ANNUAL REPORT 2016 South African Broadcasting Corporation [SOC] Ltd | SABC Annual Report 2015|2016 VISION
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ANNUAL REPORT 2016 South African Broadcasting Corporation [SOC] Ltd | SABC Annual Report 2015|2016 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 and building a common future. ANNUAL REPORT CONTENTS This is the 79th Annual Report of the South African Broadcasting List of Abbreviations and Acronyms 6 Corporation (SOC) Limited, referred to as ‘SABC’, ‘the Corporation’ or ‘the Company’ (Registration Number: 2003/023915/30). SABC AT A GLANCE 9 It is tabled in Parliament in terms of the Broadcasting Act No. 4 of Showcasing our Platforms 10 1999, as amended, and the Public Finance Management Act No. 1 of 1999, as amended. Organisational Structure 12 Foreword by the Chairperson of the Board 13 REGISTERED OFFICE ADDRESS: Henley Road, Radio Park, Auckland Park, Gauteng, 2006 Composition of the Board 14 SABC Leadership 18 POSTAL ADDRESS: Private Bag X1, Auckland Park, Johannesburg, Gauteng, 2006 Executive Director’s Overview 20 Strategic Overview 21 CONTACT NUMBERS: Tel: +27 11 714 9111 | Fax: +27 11 714 3219 Legislative and Other Mandates 22 EMAIL ADDRESS: [email protected] SABC PERFORMANCE INFORMATION 25 WEBSITE ADDRESS: www.sabc.co.za Situational Analysis 26 EXTERNAL AUDITORS: Strategic Outcome-Oriented Goals 28 Auditor General of South Africa, Lefika House, 300 Middel Street, Brooklyn, Pretoria, 0001 Delivery on the Predetermined Objectives 30 Summary of Financial Information 33 BANKERS: Capital Investment, Maintenance, ABSA Limited ABSA Towers East, 3rd Floor, 170 Main Street, Johannesburg and Asset Management Plan 33 Revenue Collection 34 GROUP COMPANY SECRETARY: Ms Theresa Geldenhuys Delivery on the Mandate: Tel: +27 11 714 3910 | Fax: +27 11 714 3219 | Cell: +27 83 679 9585 Compliance with Licence Conditions 35 Private Bag X1, Auckland Park, 2006, Gauteng, South Africa SABC Radio 35 E-mail: [email protected] SABC Television 38 4 SABC News and Current Affairs 41 HUMAN RESOURCE MANAGEMENT 81 SABC Sport 43 Universal Access 45 ANNUAL FINANCIAL STATEMENTS 89 Transformation 45 Statement of Responsibility and Confirmation of the Accuracy Technology 48 of the Annual Report 90 Marketing Initiatives: Building the SABC Brand 50 Report of the Auditor-General to Parliament Complaints 51 on the SABC (SOC) Ltd 91 Stakeholder Engagement 52 Statement of Financial Position as at 31 March 2016 94 Achievements and Awards 54 Statement of Financial Performance for the Year Ended 31 March 2016 95 SABC GOVERNANCE 57 Statement of Other Comprehensive Income for the Year Portfolio Committee on Communications 58 Ended 31 March 2016 96 Executive Authority 58 The Accounting Authority: The SABC Board 58 Statement of Changes in Equity for the Year Ended 31 March 2016 97 Risk Management 67 Internal Control 68 Statement of Cash Flows for the Year Ended 31 March 2016 98 Compliance with Laws and Regulations 69 Notes to the Annual Financial Statements for the Year Ended Fraud and Corruption 71 31 March 2016 99 Minimising Conflict of Interest 71 Code of Conduct 71 IN REMEMBRANCE 142 Health, Safety and Environmental Issues 71 Certificate by the Company Secretary 72 HOW TO USE THIS INTERACTIVE ANNUAL REPORT 143 Social Responsibility 72 Audit Committee Report 79 5 List of Abbreviations and Acronyms 15+ Over 15 years of age EME Exempt Micro Enterprise AEE Accelerated Education Enterprises EMS Emergency Management Services AFCON Africa Cup of Nations ES Establishment Survey AGM Annual General Meeting EVP Employee Value Proposition AGSA Auditor General of South Africa Exco Executive Committee ALAMAU African Leadership Academy Model African Union FCC Final Control Centre ALS African Language Radio Stations FITP Finance, Investment, Procurement and Technology AMPS All Media Products Survey FM Frequency Modulation AR Audience Rating FMPPI Framework for managing programme performance ATKV Afrikaanse Taal en Kultuur Vereniging information Film and Publication Board AT A GLANCE AT AU African Union FPB AUB African Union of Broadcasters GCEO Group Chief Executive Officer BA Broadcasting Act GE Group Executive BAC Bid Adjudication Committee GIA Group Internal Audit Gordon Institute of Business Science GIBS B-BBEE Broad-Based Black Economic Empowerment South African Broadcasting Corporation [SOC] Ltd | SABC Annual Report 2015|2016 South African Broadcasting BBC British Broadcasting Corporation GRC Governance, Risk and Compliance BCCSA Broadcasting Complaints Commission of South HCS Human Capital Services Africa HD High Definition BRC Broadcast Research Council HDTV High Definition elevisionT BRICS Brazil, Russia, India, China and South Africa HR Human Resources CAATS Computer-Aided Audit Tools ICASA Independent Communications Authority of South CAF Confederation of African Football Africa Capex Capital Expenditure ICC International Cricket Council CCTV China Central Television ICDL International Computer Drivers Licence CHAN Orange African Nation Championship ICT Information Communications and Technology CI Corporate Identity IEC Independent Electoral Commission CIDB Construction Industry Development Board IFRS International Financial Reporting Standards CIPC Companies and Intellectual Property Commission IKB Information Knowledge Building CIPS Chartered Institute of Purchasing and Supply IP Internet Protocol CNN Cable News Network ISO International Organization for Standardization COGHSTA Cooperative Governance, Human Settlements and ISP Internet Service Provider Traditional Affairs IT Information Technology COMESA Common Market of Eastern and Southern Africa King III King III Report on Corporate Governance for South COSAFA Council of Southern Africa Football Associations Africa (2009) COSO Committee of Sponsoring Organizations of the KPI Key Performance Indicator Treadway Commission LAN Local Area Network CRL Commission for the Promotion and Protection of LPT Low Power Transmitters the Rights of Cultural, Religious and Linguistic MCR Main Control Room Communities MEC Member of Executive Council CSD Central Supplier Database MHz Megahertz CSI Corporate Social Investment MICT SETA Media, Information and Communication CSIR Council for Scientific and Industrial Research Technologies Sector Education and Training DA Democratic Alliance Authority DAB Digital Audio Broadcasting MISA Media Institute of Southern Africa DIRCO Department of International Relations and MMA METRO FM Music Awards Corporation MoI Memorandum of Incorporation DoC Department of Communications MPC Monetary Policy Committee DoH Department of Health MPU Micro Processing Unit DSAT Digital Satellite MRM Moral Regeneration Movement DStv Digital Satellite Television MTEF Medium Term Expenditure Framework DTH Direct-to-Home (satellite distribution) NAB National Association of Broadcasters dti Department of Trade and Industry NCA National Credit Act DTT Digital Terrestrial Television NCC National Consumer Commission EAP Employee Assistance Programme NEMISA National Electronic Media Institute of South Africa EBU European Broadcasting Union NEPAD New Partnership for Africa’s Development ECA Electronics Communications Act NFVF National Film and Video Foundation ED Equity Development NICSA National Interfaith Council of South Africa EE Employment Equity NQF National Qualifications Framework 6 NSFAS National Student Financial Aid Scheme NYSDP National Youth Skills Development Program OB Outside Broadcast ODI One Day International OECD Organisation for Economic Co-operation and Development OTT Over-The-Top PAA Public Audit Act No. 25 of 2004 PanSALB Pan-South African Language Board PBS Public Broadcasting Services PCC Portfolio Committee on Communications PCS Public Commercial Services PFMA Public Finance Management Act No. 1 of 1999 PGM Provincial General Managers POC Proof of Concept PSA Public Service Announcement PSL Premier Soccer League PWD People With Disabilities QoS Quality of Service QSE Qualifying Small Enterprise RAMS Radio Audience Measurement Survey RBF Radio Broadcast Facilities ROI Return on Investment RSG Radio Sonder Grense RWC Rugby World Cup SAA South African Airways SAARF South African Audience Research Foundation SABA Southern African Broadcasting Association SABC South African Broadcasting Corporation SOC Limited SABS South African Bureau of Standards SACU Southern African Customs Union SADC Southern African Development Community SAFA South African Football Association SAFTA South African Film and Television Awards SAMRO South African Music Rights Organisation SAN Storage Area Network SANS South African National Standards SAP System Application and Products in Data Processing SAQA South African Qualifications Authority SARB South African Reverse Bank SATMA South African Traditional Music Awards SCM Supply Chain Management SEA Screen Excellence Awards SEDA Small Enterprise Development Agency SOC State Owned Company SOE State Owned Enterprise SONA State of the Nation Address SOPA State of the Province Address STB Set Top Box TAMS Television Audience Measurement Survey TOR Terms of Reference TV Television TVBMS Television Broadcast Management System TVM Television Mozambique UN United Nations USAID United States Agency for International Development VHF Very High Frequency VOD Video on Demand WAN Wide Area Network WASPA Wireless Application Service Providers Association WSP Workplace Skills Plan 7 AT A GLANCE AT South African Broadcasting Corporation [SOC] Ltd | SABC Annual Report