SABC requests broader concessions from Treasury to implement sections of PFMA

The South African Broadcasting Corporation (SABC) is seeking expanded exemptions from the National Treasury, arguing that certain requirements of the Public Finance Management Act (PFMA) hinder its ability to compete effectively in the commercial media landscape. While recent improvements in financial governance signal progress, the SABC believes more regulatory flexibility is critical for long-term sustainability.

The PFMA regulates all financial activities of state entities and state-owned enterprises (SOEs), ensuring transparency, accountability, and proper use of public funds. However, the SABC contends that strict adherence to these provisions—despite their importance—limits its ability to protect intellectual property and move with agility in a fast-paced, competitive industry.

SABC Seeks Flexibility to Strengthen Competitive Edge

Speaking to Parliament’s Standing Committee on Public Accounts (SCOPA), senior executives from the SABC outlined their concerns and recent achievements. They acknowledged significant strides in governance and financial management over the past year, including securing the public broadcaster’s first unqualified audit in more than a decade. This marks a major milestone in restoring credibility and trust in the national broadcaster’s operations.

Despite this turnaround, the SABC maintains that it remains hamstrung by the inflexible requirements of the PFMA, especially when it comes to procurement. Unlike private sector broadcasters that can act swiftly and confidentially to secure strategic partnerships or acquire content, the SABC is bound by a procurement framework that prioritizes open and transparent bidding processes.

Phumzile Njoko, SABC’s head of supply chain management, highlighted the broadcaster’s operational challenges under current PFMA guidelines. “There are certain constraints that we have been experiencing when it comes to the normal PFMA regulations, particularly around procurement activities. While we have received some concessions from National Treasury, they are not sufficiently broad for the environment in which we operate,” said Njoko.

According to Njoko, the rigid rules create a disadvantage when competing with private broadcasters that are not subject to the same compliance standards. These limitations affect everything from content acquisition to vendor negotiations, often resulting in missed opportunities and slower market responses.

Although the National Treasury has granted the SABC limited exemptions to ease some operational burdens, the entity argues that these measures fall short of what’s needed to foster a truly competitive commercial strategy. The broadcaster insists that broader concessions would allow it to respond more swiftly to market demands, form strategic alliances, and better protect its content and intellectual property.

Deputy Minister in the Presidency, Mondli Gungubele, also addressed SCOPA during the session. He acknowledged the efforts of the current SABC board, which took office two years ago, in steering the entity toward greater financial stability. “The SABC has made significant progress. Losses have been reduced from R700 million to R200 million, showing a clear trajectory of recovery and responsible financial oversight,” Gungubele noted.

Still, both the management and oversight leadership agree that further reforms are necessary. The long-term viability of the SABC hinges not only on internal reforms and prudent financial management but also on creating an enabling regulatory framework that allows for competitive growth and innovation.

As the SABC continues to evolve in a rapidly changing media environment, its leadership is focused on striking the right balance between regulatory compliance and operational agility. The request for broader Treasury concessions is part of a broader vision to modernize the entity, enabling it to become a financially sustainable and commercially viable public broadcaster.

To do this effectively, the SABC needs to operate with the same flexibility afforded to its private-sector counterparts. This includes faster procurement processes, streamlined decision-making, and better protection of proprietary content. While transparency and accountability will always be core to its public service mandate, the SABC argues that excessive red tape could undermine its efforts to remain relevant in the digital era.

If granted broader concessions, the SABC believes it could unlock new revenue streams, attract investment, and deliver higher-quality programming without compromising good governance. Until then, the broadcaster will continue to advocate for reforms that support both public accountability and commercial competitiveness.

Source-EWN