The turnaround plan: Cash-strapped SABC considers public auction of ‘non-core assets’ amid staff retrenchment
By Mcebo Makhaye
The embattled South African Broadcasting Corporation (SABC) is considering the selling of non-core properties via a public auction, the public broadcaster announce on Friday morning.
This comes three days after SABC said it would be extending the suspension of a retrenchment process to end of December, as it attempts to find a way forward to the impasse between the management and workers.
In a statement, the SABC’s Chief Financial Officer, Yolande van Biljon said that the disposal of non-core assets had been in the pipeline as part of the public broadcaster’s turnaround plan.
“The selling of non-core assets will also assist in the much-needed cash injection, required for the SABC to become and remain financially suitable,” van Biljon said.
In the past years, the SABC had been heavily suffering financially ranging from declining ad revenues to low rates of license payments, which was worsened by mismanagement and corruption according to critics.
The SABC said: “In order to ensure a fair and transparent process of the disposal of its non-core residential assets, the public broadcaster will hold a public auction,” the statement reads.
“The SABC will therefore not be able to offer right of first refusal to current tenants, as the process to purchase the properties will be open to the public. This decision is part of the recommendations of the process undertaken in line with the PMFA,” the statement added.
However, the cash-strapped broadcaster did not make it clear when the auction would take place. Also, the SABC did not divulge which properties would be impacted or how employees may be affected.
Not so long ago, SABC staff embarked on a strike after 400 employees received notices of potential job cuts. As a result, the decision was met with fierce resistance from labour unions and affiliated movement, with threats of a broadcast blackout.
Meanwhile, the broadcaster has said that it would start issuing termination notices from next month.
Compiled by Mcebo Makhaye.
