BusinessLive reports that Treasury director-general Dondo Mogajane said in Parliament Wednesday that the SA Broadcasting Corporation (SABC) would have to comply with conditions laid down by the Treasury before it could access the R3.2bn that it has requested from the government.  

The guarantee was refused mainly because the SABC had failed to meet its obligations and the business plan it had presented was not strong enough.  The 11 conditions that had to be met were laid out in a letter sent to the SABC in April.  Those included finalising the board (which has been accomplished), removing noncore and nonperforming activities, maximising advertising revenues and clawing back expenditure on content.  Though finance minister Tito Mboweni declined to grant the SABC the guarantee, he previously said in a letter that he recognised the immediate need for the public broadcaster to be granted some form of assistance.  On Tuesday, Mboweni said government financial support for struggling state owned enterprises such as the SABC, Denel and SAA would be released in chunks as certain conditions precedent were met.  There had to be progress in these organisations before the government would grant them funds, the minister indicated, adding that chief restructuring officers would be announced for each of the entities.

• Read the full original of Linda Ensor’s report on the above at BusinessLive

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