Deputy Speaker, while millions of South Africans watched the Springboks clinch magnificent victory this weekend, let's not forget that they almost missed watching this match as the SABC didn't have enough money to air any of the other matches. This Rugby World Cup was a stark reminder of the serious problems this department and its entities - in particular the public broadcaster, are facing. Just take these three facts into account. By the end of March 2019, the SABC had a cash balance of just R72 million; losses during the past financial year amounted to R482 million and the Auditor- General gave the entity a qualified audit with irregular expenditure standing at R336 million.
Recently, the SABC got another multibillion rand bailout from government. How many times are we going to repeat this process? The SABC steals our money, nobody is held accountable and the taxpayers must fork out even more. Rinse and repeat, year after year. Unlike the Bokke, this team is not a winning one. We have been kicked out of that match because of foul play and a big red card is being shown by the Auditor-General. As we limp slowly
into the Fourth Industrial Revolution, we have little faith that government can turn the ship around.
Even other entities such as the SA Post Office is in shambles - with the CEO resigning, the board virtually vacant and the entity suffering a net loss of R1,1 billion. As we cheer the Springboks' victory, the fact is that we have very little to cheer in this department. Minister Stella Ndabeni-Abrahams has time after time shown her interference with the board of the SABC and of course with her hand on the camera, and as the captain of this team, she has shown poor leadership. The final whistle is blown and the message to her and the team is quite clear and it says, get off the field. Thank you, House Chair. [Applause.]
Deputy Speaker, the ANC government, in collaboration with the Independent Communications Authority of South Africa, Icasa, has over the years worked hard to cement the monopoly of MultiChoice in the broadcasting industry to the detriment of the SABC. They have also done so in the telecommunication sector by cementing the duopoly of the MTN and Vodacom.
We therefore cannot associate ourselves with this report and we reject it. The immediate example relating to this is the high spectrum demand whose resolution we have learnt has been subjected to an auction. This, however, will not change the duopoly of Vodacom and MTN because essentially to auction is to sell and the reality is that only the powerful players have money to compete for an auction.
There is really no way that the auction can, without conditions attached to it, break the duopoly and create competition in the market - which means that the idea of data prices falling is a fallacy or was in the first place just a trick. The other fallacy from a policy perspective is to think that there might be a new entrant anytime soon. It is difficult to see how new entrants in the industry will marshal the massive resources needed to compete with Vodacom and MTN. So, the only option is one, which must be getting the majority of the spectrum.
The other reason is that companies must be obliged in relation to sporting rights and this is why it is important. Why people couldn't watch any soccer match in
the first place is that the majority of the high premium sports rights are monopolised by MultiChoice to the detriment of the SABC, and they subcontract them to the SABC with unreasonable prices and there is no regulation in that regard.
The other thing is that Icasa must be persuaded to change its Must-Carry Regulations, which over 11 years are actually the reason that has bankrupted the SABC. For the past 11 years, SABC has been giving its millions worth of content for free to MultiChoice, including donating over 5 million viewers for free to MultiChoice. So, it is not really the fault of the SABC itself; it is because the ANC government and the regulator have worked well together - possibly through corrupt deals to disable and to disempower the public broadcaster. We reject this report. [Applause.] [Interjections.]
Deputy Speaker, the Department of Communications incorporates a number of entities, but the most pertinent issues to date have been with the SABC and the Independent Communications Authority of South Africa. This report is supposedly aligned to address the border
government policy framework, the New Growth Path and the Management Development Programme, MDP. It should prioritise job creation and poverty alleviation, combat crime and corruption and prioritise rural development education and health.
Some of the recommendations of the report stems from the Fifth Parliament's challenges with this department entities, with most of the issues surrounding the improper planning, maladministration and spending of financial resources. The SABC reported a net loss of R482 million in the 2018-19 financial period that ended in March 2019. Quite simply, this is a massive amount of money to lose and any properly run organisation that could just shift the burden to the taxpayers would be unable to easily digest this loss.
We see that corrective measures are in place to try and address the huge amount of money the SABC is haemorrhaging. The staff of the SABC should be commended on their commitment and resolve to ensure the running of the organisation while their salaries were in jeopardy due to corruption and maladministration. The IFP welcomes
the recommendation by the committee to, amongst others, propose that the Minister fully collaborate with the SA Police Service and the Special Investigating Unit, SIU; to look into the SABC's financial situation as a result of mismanagement and to comprehensively report on its turnaround strategy.
In closing, Icasa has been pushing the implementation and roll-out of 5G technologies for the next generation of broadband technology. While South Africa should be brought into these technologies, there have been potential health and environment and security risks represented by these technologies. [Time expired.] The IFP has submitted questions to all departments on various associated risks in this regard, but there have been conflicting responses to this. I support the report.
Afrikaans:
Agb Adjunkspeaker, dit is duidelik uit hierdie verslag dat die openbare uitsaaier op sy knie is. Met 'n nettoverlies van R482 miljoen 'n jaar het die ANC geslaag om 'n eens trotse openbare uitsaaier totaal te vernietig. [Tussenwerpsels.]
Die openbare uitsaaier het onrelmatige uitgawes van R336 miljoen gehad. Dit is 'n skande dat die finansile bestuur van die openbare uitsaaier tot hierdie punt toegelaat is. Dit is 'n mislukking van die Departement van Kommunikasie. Dit is 'n mislukking van die portefeuljekomitee deur die jare. Dit is bowenal 'n mislukking van die ANC, die regerende party.
Dit is die ANC en sy kaderontplooiingskomitee wat mense in die entiteite van Kommunikasie aangestel het en wat toegelaat het dat hierdie entiteite misluk het.
Terwyl daar die heeltyd 'n swaard met afleggings hang oor die werknemers - mense wat hulle bes probeer om die openbare uitsaaier aan die gang te hou soos joernaliste, regiseurs, aanbieders - kry die Hoofuitvoerende Beampte van die SAUK steeds R3,9 miljoen.
Dis 'n skande dat u toleaat dat hy in nege maande R3,9 miljoen kry, dat hy R5 miljoen 'n jaar gaan kry, terwyl die openbare uitsaaier nie sy rekeninge kan betaal nie en die belastingbetaler daarvoor pa moet staan.
Dit is weereens 'n voorbeeld van hoe swak u regeer. Die ANC faal. Dit het Suid-Afrika gefaal. Die Departement van Kommunikasie faal. Ons verwerp hierdie verslag.
English:
House Chair, firstly we appreciate the severe challenges the SABC faces, but we wish to commend them for showing Saturday Rugby World Cup final between South Africa and England. Seldom has such an event united our nation not to stand in the many challenges we face. May we build on the hope that it has created in our nation.
We are indeed #StrongerTogether. Now, on the downside, we the ACDP played a key role in the ad hoc committee of exposing fraud and corruption in the SABC - in the Fifth Parliament. And while much is still to be done, clearly, some advances have been made and we look forward to the further outcomes of the SIU investigations into fraud and corruption.
We note that an additional R3,2 billion has been granted to the SABC. These funds are intended to pay bills,
acquire new content and conduct maintenance. One issue I have raised with the hon Minister is the unpaid royalties due to local musicians doing business and who have already provided services to the SABC.
By the end of September, they owe them almost
R160 million. Most of these musicians rely on those royalties to survive, and it is thus disgraceful that they have not been paid, notwithstanding the fact that their content has been shown on radio and on television. How can we support and encourage local artists if we don't pay them for services rendered.
We welcome the SABC commitment to pay them their fees due in terms of payment arrangement. And we trust that they would be paid without any further delays. In this regard we would like to thank the Kiffness who raised this issue with us and who continues to lobby for the payment of musicians royalties. In our view, they are doing an exceptional job and let us ensure that local artists are paid what is due to them. I thank you.
House Chair, fellow South Africans, it is in the interest of South Africans that the communication sector transforms in the way that contributes to job creation and entrepreneurship, as envisioned in the NDP goals. Unfortunately, the opposing views fall short of grasping this issue.
The department and its entities continue to ensure that the digital divide that entrenches the challenges of poverty, unemployment and inequality is practically confronted. This is done through the movement of funds within the allocated funds to ensure that we in earnest deliver on the data market share and the much-awaited high demand spectrum.
I want to state that already Icasa has issued an information memorandum on the spectrum for commentary. For those ideas that are thrown, you better use this process to throw ideas and not lament the situation. The Budget Review and Recommendation Report, BRRR, acknowledges the performance of the department and entities reporting to it. It also makes strong recommendations where decisive action needs to be taken,
whilst appreciating entities like Sentech that have been able to balance performance and financial clean audits for over five years.
In this regard, the ANC would like to see action plans to address the findings of the Auditor-General. We also call on the department to expedite the roll out of critical infrastructure that will benefit our people, particularly those in townships and rural areas. This includes the SA Post office, the broadband and the set-top boxes.
We also comment that the SABC has not only reported problems at this point in time, but the turnaround strategy is working ... [Time expired.] The ANC supports this BRRR. [Interjections.]
Question put.
Division called.