SABC requests broader concessions from Treasury to implement sections of PFMA

CAPE TOWN - The SABC has requested broader concessions from Treasury so the struggling entity doesn’t have to implement sections of the Public Finance Management Act (PFMA).

The entity said the PFMA, which governs all commercial activity of the state and state-owned enterprises (SOEs), saying it constrains the entity’s ability to be more competitive and protecting intellectual property.

But the public broadcaster has told Parliament’s Standing Committee on Public Accounts (SCOPA) that it’s managed to stabilise over the past year around financial management and governance.

While the SABC said it’s turning the corner financially with the first unqualified audit in a decade, the entity still can’t optimise its commercial activity.

One of the constraints is having to go through an open and transparent process when it buys certain services as required by the PFMA, unlike its private competitors who aren’t governed by the legislation.

SABC head of supply chain, Phumzile Njoko, explained their challenge.

"So, there are certain constraints that we have been experiencing when it comes to the normal PFMA regulations, when it comes to our procurement activities and the regulations that govern that. We have subsequently received some concessions from National Treasury, but it is not very broad for our environment."

Deputy Minister Mondli Gungubele said the SABC has stabilised since the board took over two years ago and the entity has reduced its losses from R700 million to R200 million.