State-owned signal distributor Sentech will not switch-off SABC radio and television services for roughly three million South Africans, says the communications ministry.
Sentech is at odds with the public broadcaster over non-payment of services, a situation that saw communications minister Solly Malatsi intervene to find an amicable solution.
Unresolved, the situation would have left “many poor South Africans”, mostly in rural areas and small towns, shut off from the world, according to the Department of Communications and Digital Technologies (DCDT).
In a statement, the DCDT says Malatsi convened a meeting between the SABC and Sentech’s leadership, to find a solution to ensure millions of South Africans are not cut off from the broadcaster’s services.
In terms of the agreement, the signal distributor will not switch off the public broadcaster for at least the next two months, while the leadership explores options for a long-term sustainability model for the SABC.
Says Malatsi: “These options include National Treasury’s decision on the application by the SABC to reclassify its grant, which would allow for part of its allocation to be used to pay Sentech for signal distribution services.
“While the SABC has been making steady progress towards improving its financial standing, the fact is that it has not been able to fully pay Sentech for services rendered. At the same time, Sentech is at risk of running out of cash due to the non-payment, a risk that may even affect other broadcasters.
“As we grapple with the complexities of developing a long-term funding model for the SABC, the public broadcaster also has a responsibility to raise revenue to maintain its operational costs.
“I am determined to prioritise the development and finalisation of the financial model for the SABC to ensure it becomes sustainable, able to pay its creditors and deliver on its core function.”
This latest move comes as Malatsi vowed to fix squabbles between some of the entities reporting to his department, restore governance and ensure there are permanent executives in charge.
Within the DCDT portfolio are 11 state-owned enterprises: Broadband Infraco, Film and Publications Board, Independent Communications Authority of SA, NEMISA, Postbank, SABC, SA Post Office, Sentech, State IT Agency, Universal Service and Access Agency of SA, and .ZA Domain Name Authority.
Share