(1) Budget initially accolated towards the replacement of self-deploying satellite terminals of the South African Broadcasting Corporation was R42 051 200, 00.
(2) Self-deploying satellite terminals business case, was first approved as early as February 2015, following from the negotiation phase, which found that the vehicle price on the quote together with number of options during the initial evaluation were not considered. These options included operational configuration and client’s graphical interphase. The cost escalation is due to unforeseen circumstances and falls within the allowable 10% escalation as per DAF. Letter of ward was issued by the SCM on 9/11/2016, in relation to the motivation written when the budget deactivation was submitted for approval. As a result, an amount of R3 481 547, 00, was approved for budget deactivation, this amount falls within the SA Broadcasting Corporation Governance Framework
(3) (a) the name of service provider is Turnkey Media Solutions, (b) the SABC does not have the expertise and equipment to build satellite broadcast vehicle.
(4) SABC tender process was followed to appoint specified service provider, details of the process followed include the use of the SA Broadcasting Corporation SCM procurement department to carry-out the entire tender process until the service provider was appointed, audited value amount in this regard has been provided to Parliament through the SABC Annual Report tabled few weeks ago.