Business

SABC Blames Technical Bank Glitch For Non-Payment Of Salaries On Time

The company has assured its staff that salaries will be paid before the end of the day

The South African Broadcasting Corporation (SABC) has blamed a technical bank glitch that led to the company’s staff not being paid their salaries on time.

According to a report coming from Eye Witness News, some frustrated SABC employees contacted the publication complaining that they did not receive their salaries on Tuesday morning.

SABC spokesperson Neo Momodu assured the company’s staff that they would be receiving their salaries before the end of the day, as soon as a “glitch” with its banks had been resolved. Momodu explained that the non-payment of salaries had nothing to do with the public broadcaster’s liquidity, but blamed a “bank glitch” for the same.

“We are handling the matter with the bank and we are sure that it will reflect in their accounts on 29 January,” Momodu said. “We’ve paid the salaries like we always do to the necessary banks so that they reflect with our staff. We are not in control of the cash. As far we are concerned as management, the salaries should have reflected in the staff’s bank accounts.”

The panic among employees was triggered by concerns raised by the SABC management before a parliamentary portfolio committee last year. The company admitted that it may be unable to pay salaries by March 2019 if the state-owned entity did not receive much-needed capital from the government.

In order to restrict its expenses, the public broadcaster also announced that it would restructure the state-owned entity with the retrenchment of 2 200 of its employees. But, the layoff plan has currently been put on hold.

Union Bemawu has criticized the SABC for not informing about the developments on time to avoid the panic.

In related news, the South African Competition Commission has ordered SABC to pay a fine of R31.8 million for resorting to price fixing and the fixing of trading conditions in contravention of the Competition Act. It is also required to provide a 25 percent bonus advertising space to qualifying agencies, capped at a value of R40 million over the next three years, and contribute R18.8 million to the EDF over the next three years.

Caroline Finnegan

A professionnal journalist for the past ten years, I cover global news and economic affairs for The Chief Observer.

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