Annual Report and Financial Statements 2007 ‘To address poverty at its core, we need a uniguely African green revolution’. - Kofi Annan Vuka Sizwe! South Africa, with its multiplicity of cultures and the type of rights its citizenry enjoys, has become an example to many nations around the world. The ‘South Africa Way’ of doing things has lately been equated to a world standard of building lasting peace and a lasting nation amongst otherwise diverse cultures. It is against this backdrop that the continuance of such a cause should be championed by a giant such as the SABC, because the SABC exists for the greater public good. The SABC is thus driven by what would be of greatest benefit to South Africa and all South Africans. The SABC also exists to support, sustain and advance the democracy we live in, in a country rich in diversity. The SABC is more than a broadcaster. It is the electronic memory and consciousness of the South African nation. It is the archive and repository of the hopes, dreams and aspirations of millions of South Africans. This is where South Africa ‘happens’, where our history occurs, this is the keeper of the South African story – past, present and future. It is for this very reason that the SABC, as its new strategic vision suggests, has engineered the drive to maximise the empowerment of the South African citizenry under the notion of Broadcasting for Total Citizen Empowerment. This notion suggests that the SABC has taken upon itself the role of an enabler, one who forms partnerships with people and engages them to become, and one who engages people to take a higher ground in society. With the dynamics of the society changing, with more and more South Africans becoming conscious of their environment, as well as growing a greater understanding of who they are, the SABC, within the auspices of Broadcasting for Total Citizen Empowerment, has embarked on a journey to: ‘Inspire the Nation! to Rise! and take its destiny into its own hands.’ A nation in action is a winning nation. Therefore, the time has come for the Nation! = (i) Sizwe! in partnership with the SABC to Arise = (si) Vuke and forge ahead a tomorrow that promises an empowered citizenry: VUKA SIZWE! Vuka Sizwe! is a call to action to all South Africans to Arise and take their destiny in building a winning Nation! into their own hands. A winning nation is a South Africa that is about people who see themselves and their fellow citizens = UBUNTU as a people who are aware of their environment and choose to assume it as their responsibility. It is about people rising up to the challenge and the opportunities that present themselves. Our Vision Broadcasting for Total Our Mission Citizen Empowerment. To be a people centred, content driven, technology enabled, strategically focused Our Values and sustainable public service broadcaster. Conversations and partnerships. Restoration of human dignity. Building a common future. Our Promise Vuka South Africa. Vuka Sizwe! The SABC is South Africa’s national public broadcaster. Almost 24,6 million adults tune in to the SABC’s network of 18 radio stations every day and 24,2 million adults watch the three free-to-air television channels. Contents ‘Lalela nawe abanye bazakulalela.’ - Listen and others will return the gesture Governance Broadcasting Environment Broadcasting Charter 6 42 Regulatory Environment Corporate Goals 7 44 Commercial Enterprises Chairperson’s Statement 8 46 Audience Services Board Members 10 Group CEO’s Statement 14 People Organisational Structure 18 Executive Members 20 50 Human Capital Services Chief Financial Officer’s Report 24 54 Corporate Social Investment Corporate Governance 30 Performance Management 36 South African Broadcasting Corporation Limited 2 This is the 70th Annual Report of the South African Broadcasting Corporation Limited, refered to as ‘SABC’ or ‘the company’. (Registration Number: 2003/023915/06). 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. This report details the activities of the SABC for the twelve months to 31 March 2007. ‘Lalela nawe abanye bazakulalela.’ - Listen and others will return the gesture Programming Innovation Public Broadcasting Services 90 Technology PBS Television 59 PBS Radio 62 Awards and Achievements Public Commercial Services 94 Accolades PCS Television 65 PCS Radio 68 Annual Financial Statements Shared Services 102 Annual Financial Statements News and Current Affairs 73 Content Enterprises 77 - Educational Programming 80 - Religious Programming 82 - Sport 84 Contents Regions 86 3 A note on terminology • References in this Annual Report to the Broadcasting Act are to the Broadcasting Act, No 4 of 1999, as amended. • References to the Public Finance Management Act (PFMA) are to the Public Finance Management Act, No 1 of 1999, as amended. • References to the Companies Act are to the Companies Act, No 61 of 1973, as amended. Governance The soil - the foundation, where the values lay Broadcasting Charter The functions and duties of the SABC common carrier for free-to-air reception by the public are specified in the Broadcasting Act. subject to section 33 of the Act. In terms of this Act, the SABC, in pursuing its • to provide to other bodies by such means and methods goals and exercising its powers, enjoys freedom as may be convenient, services, programmes and of expression and journalistic, creative and materials to be transmitted or distributed by such programming independence that is guaranteed by bodies and to receive from such other bodies services, the Constitution of the Republic of South Africa. programmes and materials to be transmitted by stations of the company for reception as above. The SABC must offer, in all South Africa’s official languages, a range of informative, • to commission, compile, prepare, edit, make, print, educational and entertaining programmes that publish, issue, circulate and distribute, with or without showcase South African attitudes, opinions, charge, such books, magazines, periodicals, journals, ideas, values, talent and artistic creativity. printed matter, records, cassettes, compact disks, video tapes, audio-visual and interactive material, whether Programming must also offer a plurality of analogue or digital and whether on media now known views and a variety of news, information and or hereafter invented, as may be conducive to any of analyses from a South African perspective, and the objects of the company. advance the national and public interest. • to establish and maintain libraries and archives In terms of the Broadcasting Charter, containing materials relevant to the objects of the which is set out in the Broadcasting company and to make available to the public such Act, the objectives of the SABC are: libraries and archives with or without charge. • to make its services available throughout the Republic. • to organise, present, produce, provide or subsidise concerts, shows, variety performances, revues, musical and other productions and performances and other • to provide sound and television broadcasting services, entertainment whether live or recorded in connection by analogue or digitally, and to provide sound and with the broadcasting and programme supply services television programmes of information, education and of the company or for any purpose incidental thereto. entertainment funded by advertisements, subscription, sponsorship, licence fees or any other means of finance. • to collect news and information in any part of the world and in any manner that may be thought fit and • to acquire from time to time a licence or licences for to establish and subscribe to news agencies. such period and subject to such regulations, provisions and licence conditions as may be prescribed by the • to carry out research and development work in relation Independant Communications Authority of South to any technology relevant to the objects of the company Africa (ICASA). and to acquire by operation of law, registration, purchase, assignment, licence or otherwise copyright • to provide, in its public broadcasting services, radio and designs, trade marks, trade names and any other and television programming that informs, educates and intellectual, industrial and commercial property rights. entertains. • to nurture South African talent, train people in • to be responsive to audience needs, including the needs production skills, and carry out research and of the deaf and the blind, and be able to give account development for the benefit of audiences. on how it is meeting those needs. • to develop, produce, manufacture, purchase, acquire, • to provide other services, whether or not broadcasting use, display, sell, rent or dispose of sound recordings or programme supply services, such services being and films and materials and apparatus for use in ancillary services. connection with such sound recordings and films. • to provide television and radio programmes and any • to develop and extend the services of the company other material to be transmitted or distributed by the beyond the borders of South Africa. South African Broadcasting Corporation Limited 6 Goals Corporate ‘Mosebetsi wa hao wa sehloho ke ho mamela’. -Your first duty should be to Listen The current Board of Directors of the SABC was appointed • Ensure appropriate Employment Equity and Black in January 2004. The Board resolved to adopt a series Economic Empowerment policies. of 12 goals for the SABC which would reinforce the company’s mandate and ensure delivery in terms of the • Create an SABC that enjoys the support and respect of its Broadcasting Act. The corporate goals underlie all of shareholder, viewers, listeners and other stakeholders. the SABC’s activities and serve to ensure a coherence of these throughout the company. They also are key to the • Ensure compelling, professional and authoritative performance management of the company’s employees. news and current affairs programming that tells the South African story accurately, fairly and in a balanced The corporate goals of the SABC are to: way, while reflecting the world, in particular Africa, to all South Africans in line with the SABC’s Editorial Policies.