The public broadcaster has, however, generated revenue for the year of R4.3 billion, an increase of 8.2% over its prior year's performance. But chief financial officer Robin Nicholson said rising employee costs, marketing expenses and professional and consulting fees of 9%, 42% and 186%, respectively, have considerably hurt the 2007 profitability.
No dividends were declared or paid during the year under review.
All profit of R2.9 million of the subsidiaries – Air Time TV Outside Broadcast (Pty) Ltd, Astrasat (Pty) Ltd, Auckland Programme Trade B.V [incorporated in the Netherlands], Rugby Broadcasting (Pty) Ltd and Skenia Telematics (Pty) Ltd – are included in the group's annual financial statements for the year.
These annual financial statements are presented in accordance with the Companies Act No 61 of 1973 as amended, the Broadcasting Act No 4 of 1999 as amended and the Public Financial Management Act (PFMA) No 1 of 1999.
Nevertheless, despite this financial underperformance that is set to raise eyebrows, group CEO Dali Mpofu said that the SABC's success should no longer be measured solely on the basis of its financial performance.
“Important as this is as barometer of efficient management, it is our delivery against the freedoms enshrined in the Constitution, the requirements of the Broadcasting Charter and our delivery on our corporate goals and strategy that shows our true performance,” Mpofu said.
Again, he reiterated that the restoration of human dignity remains fundamental to the SABC's goals, something he said forms an integral part of the corporation's vision of ‘Total Citizen Empowerment'.
Mpofu also said that the corporation has invested more than R1 billion in people and people-related areas, developed strategic partnerships with organised labour, led the continental drive for broadcasting legacy for 2010 and pumped close to R500 million into upgrading its technological capacities.
Chairperson of the board Sonwabo Eddie Funde, who pulled out of the new board's race shortly before being interviewed by Parliament's Portfolio Committee on Communications, also put up a brave face. “It has been another wonderful year for the SABC. We have clearly overperformed,” Funde said, adding that he was proud of all members of the current board for achieving so much during what he called a difficult tenure.
Meanwhile, the new SABC board list of 12 members – six serving in the current board – is now resting in the presidential office, waiting to be approved by President Thabo Mbeki.
Deputy chairperson Christine Denise Mary-Ann Qunta, Professor Alison Gillwald, Andile Mbeki, Ashwin Hirjee Trikamjee, Fadila Lagadien and Khanyisiwe Mkhonza are current board members, and the other six are Gloria Serobe, Peter Vundla, Pansy Tlakula, Nadia Bulbulia, Desmond Golding and Bheki Khumalo.
But opposition political parties have cried foul, objecting to the nomination of certain members and lamenting that the process has been politically manipulated ‘beyond the walls' of Parliament.
