Remaining R1.1bn to be transferred to SABC by 31 March: Treasury

This comes after the SABC Board was informed that it would get the bailout in phases - provided that it meets certain conditions as part of its turnaround strategy.

The public broadcaster, the SABC, is expected to get the remaining R1.1 billion of its R3.2 billion bailout by the end of next month, the National Treasury said on Wednesday.

This comes after the SABC Board was informed that it would get the bailout in phases - provided that it meets certain conditions as part of its turnaround strategy.

Government allocated R3.2 billion to the SABC in 2019/20, of which R2.1 billion has been transferred, to enable the broadcaster to pay its bills.

“The conditions included reviewing broadcasting sector policies to respond to advances in technology, costing the developmental mandate and evaluating opportunities for private-sector participation.

“The remaining R1.1 billion is expected to be transferred to the SABC by 31 March 2020,” said Treasury on Wednesday, during the tabling of the 2020 Budget Speech.

Additional funding of R576 million for Denel

Meanwhile, state-owned military and aerospace equipment manufacturer, Denel, which is facing serious liquidity problems, would be allocated an additional R576 million

The government’s initial response to the entity’s challenges was an allocation of R1.8 billion in 2019/20.

“State guarantees granted to the entity amount to R6.9 billion. Additional funding of R576 million is allocated for 2020/21.

“This support is allocated with conditions that emphasize the need for Denel to speedily implement its turnaround plan. The plan includes exploring private-sector participation, optimizing its property and plant, and developing an appropriate funding model. It is critical for the government to define Denel’s role in the modern defense industry.”

Transnet borrows on the strength of its own balance sheet

National Treasury said Transnet’s net profit increased from R4.9 billion in 2017/18 to R6 billion in 2018/19, supported by fair-value adjustments on leased investment properties.

“Transnet, which borrows on the strength of its own balance sheet, raised R6.7 billion through commercial paper, bank loans, and development finance institutions in 2018/19.

“It invested R14.7 billion to maintain rail and port capacity, and R3.2 billion to expand infrastructure and equipment.

“Rating agencies downgraded Transnet’s credit rating, citing increased liquidity risk as a result of loan covenants triggered by an audit qualification on the 2018/19 annual financial statements.”

(With Inputs from South African Government Press Release)