Question NW4089 to the Minister of Communications and Digital Technologies
08 January 2024 - NW4089
Bodlani, Ms T to ask the Minister of Communications and Digital Technologies
(a) How has the R745 million debt that is owed to Sentech by the SA Broadcasting Corporation (SABC) for signal distribution impacted Sentech’s operations, (b) how did the debt impact the long-awaited transition from analogue to digital signal distribution, (c) what interventions did the department make to mitigate the impact of the SABC’s debt to Sentech and (d) how will the SABC finance (i) its debt to Sentech and (ii) future distribution costs? W5370E
Reply:
(a) & (b) The non-payment of the debt has impacted negatively on Sentech’s cashflow which in turn affects the company’s ability to fulfil its commitments in relation to CAPEX and operational working capital initiatives and maintenance plans.
(c) The DCDT advised the two entities to work together outside third parties to find a workable solution to resolve the signal tariff dispute. The two Boards committed to working together to find a solution and as such a joint committee of the Boards and Executives from both companies was established. The Department is still awaiting the report on the outcome of this committee. The two entities were also advised to enter a debt repayment plan whilst finding a workable solution for the tariff dispute. This was to ensure that the SABC makes monthly payments to minimise the impact of non-payment on Sentech. A debt repayment plan has since been entered.
(d)(i)(ii) The SABC is required to finance its debt obligations including that of Sentech through normal revenue sources so that it can meet all its debt obligations. The SABC is in the process of exploring alternative revenue sources that are set to increase its revenue generation base in the immediate term and a new Strategy has also been developed to improve revenue generation. In addition, in the medium to long-term, in anticipation of the SABC Bill being processed by Parliament, the Department will be reviewing the funding model of the public broadcaster. The funding of signal distribution costs, particularly for public broadcasting service platforms will be considered as part of the review process of SABC’s funding model.
Thank You.