The SABC Annual Report for 2023/2024 reveals that the ongoing economic downturn has significantly hindered TV licence collections, with many households struggling to pay due to reduced disposable income, Cape {town} Etc reports.
Also read: Agriculture department to conduct inspections of Terbufos manufacturers
The report shows that by the end of the fiscal year, 2.1 million (19.02%) accounts were paid, comprising 79% of household licences, 20% of concessionary licences, and 1% of business licences.
The SABC TV Licence has seen a near 20% rise in non-payment over the past six years, prompting former Communications Minister Mondli Gungubele to introduce the SABC Bill in October 2023 to replace the outdated Broadcasting Act and create new revenue streams.
However, according to a media statement, the bill was withdrawn by Minister Solly Malatsi, who is now working on a new funding model.
‘Following extensive stakeholder consultation and a thorough review of public submissions, it is clear that the SABC Bill, as it stands does not serve the long-term interests of the SABC or the South African public,’ said Malatsi.
Malatsi argues that the SABC Bill’s delayed funding model, which gives the Minister three years to develop a sustainable framework, fails to address the broadcaster’s urgent financial challenges.
‘This approach does not meet the urgency required to stabilise the broadcaster and risks perpetuating an outdated licensing structure that will not provide the SABC with the necessary resources to fulfil its mandate.
‘The Bill would also grant the Minister of Communications additional powers, including influence over board appointments, which risks eroding the broadcaster’s independence at a time when media freedom is more crucial than ever,’ said Malatsi.
Malatsi believes that instead of amending the Bill, the focus should be on urgently developing and implementing a sustainable financial model for the SABC.
One proposal is a household levy, though there’s disagreement over its collection.
This levy had previously been proposed in 2021 in discussions of revamping broadcasting policies. It would be calculated based on the practical ability of South Africans to access public broadcast content.
In August, SABC disclosed that 81.7% of TV licence holders failed to remit their annual fees for the 2021/22 fiscal year.
This resulted in a mere R815 million contribution towards the total TV licence bill of R4.45 billion.
The suggestion of implementing a household levy was met with resistance from committee members who argued that South Africans were already grappling with the increasing cost of living.
Additionally, suggestions include involving the South African Revenue Service (SARS) or DStv owner MultiChoice, but MultiChoice has opposed this.
Another option is to impose local content requirements on streaming platforms, with non-compliant operators contributing to a fund to support local content and the SABC’s public mandate.
Malatsi has received backlash for his decision.
In a parliamentary press release, the Chairperson of the Portfolio Committee on Communications, Ms. Khusela Sangoni Diko, expressed concern over Minister Solly Malatsi’s decision to withdraw the SABC Bill from Parliament.
‘The challenges facing the SABC require a considered and urgent response, not trigger-happy action, which serves no purpose but to frustrate and disrupt processes already underway.
To withdraw the Bill at this stage means to delay the implementation of crucial reforms necessary to save yet another crucial and strategic public institution,’ said the statement.
Diko said that while respecting the Minster’s decision to withdraw the bill was ill-advised and “would sound the death knell for the SABC.”
In a briefing to the parliamentary communications committee, Minister Malatsi stated that his department will first finalise the audio and audiovisual content services (AAVCS) policy framework before setting a new timeline for resolving the SABC’s funding model.
He was given until the end of the 2024 financial year to submit an alternative to the SABC Bill.
Also read:
Security guards shot while escorting garbage collectors in Cape Town
Picture: SABC / Facebook
