Government has approved a bank guarantee of R1.473 billion for the South African Broadcasting Corporation (SABC), according to communications minister, Siphiwe Nyanda.
A statement by the National Treasury says the guarantee, signed off by finance minister Pravin Gordhan, will be released in tranches, with a draw-down of R1 billion made available immediately.
Nyanda adds that government will use tight control measures, including regular management reports, to ensure the money is used to settle the public broadcaster's urgent outstanding financial obligations.
The release of the remaining R473 million will be subject to the development of a detailed project plan by the SABC, in which it will have to commit to clear revenue targets and cost-cutting measures, says the department.
According to Nyanda, the intervention by government will help stabilise the ailing public broadcaster, which has battled rising anxiety and uncertainty among staff and the general public.
“We hope the financial injection by government will help the SABC meet its urgent needs such as payment of outstanding debts and other matters of priority”, he said.
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