SOUTH AFRICAN BROADCASTING CORPORATION

SOUTH AFRICAN BROADCASTING CORPORATION

19 February 2004

Subject : Mr Cecil Msomi

The SABC Board met on 13 February 2004, for a strategic planning session. In The course of the meeting, the Chairperson placed before the meeting a letter written to him by Ms Suzanne Vos of IFP MP. The letter contains allegations that Mr Cecil Msomi had a conflict of interest as a result his interest in a Public Relations /Communication Company and his position on The Board.

The specific allegation is that such conflict of interest manifested itself when the company Roundvest t/a Singile Communications placed an advertisement on Ukhozi FM for the ANC 92^nd Anniversary Celebration in KZN.

Mr Cecil Msomi explained the placing of the advertisement by the company. The management of the SABC also briefed the Board on the process that was followed in the placement of the advertisement.

After carefully deliberating the matter, the Board concluded that:

Section 17 of the Broadcasting Act provides that a person may not be appointed on the Board unless he/she has disclosed a direct or indirect financial interest in the telecommunications, broadcasting or print media Industry.

Mr Cecil Msomi does not have any financial interest in the broadcast or telecommunications industry. He does have an interest in a Public Relations Communication Company

He therefore does not have a conflict of interest which requires disclosure. Mr Msomi however. did indicate to the Portfolio Committee what work he does when he was interviewed. He further completed a standard form and disclosed the nature of his business to the SABC Board on 28 January 2004 at an induction workshop. The SABC Board will have its first Board Meeting on 3 March 2004.

The placement of the advertisement was a normal transaction in the course of business by Singile Communications. Mr Msomi did not gain any financial benefit from the SABC nor did his position as the Board member play any role.

The Sales and Marketing Division handled the advertisement as a normal transaction.

Mr Msomi had absolutely no role in the refusal of the SABC to flight an IFP election advertisement as alleged by Ms Vos to the letter to the Chairperson on 20 January 2004. The Sales and Marketing Dept declined the advertisement on the basis of ICASA regulations governing elections The advertisement dealt with elections outside the election period.

The Board is extremely concerned about the conduct of Ms Vos in writing to the Chairperson directly and making unsubstantiated allegations which are then repeated in the media.

As an IFP MP, she was part of the Portfolio Committee that selected the Board members and we expect her therefore to have accepted The decisions of the Portfolio Committee. If she is unhappy about the process, she should raise these issues within the Portfolio Committee and have matters debated there. She is, of course, entitled to ask questions from the Minister of Communications.

It is our view that she is not entitled to write directly to the Board or Management of the SABC. We view this as an attempt to influence the Management and/or Board for party political purposes. We request that the Portfolio Committee discuss this issue and investigate Ms Vos's conduct so that the Board and Management is not subjected to undue political pressure by Ms Vos or any other political party.

Yours sincerely

EDDIE FUNDE (Mr)

CHAIRPERSON - SABC BOARD

cc. The President; Mr Thabo Mbeki

Dr Mangosuthu Buthelezi MP

Ms Suzanne Vos MB

Rev Musa Zondi