years of Living the legacy Annual Report 2018 The theme for this year’s annual report is a centenary celebration of Oliver Tambo, Nelson Mandela and Albertina Sisulu. We celebrate these historic icons who changed the course of our country through Passion, Patriotism, Integrity and Humility. We aspire to live their legacy through educating, informing and entertaining all audiences accessing SABC services. As a result the SABC will inspire change through enriching credible, relevant and compelling content that is accessible by all. *Theme is not affiliate to any political party but rather based on the centenary celebrations of our nation during the reporting period. Vision The SABC inspires change through enriching, credible, relevant and compelling content that is accessible by all. Mission To educate, inform and entertain all audiences accessing SABC services. Values Conversations and partnerships. Restoration of human dignity. Building a common future. This is the 81st Annual Report of the South African Broadcasting Corporation (SOC) Limited, referred to as ‘SABC’, ‘the Corporation’ or ‘the Company’ (Registration Number: 2003/023915/30). It is tabled in Parliament in terms of the Broadcasting Act No. 4 of 1999, as amended, and the Public Finance Management Act No. 1 of 1999, as amended. REGISTERED OFFICE ADDRESS: Henley Road, Radio Park, Auckland Park, Gauteng, 2006 POSTAL ADDRESS: Private Bag X1, Auckland Park Johannesburg, Gauteng, 2006 CONTACT NUMBERS: Tel: +27 11 714 9111 | Fax: +27 11 714 3219 EMAIL: [email protected] WEBSITE: www.sabc.co.za EXTERNAL AUDITORS: Auditor-General SA, Lefika House, 300 Middel Street, Brooklyn Pretoria, 0001 BANKERS: ABSA Limited, Absa Towers East, 3rd Floor, 170 Main Street, Johannesburg COMPANY SECRETARY: Ms Lindiwe Bayi, Group Company Secretary TEL: +27 (11) 714 2153 | Fax: +27 (11) 714 3219 MOBILE: +27 83 303 5945 POSTAL ADDRESS: Private Bag X1, Auckland Park, 2006, Gauteng, South Africa E MAIL: [email protected] List of Abbreviations 6 SABC at a Glance 9 Showcasing our Platforms 10 Organisational Structure 13 Chairperson’s Foreword 14 SABC Board 15 SABC Leadership 22 Provincial Offices and Leadership 23 Executive Director’s Overview 24 Strategic Overview 25 Legislative and Other Mandates 26 SABC Performance 29 Situational Analysis 30 Key Legislative Changes 31 Strategic Outcome Oriented Goals 32 Delivery on Predetermined Objectives 33 Summary of Financial Information 35 Commercial Revenue 37 Delivery on the Mandate 38 SABC Radio 38 SABC Television 40 SABC News and Current Affairs 44 SABC Sport 45 Universal Access 46 Transformation 46 SABC Technology 47 Marketing Initiatives: Building the SABC Brand 49 Broadcasting Complaints 49 Stakeholder Engagements 50 Contents Achievements and Awards 52 SABC Governance 55 Portfolio Committees on Communications 56 Standing Committee on Public Accounts 56 Executive Authority 56 The Accounting Authority: The SABC Board 56 Report of the SABC Board for the Year Ended 31 March 2018 58 Attendance of Board Meetings 59 Directors’ Remuneration 66 Company Secretarial Function 66 Reporting to Stakeholders 66 Stakeholder Relations 66 Risk Management 67 Internal Control 67 Internal Audit 68 Compliance with Laws and Regulations 69 Fraud and Corruption 70 Minimising Conflict of Interest 70 Code of Conduct 70 Health, Safety and Environmental Issues 71 Certificate by the Company Secretary 71 Social Responsibility 72 Audit and Risk Committee Report 75 SABC Human Resources 77 Human Resources Management 78 Annual Financial Statements 82 Statement of Responsibility by the Board of Directors 83 Report of the Auditor-General to Parliament on the SABC (SOC) Ltd 84 Statement of Financial Position as at 31 March 2018 88 Statement of Financial Performance for the Year Ended 31 March 2018 89 Statement of Other Comprehensive Income for the Year Ended 31 March 2018 90 Statement of Changes in Equity for the Year Ended 31 March 2018 91 Statement of Cash Flows for the Year Ended 31 March 2018 92 Notes to the Annual Financial Statements for the Year Ended 31 March 2018 93 Remembrance 139 Behind the scenes at SABC News. List of abbreviations 15+ Over 15 years of age CTV Cape Town Television ACA Association for Communications and DA Democratic Alliance Advertisements DAB Digital Audio Broadcasting AFCON Africa Cup of Nations DAF Delegation of Authority Framework AFS Annual Financial Statements DoA Delegation of Authority AGM Annual General Meeting DoC Department of Communications ABBREVIATIONS AGSA Auditor-General of South Africa DRM Digital Rights Management ALS African Language Stations DSAT Digital Satellite AMPS All Media Products Survey DStv Digital Satellite Television AR Audience Rating DTH Direct-to-Home ARA Association for Responsible Alcohol Use DTT Digital Terrestrial Television South African Broadcasting Corporation [SOC] Ltd | SABC Annual Report 2017/18 South African Broadcasting ATKV Afrikaanse Taal en Kultuur Vereniging EAP Employee Assistance Programme ASA Athletics South Africa ECA Electronics Communications Act ASASA Advertising Standards of South Africa ED Economic Development AU African Union EE Employment Equity BA Broadcasting Act EFC Magazine from sport BAC Bid Adjudication Committee EMS Emergency Management Services BATSA British-American Tobacco Southern Africa EPG Electronic Programme Guide B-BBEE Broad-Based Black Economic Empowerment ENPS Electronic News Production System BCCSA Broadcasting Complaints Commission of South ESS Employee Self Service Africa EVP Employee Value Proposition BEE Black Economic Empowerment EXCO Executive Committee BRC Broadcast Research Council FAMSA Family and Marriage Society of South Africa BRICS Brazil, Russia, India, China and South Africa FCC Final Control Centre BYOD Bring Your Own Device FIFA Fédération Internationale de Football Association CAATS Computer Aided Audit Tools FM Frequency Modulation CAE Chief Audit Executive FPB Film and Publication Board CAF Confederation of African Football FTA free-to-air CAGR Compound Average Growth Rate GCEO Group Chief Executive Officer Capex Capital Expenditure GE Group Executive CCC Complaints Compliance Committee GIA Group Internal Audit CCMA Commission for Conciliation, Mediation and GIBS Gordon Institute of Business Science Arbitration HCT HIV Counseling and Testing CEO Chief Executive Officer HD High Definition CFO Chief Financial Officer HDTV High DefinitionTelevision CI Corporate Identity 6 HR Human Resources CoJ City of Johannesburg IAAF International Association of Athletics Federations COO Chief Operations Officer ICASA Independent Communications Authority of South CPRP Chartered Public Relations Practitioner (CPRP) Africa CSA Cricket South Africa ICC International Cricket Council CSI Corporate Social Investment ICMA Inkomati Catchment Management Agency ICT Information Communications and Technology PEB Public Election Broadcast IDZ Industrial Development Zone PFMA Public Finance Management Act No. 1 of 1999 IEC Independent Electoral Commission PGM Provincial General Manager IFRS International Financial Reporting Standards POWA People Opposing Women Abuse IIA Institute of Internal Auditors PPPF Preferential Procurement Policy Framework IMPRA Independent Music Performance Rights Association PR Public Relations IKB Information Knowledge Building PSA Public Service Announcement IOC International Olympic Committee PS Premier Soccer League IOD Institute of Directors PWD People with Disabilities IOD Injury on Duty QoS Quality of Service IP Internet Protocol QSE Qualifying Small Enterprises IRBA Independent Regulatory Board of Auditors RAMS Radio Audience Measurement Survey ISO International Organization for Standardization RBF Radio Broadcast Facilities ISP Internet Service Provider ROI Return-on-Investment IT Information Technology RSG Radio Sonder Grense ITIL Information Technology Infrastructure Library SAARF South African Audience Research Foundation ITSM Information Technology Service Management SABC South African Broadcasting Corporation SOC KPI Key Performance Indicator Limited LAN Local Area Network SADC Southern African Development Community SAFA LPT Low Power Transmitters South African Football Association LTO Linear Tape Open SAFTA South African Film and Television Awards ABBREVIATIONS LSM Living Standards Measure SAICA South African Institute of Chartered Accountants MCC Media Credit Coordinators SALGA South African Local Government Association MCR Main Control Room SAN Storage Area Network MDM SANBS South African National Blood Services Mobile Device Management Corporation [SOC] Ltd | SABC Annual Report 2017/18 South African Broadcasting MEC Member of Executive Council SANYO South African National Youth Orchestra MEGA Mpumalanga Economic Growth Agency SAP System Application and Products in Data Processing MEX Music Exchange Conference SATMA South African Traditional Music Awards MGP Mpumalanga Gambling Board SCM Supply Chain Management MHz Megahertz SCOPA Standing Committee on Public Accounts MICT SETA Media, Information and Communication Technologies Sector Education and Training SEM Socio-Economic Measure Authority SITA State Information Technology Agency MMA METRO FM Music Awards SIU Special Investigating Unit MoI Memorandum of Incorporation SOC State Owned Company MoU Memorandum of Understanding SOE State Owned Enterprise MTEF Medium-Term Expenditure Framework SONA State of the Nation Address MTI Media, Technology and Infrastructure SOP’s Standard Operating Procedures MTPA Mpumalanga Tourism and Parks Authority SOPA State of the Province Address MWASA Media Workers’