President Ramaphosa Urges Government Departments to Settle TV Licence Debts

In a move to safeguard the financial health of the South African Broadcasting Corporation (SABC), President Cyril Ramaphosa has mandated all government departments with unsettled TV licence bills to clear their debts promptly. The national broadcaster is currently short of nearly R35 million in payments due from various levels of government.

Vincent Magwenya, spokesperson for The Presidency, echoed the urgency of this directive in a recent dialogue with SABC News. He stressed the significance of the SABC in South African democracy and the pressing need for it to be adequately funded to fulfil its constitutional mandate.

President Ramaphosa's insistence on compliance was mirrored by the Minister of Communications and Digital Technologies, Solly Malatsi. The latter called out the unacceptable trend of non-payment and underlined the government's role as a standard setter in society, including adhering to legal and financial obligations.

This spotlight on accountability arrives following Minister Malatsi's appeal to Deputy President Paul Mashatile to address the lack of payment by government entities. Bringing these departments into compliance is not merely a legal matter but is also seen as crucial to easing the SABC's financial burden.

The SABC's reliance on TV licence fees as a key revenue source—contrasted by avoidance rates and the substantial debt from the government—poses a serious challenge to the organization's economic sustainability. The organisation's finances have shown improvement, evidenced by a decrease in loss before interest and tax in the recent fiscal year, yet the avoidance problem persists.

The Portfolio Committee on Communications and Digital Technologies in Parliament has recognized improvements made by the SABC. Still, it emphasizes the need for revisions in the public broadcaster's funding model. Committee chair Khusela Sangoni advocates for alternative funding mechanisms and awaits the broadcaster's proposals.

As the government takes steps to lead by example and the SABC seeks to remedy its financial operations, the future of public broadcasting in South Africa hinges on the convergence of fiscal responsibility and innovative funding strategies.