19 February 2010 CASE STUDY: SABC The cost of politics By Carol Paton

The financial and management crisis that seized the SABC last year brought the board and its CEO to their knees, with the broadcaster R2bn in the red. The crisis had its roots in politics: a politically appointed and driven board that hired an equally politically motivated CEO without the knowledge and skills for the job. Solly Mokoetle Without proper management controls, the various division heads of the SABC built their own empires. The head count ballooned: between 2007 and 2009, it rose by 70%. The SABC was also at the centre of the ANC's internal power struggles: a board appointed by ousted president Thabo Mbeki in December 2007 was eventually unseated by a parliament loyal to new president Jacob Zuma in July 2009. Now the SABC has both a new board and a new CEO. The board, though lacking in hard business skills, is the best there has been for years. There is good broadcasting knowledge and strong commitment to editorial independence, especially from chairman Ben Ngubane and CEO Solly Mokoetle. However, the new board had no say in appointing Mokoetle - an interim board did so. Because conflict between management and the board has been a perennial problem, this could set the stage for a re currence of problems. But Mokoetle, a former ANC exile who spent 12 years at the SABC, is supported by the new board. He has strong political ties to the ANC but his broadcasting experience and knowledge are admired within the SABC. Mokoetle and the board have begun cleaning up the financial and management mess, but the challenges are huge. Mokoetle has to boost revenue, shrink head count, fix the news department, secure crucial content deals, and find funding for extensive broadcasting commitments and costly digital migration plans. Proposals for an additional 1% tax to fund the SABC are absurd. In the longer term, the SABC's business plan needs a solution. Proposals for an additional 1% tax to fund the SABC are absurd.