Too Early to Celebrate: Despite Unqualified Audit the SABC Remains Financially Unstable

The South African Broadcasting Corporation (SABC) has celebrated its first unqualified audit in 14 years included in its Annual Report for 2023-24. In a Media Statement issued on 6 November, the achievements are highlighted showing how the SABC has come a long way in reducing expenses and increasing revenue.

Despite these achievements, the regulator still remains in a financially unstable position. While improvements in management, governance, and internal controls led to the positive audit, the broadcaster still has not achieved break-even without substantial public financing. Its revenue has declined by R2 billion since 2016, and the ongoing drop in TV license fee compliance is further crippling its financial health.

Audit Opinion And What Does It Mean

An unqualified audit means that the SABC’s financial statements are accurate and comply with accounting standards. While this is a good sign, it doesn’t automatically mean good financial health. In the SABC’s case, the audit opinion doesn’t reflect its deep financial struggles. Revenue has dropped by R2 billion since 2016, and TV licence compliance has fallen to just 14.4%. The broadcaster also faces shrinking viewership due to competition from global streaming services, further hurting its ability to generate income.

Even though advertising revenue increased by 7% and operating expenses dropped by 4%, the SABC still operates at a loss. Without proper investment in new content and infrastructure, the SABC risks losing even more of its audience and revenue. The organisation currently gets only 3% of its funding from the government, making it highly reliant on commercial revenue—something that’s hard to sustain with its current financial problems.

Can the SABC Remain Financially Viable?

While the unqualified audit indicates that the SABC is following proper processes and improving financial reporting, its long-term financial viability is still uncertain. Good financial reporting is important, but it must be considered alongside the actual financial performance. In the SABC’s case, the clean audit doesn’t change the reality that the organisation continues to struggle and cannot sustain itself without substantial financial support.