The Department of Communications (DOC) and Sentech remain mum on the details of a task team report on the fate on the signal broadcaster and its management team.
Following yesterday's release of information by the Business Report on the contents of the task team report, government has declined to comment.
The Business Report states the task team has recommended the entire Sentech board, including its chief executive Sebiletso Mokone-Matabane, be fired. The article also states that the task team has slated Sentech's financial performance and the board's decision to approve salary increases for executives.
Sentech declined to respond to ITWeb's questions, saying it has received a directive from the office of the minister and that all questions on the task team report should be forwarded to the DOC.
The department has also refused to comment, saying only that it is planning a media briefing where the task team's report will be discussed.
Last year, communications minister Siphiwe Nyanda appointed a team of industry experts and labour representatives to investigate Sentech's operations. The 12-member team was supposed to undertake a full business review of Sentech's business and advise the minister on possible interventions required to sustain Sentech's business, based on its mandate and government's expectations.
Finding funding
The task team is also expected to review and advise on a funding model for the state-owned entity, which has struggled to raise funding for key projects.
According to the Business Report, the signal distributor is budgeting for a net loss of R123 million for the 2009/10 financial year as a result of discontinued retail offerings.
It is also reported that the company's loss could increase to R214 million if losses of R91 million by retail broadband services MyWireless, BizNet and Vsat are included.
In its 2009 annual report, the state-owned entity revealed it is running at a loss. It turned over R766.7 million in the year to March, an improvement on its R724 million revenue the year before.
The bulk of the company's revenue, at 54%, is earned from services it provides to the South African Broadcasting Corporation. However, the company widened its loss to R20.9 million, from R7.3 million in the previous year.
Recommendations are also expected to be made on any policy matters hindering Sentech's business growth and sustainability, and ways to ensure the company complies with financial standards set out in legislations.
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