SABC funding
The government’s failure to establish a funding model for the financially insolvent SABC to carry out its public service mandate has prompted the public broadcaster to craft a five-year corporate plan that relies on its own revenue-generating activities.
The plan is an ambitious, risky and seemingly improbable one which, if successful, would address what has brought the SABC to near financial collapse over many years: the funding of about R2bn a year of its public service mandate, which is to inform, educate and entertain the citizenry as required of public broadcasters worldwide.
The government’s failure to address the issue was evident in the SABC Bill, which was before parliament last year and has now been left to the next administration to deal with.
The bill mandates the minister to develop a funding model framework within three years, ensuring that the majority of the SABC’s funding is derived from state-based funding mechanisms.
Admittedly, the fiscus is under pressure due to mounting bailout demands from financially distressed state-owned enterprises that are critical to the functioning of the economy.
However, there is a valid argument to be made about whether the funding of the SABC should be viewed as ongoing financial support necessary for a vital agency to fulfil its societal role, rather than a one-off bailout.
Any funding solution would have to address the chronic nonpayment of television licences, which amounted to a staggering R44.2bn including penalties by mid-2023. This is indicative of a pervasive culture of nonpayment.