National Cash-strapped SABC in new bid to secure a R3bn state guarantee BL PREMIUM

The SABC, which is struggling to pay some of its bills, says it is still engaging the Treasury in a bid to secure a R3bn government guarantee, which it hopes will keep it afloat. The financially hamstrung public broadcaster has failed to raise funding from financing institutions while it awaits the outcome of its appeal to the Treasury. It has sunk deeper into financial crisis and is unable to pay some of its service providers and producers. The SABC has been waiting for a government guarantee since mid-2017, but its request has yet to be approved by the Treasury. It is understood that the Treasury is reluctant to accede to the SABC’s request because it is concerned about increasing government contingent liabilities. These are in the form of guarantees, which are of concern to credit ratings agencies in particular because of the precarious status of several state-owned enterprises. According to the budget review, Eskom, independent power producers and the Road Accident Fund account ...