South Africa’s public broadcaster, the SABC has confirmed that it has received the last instalment of a R3.2 bailout amounting to R1.1 billion.
This payment comes after the National Treasury informed the SABC Board that it would get the bailout in phases – provided that it meets certain conditions as part of its turnaround strategy. This final payment means that the public broadcaster has met all those conditions.
The conditions included reviewing broadcasting sector policies to respond to advances in technology, costing the developmental mandate and evaluating opportunities for private-sector participation.
According to an article by Mybroadband, an SABC Spokesperson said that the money received will be used in key priorities such as paying the SABC’s creditors, Investment in content acquisition and maintenance of the SABC’s infrastructure and critical broadcast equipment.
The state broadcaster has been facing financial difficulties for a long time now just like the now almost defunct South African Airways. The financial difficulties got to a point where the company’s 2019 financial statement showed insolvency.
Just like many other companies, the Coronavirus pandemic will also cause some operational problems for SABC and this has negative implications as it may reduce revenue stream.