheni, Minister in the Presidency, said, “It is not a private members’ bill. It is not Mininster Malatsi’s bill. It’s a bill of Cabinet and the executive. So, in terms of the law, he cannot withdraw it without coming to Cabinet to agree for its withdrawal.”  

Ntshavheni’s argument, however, has been disputed by civil society organisations.  

What is the disagreement?  

On 10 November, Malatsi withdrew the SABC Bill, saying it had  fundamental flaws, including that it did not adequately address the SABC’s pressing funding issues. “There is a lot of criticism in terms of the key components of the bill around the risks of editorial independence, around the risk of the appointment of the board. And those things are very important to refine the bill. But most importantly, we need to dedicate our energy towards that key funding model.” 

The decision was welcomed by civil society groups such as the SOS Coalition, who alongside the South African National Editors’ Forum and Media Monitoring Africa, had campaigned for the bill’s demise.  

“Despite financial sustainability challenges, the Corporation executed its mandate diligently and passionately.”- Yolande van Biljon, SABC’s former Chief Financial Officer

Not long after, however, the Communications and Digital Technologies Committee Chairperson, Khusela Diko, warned Malatsi that if he did not reintroduce the bill, they would put it through either as a committee bill, or a private members bill.  

She criticised Malatsi for taking the “easiest” option by quashing the bill, rather than trying to address and reform problems in the existing bill. The committee will address the bill this week.  

Ntshavheni’s intervention only created further confusion. Her assertion that he does not have the authority alone to withdraw the bill, but must instead seek Cabinet approval, has exposed tensions in the country’s first-ever coalition government. Stephen Grootes in the Daily Maverick said it “may mark the beginning of a new phase in the national coalition,” as politicians from both the DA and the ANC try to put their stamp on things.  

Impact for the SABC 

While the political wranglings of the coalition government play out, there is fear that further inaction will lead to greater pressures on the SABC, which remains blighted by households not paying their licence fee – evasion rose to 84 percent this year. Even government departments are culprits, owing the SABC R35 million in 2024.  

According to its latest annual report, the SABC is technically insolvent, facing a loss of R192 million, before interest and tax.  

“SABC’s ability to meet its obligations in the next 12 months remains a material uncertainty and requires the ongoing implementation of severe austerity measures.”  – SABC 

That said, there was positive news in the annual report, with the SABC achieving an unqualified audit opinion for the first time in more than a decade. “Despite financial sustainability challenges, the Corporation executed its mandate diligently and passionately,” said then-Chief Financial Officer, Yolande van Biljon. “Achieving an unqualified opinion, a first in 14 years, reflects the strategic journey the SABC has undertaken to strengthen its internal control environment, its compliance with legislation, expenditure management, governance and oversight.” 

Yet the SABC also noted that its “ability to meet its obligations in the next 12 months remains a material uncertainty and requires the ongoing implementation of severe austerity measures … It must be noted that virtually no funding is currently available for any capital investment in innovation, infrastructure and technology.”  

Van Biljon has since announced she will be leaving the SABC.  

Working out the best way to fund the SABC , should remain a priority, and there are concerns that further legislative dithering and in-fighting risks not addressing the SABC’s serious financial headwinds . “SABC has been very fragile. … Our fear is, how long are you going to delay resolving the SABC’s financial model,” said Matthew Parks, COSATU Parliamentary Coordinator.