Former SABC CEO paid R2.1 million for three months work

The SABC’s latest annual report revealed that the state broadcaster paid its directors R18 million in the 2024 financial year.

The state broadcaster’s finances are in dismal shape. Although it generated R4.98 billion in revenue, its expenses outweighed its income.

This resulted in the SABC reporting a loss of R198 million for the year and a total comprehensive loss of R1.06 billion.

The continued losses took its toll on the state broadcaster, which became technically insolvent over the last financial year.

It reported assets of R4.09 billion and liabilities of R4.12 billion, leaving it with negative equity of R37 million.

Negative equity means the company is technically insolvent and cannot settle all its liabilities if all its assets are liquidated.

The SABC said it ‘remains materially uncertain’ whether it will be able to meet its obligations in the next twelve months.

It will require implementing severe austerity measures, including suspending more than 80% of the long-term capital plan and limiting content investment.

“It must be noted that virtually no funding is currently available for any capital investment in innovation, infrastructure and technology,” the SABC said.

Despite the SABC’s worrisome financial position, it has continued to compensate its employees and directors handsomely.

The SABC’s latest annual report revealed that the SABC has 2,234 employees, who earned an average of R653,900 each over the last financial year.

The 11 top management employees earned an average of R2.9 million annually, while those in senior management earned R1.6 million.

The SABC’s 239 middle managers took home an average of R1.1 million over the last financial year.

The state broadcaster spent R1.46 billion on its 2,234 employees, making them some of the highest-paid people in South Africa.

The SABC’s directors were equally well-paid, with sixteen directors earning a combined R18 million over the last year.

Former SABC group chief executive officer Madoda Mxakwe was paid R2.1 million for three months of work.

Mxakwe’s five-year tenure as chief executive ended on 30 June 2023, three months into the financial year.

He was the first SABC group chief executive officer to complete his contract at the state broadcaster in over 15 years.

SABC CFO Yolande van Biljon received R3.5 million over the last year, and COO Ian Plaatjies was paid R3.4 million.

SABC chairperson Khathutshelo Ramukumba received R1.1 million, while the other non-executive directors received between R552,000 and R951,000.

The table below shows the compensation for the SABC directors and key management personnel in the 2024 financial year.