The SABC will spend over 75% of the government bailout to settle the outstanding debt owed to content producers. The Public Broadcaster has secured a R2.1 billion bailout from National Treasury with the remaining R1.1 billion to be transferred once all conditions are met.
SABC CEO Madoda Mxakwe says R1.6 billion will pay content providers, while the remainder of the funds will be used to invest in new programmes.
However, the funds will not be enough to cover other creditors. Mxakwe says the broadcaster will have to negotiate with other big creditors.
“For us, the first priority is to clear the debt for the content providers and with the other bigger creditors like Supersport, Sentech, Samro. We are going to have to engage them to say if we owe you e.g. R100 million, we can we give you 25% upfront and the other we spread it out through the year to ensure a healthy capital cycle,” says Mxakwe
Watch the video below for more on the story:
The post SABC CEO says money is to pay for programmes appeared first on SABC News – Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader..