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Citizen reporter
General views of the SABC building in Auckland Park, Johannesburg, on November 18, 2020. Image: Michel Bega
The SABC will make a formal announcement for the date of the public auction.
The South African Broadcasting Corporation (SABC) is seeking to divest nonessential assets amid the slow downsizing of at least 400 employees who had been laid off in a cost-cutting exercise.
SABC announced on Friday that it will issue termination notices of the leases for its secondary properties, effective December 1, 2020, following an extensive process in line with Section 54 (2) (d) of the Management Act. of Public Finance (PFMA). .
The public broadcaster confirmed that the non-essential assets include residential properties that were being leased to employees and non-employees of SABC.
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The corporation said it would hold a public auction – the date will be announced soon – to ensure a fair and transparent process.
“Therefore, the SABC will not be able to offer the right of first refusal to current tenants, as the property purchase process will be open to the public. This decision is part of the recommendations of the process undertaken online with the PFMA.
“In an effort to accommodate tenants, since the holiday season is upon us, the corporation also deemed it appropriate to extend the termination notice period beyond that of the leases. In addition, the tenants will receive all the necessary support during this time. “
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SABC Chief Financial Officer (CFO) Yolande van Biljon stressed that the sale of non-core assets would help the corporation inject much-needed cash.
“The disposal of non-core assets is part of the organization’s restructuring strategy and target operating model, to ensure that the company invests in relevant assets that are aligned and focused on the core business of the public issuer. And for SABC to be and remain financially sustainable, a cash injection is needed, ”he said.
Meanwhile, following the suspension of the downsizing process, the communications and labor departments must raise at least R1.4 billion to keep the SABC operational while exploring a way to avoid downsizing.
It was proposed that the communications and labor departments should contribute R700 million each to rescue SABC. The work would use funds from the Unemployment Insurance Fund (UIF) and the two departments would contribute the remaining amount.
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