Report of the Portfolio Committee on Communications on the Budget, Strategic Plan and Priorities of the South African Broadcasting Corporation (SABC) Board, dated 13 May 2008

The Portfolio Committee on Communications, having interacted with the SABC Board on 29 and 30 April 2008, reports as follows:

Introduction

The Board was represented by its Chairperson, Ms K Mkhonza, its Deputy Chairperson, Ms C Qunta and Ms F Lagadien, Board member, on 29 April 2008. The Committee noted that the Board was not sufficiently represented at the Committee's meeting and it was agreed that the meeting be postponed to 30 April 2008 so that the absent Board Members could be requested to attend. The Committee emphasised the importance of a fully representative Board as it was important for the Committee to know whether the Board was collectively taking ownership of the Strategic Plan or whether only some of its members were committed to it. The Committee further resolved that in future Boards of all state-owned entities reporting to it had to be fully represented when appearing before the Committee.

Deliberations

The Committee resumed its business on 30 April 2008 at which the following Board members were present: Ms K Mkhonza, Chairperson, Ms C Qunta, Deputy Chairperson, Mr Bheki Khumalo, Ms C Mampane, Mr Andile Mbeki, Mr DK Golding and Adv P Tlakula.

The Committee raised a general concern about developments at the SABC, and particularly about a memorandum that had been "leaked" to the Sunday Times, which contained serious allegations against the Group Chief Executive Officer (GCEO) of the SABC. The Committee expressed its desire to assist in restoring the credibility, integrity and performance of the SABC.

It was noted that there might be a perception that the Board was accountable only to the President (as the appointing authority). However, the Board is required to report to the National Assembly.

The following issues pertaining to the SABC were considered:

1. the broadcasting rights of the Premier Soccer League (PSL) and the SABC's loss of the contract;

2. allegations raised about the legal adviser to the SABC, who resigned after being suspended;

3. allegations of bias and racism at the SABC’s Sea Point offices which led to numerous complaints;

4. allegations of financial mismanagement with regard to the remuneration of staff;

5. the apparent weakness in the SABC's financial management system; and

6. the role of the Group Executive: News and Current Affairs in the transformation of the SABC and the blacklisting of political commentators that gave rise to the Sisulu Commission.

The Chairperson of the Board assured the Committee that the Board did not intend to deprive management and the Group CEO of any opportunity to respond to the "leaked" memorandum. She disputed factual accuracies of the information presented by the Group CEO, but reserved the right to refrain from discussing the merits at that stage.

The Group CEO placed on record that the memorandum contained inaccurate and misleading information. He raised his displeasure at the potentially defamatory allegations levelled against him, which he also disputed. He further placed on record that he first became aware of the memorandum through the media and despite requests to meet with the Board to resolve the matter, the Board refused to meet him.

Conclusion

The Committee concluded that there were many contradictions that emanated from the discussions relating to the "leaked" memorandum, which involved the Board and the Group CEO, and was in doubt as to whether a proper process was in place to deal with the matter. Concern was also expressed at the fact that the team investigating the "leak" comprised the Chairperson only.

The Committee trusts that due processes will be followed in respect of the pending allegations against the Group CEO.

The Committee also concluded that:-

· serious challenges existed due to differences within the Board and between the Board and the SABC's management;

· it was unacceptable that these differences have as yet not been resolved; and

· the Board was not in a position to execute its fiduciary responsibilities effectively.

Recommendation

The Committee, noting that existing legislation does not provide for parliamentary involvement in the removal of Board members, recommends that the House:

expresses serious concern at the failure and inability of the Board to fulfill its statutory functions; and

expresses a vote of no confidence in the Board.

Report to be considered.