Communications Minister Solly Malatsi has announced plans to revise the South African Broadcasting Corporation (SABC) funding model to ensure its sustainability while the SABC Bill is being developed. This decision follows his recent withdrawal of the Bill from Parliament at the end of 2024, which he deemed ineffective.
Malatsi emphasised the need for a revised funding model that reflects the current broadcasting landscape. He stated that this process will involve evaluating the SABC’s existing funding sources, including TV licence fees and advertising revenue.
In light of compliance with the TV licence tax falling to 87% in 2024, Malatsi also aims to explore innovative revenue-generating strategies that embrace digital transformation. Media Monitoring Africa director William Bird noted that the original intention of the TV licence tax—to fund public service content—has shifted, with the content itself now being the primary revenue generator for the SABC.
One proposal by the SABC is to implement a household levy instead of the traditional TV licence, arguing that access to its content has expanded beyond just television screens. The SABC suggested that the South African Revenue Services (SARS) and MultiChoice, the parent company of DStv, could assist in collecting this levy. However, MultiChoice has rejected the idea of a private company being responsible for collecting tax revenue for a state-owned competitor.
Malatsi stressed the importance of collaborating with various stakeholders to conduct thorough reviews to ensure that the chosen funding models will promote the SABC’s financial independence and competitiveness once the Bill is enacted.
Deputy Communications Minister Mondli Gungubele and the portfolio committee chair on communications and digital technologies have indicated that they believe the Bill should have been amended rather than withdrawn entirely. When questioned on his reasoning for the withdrawal, Malatsi explained that the Bill failed to outline a credible funding mechanism or provide necessary resources to support the SABC’s mandate.
“Legislation lacking an effective funding strategy would not address the broadcaster’s issues and merely postpone significant solutions,” he stated. Furthermore, he expressed concerns about the Bill’s excessive powers to the Minister, which he believes could undermine media freedom.
The Minister’s move has sparked significant reactions within President Cyril Ramaphosa’s Government of National Unity. Ramaphosa has prevented ministers from independently withdrawing bills without prior approval.
There has been contention regarding whether this new rule can be applied retroactively, with DA leaders asserting it cannot. However, Minister Khumbudzo Ntshavheni disagreed, leading to further debate.
Malatsi has publicly voiced frustrations about delays from National Assembly Speaker Thoko Didiza, who has yet to formalise the Bill’s withdrawal despite a month passing since his request. “There seems to be an unusual delay from the Speaker’s office, which contradicts her role in upholding parliamentary rules,” he remarked.
Diko criticised Malatsi’s comments as unjust and unconstitutional, but the Minister remains firm and is considering legal options to support his decision to withdraw the Bill. “Should legal measures be necessary, they would be aimed at ensuring compliance with parliamentary regulations,” said Malatsi’s spokesperson, Kwena Moloto.
