SABC spent more than R23.2 million on its directors and senior management.
The South African Broadcasting Corporation (SABC) may be drowning in unpaid TV licences, but that did not stop the broadcaster from showering its CEO, Nomsa Chabeli, with millions in salary during another year of financial struggle.
SABC released its financial results for the year ended 31 March 2025, showing another year of an unqualified audit opinion, but an increase in net losses.
“Receiving an unqualified audit opinion for two consecutive years is a clear indication that the SABC is on the right path to restoring stability, embedding strong governance and fulfilling its public mandate,” said Chabeli.
SABC CEO Salary
According to the annual results for the 2025 financial year, Chabeli received a basic salary of R3.5 million, equivalent to approximately R297 916 a month. The corporation spent R1.3 million on her other expenses and allowances.
SABC spent R668 000 on Chabeli’s contribution to the pension fund, medical aid and others. All these combined cost the SABC more than R5.5 million.
The report revealed that the corporation allocated R23.2 million to its non-executive directors, executive directors and senior management. When all the other employees are included, SABC spent R41.1 million on remuneration.
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SABC loses millions
SABC’s annual results showed that it recorded a net loss of R253.3 million compared to R197.8 million in the financial year 2024.
“Modest revenue growth of 1.3% was outpaced by a 3% rise in expenditure. This resulted in a 4.9% decline in net margin,” it said.
In 2024, the broadcaster reported it was technically insolvent and uncertain if it would meet its financial obligations. It attributed its struggle to the increasing number of people using global streaming platforms.
“The corporation is no longer technically insolvent, with net assets of R1 739 million following a change in accounting policy for land and buildings from a cost to revaluation model, reflecting the current market value of these properties,” read the results.
Unpaid TV licences
The broadcaster has, for a while, complained about unpaid TV licences. For the financial year 2025, it reported being able to collect more TV licence fees this year compared to last year However, it still incurred a loss of around R4.2 billion.
“TV licences amounting to R4.936bn (2024: R4.841bn) were billed, of which only R758m (31 March 2024: R686.5m) met the probability recognition criteria and was recognised,” said the broadcaster.
While TV licences are not the SABC’s main source of income, stronger fee collections could have significantly boosted the broadcaster’s financial performance.
With a net loss of R253.3 million, the R4.2 billion in unpaid TV licence revenue could have easily turned its results into a profit.
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Streaming levy
The Broadcasting Act of 1999 stipulated that South Africans must possess TV licences to own a television. This licence is valid for one year and is payable in advance before the beginning of the licence year.
However, since then, the TV licence system has seen people opting not to pay it, choosing to pay for other streaming platforms such as Netflix, Dstv, and Showmax.
Minister of Communications and Digital Technologies, Solly Malatsi, previously said he was considering introducing a ‘streaming levy’ on streaming services as a funding option for the SABC.
TV licence model inadequate
He cited the current TV licence model as inadequate due to “low compliance, high collection costs and the eroding effects of inflation”.
However, this idea has received criticism. Leslie Adams, sales director of Reach Africa, said the SABC still matters to the millions of South Africans who cannot afford to pay for premium services.
“Yet forcing streaming platforms to foot the bill isn’t as simple as it sounds. Should the streaming levy be implemented, who is going to pay? Consumers or the streaming platforms?”
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