Be United but We Defied the Odds, Nation Like Ours. Be United but We Defied the Odds, Nation Like Ours
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They said we’d Never be United but We Defied the Odds, because there’s No other Nation like Ours. Annual Report 2014 Vision Broadcasting for Total Citizen Empowerment. Mission To be a people centred, content driven, technology enabled, strategically focused and sustainable public service broadcaster. Values Conversations and partnerships. Restoration of human dignity. Building a common future. Mandela becomes president. SA wins the Rugby World Cup. 1994 1995 The Truth and Reconciliation Commission. Aids Activist Nkosi Johnston. South African actress Charlize Theron wins an Oscar. Announcing the host of the 2010 FIFA Soccer World Cup. 1998 The 1st South African in space, Mark Shuttleworth. 2001 2002 Contents th This is the 77 Annual Report of the 6 List Of Abbreviations/Acronyms South African Broadcasting Corporation (SOC) Limited, referred to as ‘SABC’, ‘the Corporation’ or ‘the Company’ 8 SABC at a Glance (Registration Number: 2003/023915/06). 10 SABC Radio Stations It is tabled in Parliament in terms of the Broadcasting Act, No 12 SABC TV Channels 4 of 1999, as amended, and the Public Finance Management 13 Organisational Structure Act, No 1 of 1999, as amended. 14 Foreword by the Chairman REGISTERED OFFICE ADDRESS: 15 Composition of the Board Henley Road, Radio Park, 19 Group Executives Auckland Park, Gauteng, 2006 20 Provincial Offices and Leadership POSTAL ADDRESS: 21 Group Chief Executive Officer’s Overview Private Bag X1, Auckland Park, 27 Strategic Overview Johannesburg, Gauteng, 2006 28 Legislative and Other Mandates CONTACT DETAILS: 30 SABC Performance Tel: +27 11 714 9111 Fax: +27 11 714 3219 32 Remembering Madiba Email: [email protected] 34 Situational Analysis Website: www.sabc.co.za 34 Service Delivery and Organisational Environment EXTERNAL AUDITORS: 35 Key Policy Developments and Legislative Changes Auditor General SA 37 Strategic Outcome Oriented Goals Lefika House, 300 Middel Street Delivery on Predetermined Objectives Brooklyn, Pretoria, 0001 38 Tel: +27 12 426 8000 40 Summary of Financial Information 42 Revenue Collection/Commercial Enterprises BANKERS INFORMATION: ABSA Limited, 43 Delivery on the Mandate: Compliance with Licence ABSA Towers East 3rd Floor Conditions 43 170 Main Street, Johannesburg SABC Radio 46 SABC TV 49 GROUP COMPANY SECRETARY: SABC News and Current Affairs 51 Ms Theresa Geldenhuys SABC Sport Tel: +27 11 714 3910 52 Universal Access Fax: +27 11 714 3219 Mobile +27 83 679 9585 Email: [email protected] SA mourns the passing of Madiba. SA hosts the 2010 FIFA Soccer World Cup. South African movie Tsotsi wins an Oscar. 2013 2010 Aids Activist Nkosi Johnston. South African actress Charlize Theron wins an Oscar. Announcing the host of the 2010 FIFA Soccer World Cup. The 1st South African in space, Mark Shuttleworth. 2006 2004 2004 52 Industry Development 88 Annual Financial Statements 52 Technology 90 Statement of Responsibility and Confirmation of the 54 Marketing Initiatives: Building the SABC Brand Accuracy of the Annual Report 55 Memorable Events 91 Report of the Auditor-General to Parliament on the 56 Complaints SABC (SOC) Ltd 57 Stakeholder Engagement 97 Statement of Financial Position as at 31 March 2014 59 Achievements and Awards 98 Statement of Profit and Loss for the year ended 62 SABC Governance 31 March 2014 64 Governance 99 Statement of Comprehensive Income for the year 64 Portfolio Committee ended 31 March 2014 64 Executive Authority 100 Statement of Changes in Equity for the year ended 64 The Accounting Authority/Board 31 March 2014 65 Report of the SABC Board 101 Statement of Cash Flows for the year ended 66 Attendance of Board Meetings 31 March 2014 74 Risk Management 102 Notes to the Annual Financial Statements for the year 74 Internal Control ended 31 March 2014 74 Internal Audit and Audit Committee 146 In Remembrance 76 Compliance with Laws and Regulations 76 Fraud and Corruption Honouring Men and Women who contributed to the SABC 76 Minimising Conflict of Interest 76 Code of Conduct 5 76 Health, Safety and Environmental Issues 76 Report by the Company Secretary 77 Social Responsibility 79 Audit Committee Report 80 SABC Human Resources 82 Human Resources Management References South African Broadcasting Corporation [SOC] Ltd | SABC Annual Report 2013|14 List of Abbreviations Acronyms AFCON Africa Cup of Nations ANC African National Congress AGM Annual General Meeting AGSA Auditor General of South Africa ASA Advertising Standards Authority ASASA Advertising Standards Authority of South Africa AUB A frican Union of Broadcasters BA Broadcasting Act BBBEE Broad-Based Black Economic 6 Empowerment BBC British Broadcasting Corporation BCCSA Broadcasting Complaints Commission of South Africa CAPEX Capital Expenditure CAATS Computer-Aided Audit Tools CCC Customer Competency Centre CCMA Commission for Conciliation, Mediation and Arbitration HD High Definition CCTV Closed Circuit Television HDTV High Definition Television CHAN Orange African Nation Championships ICASA Independent Communications Authority of South CI Corporate Identity Africa CNN Cable News Network ICC International Cricket Council COMESA Common Market of Eastern and ICT Information and Communications Technology Southern Africa IEC Independent Electoral Commission CSI Corporate Social Investment IFFM Independent Forum for Faith and Media CTIJF Cape Town International Jazz Festival IFRS International Financial Reporting Standards CUME Cumulative Audience IKB Informal Knowledge Building DAF Delegation of Authority Framework IP Internet Protocol DAB Digital Audio Broadcasting ISP Internet Service Provider DoC Department of Communications IT Information Technology DSAT Digital Satellite LPT Low Power Transmitters DStv Digital Satellite Television LSM Living Standards Measurement DTH Direct to Home (Satellite Distribution) MTEF Medium Term Expenditure Framework DTT Digital Terrestrial Television MOI Memorandum of Incorporation DVR Digital Video Recorder M EAP Employee Assistance Programme MPC onetary Policy Committee EBU European Broadcasting Union NAB National Association of Broadcasters ECA Electronics Communications Act NCA National Credit Act EE Employment Equity NCC National Consumer Commission FMPPI Framework for Managing Programme NEPAD New Partnership for Africa’s Development Performance Information NICSA National Interfaith Council of South Africa FY Financial Year NFVF National Film and Video Foundation GE Group Executive NYSDP National Youth Skills Development Program GG Government Guarantee OB Outside Broadcast GIS Geographical Information System ODI One Day International GL General Ledger OECD Organisation for Economic Co-Operation and HCS Human Capital Services Development 0ur local soap production Isidingo featured on SABC3. PAA Public Audit Act No. 25 of 2004 SEA Screen Excellence Awards PanSALB Pan South African Language Board SED Socio Economic Development PBS Public Broadcasting Services SETA Sector Education and Training Authority PCC Portfolio Committee on Communications SOC State Owned Company PCS Public Commercial Services SOE State Owned Enterprise PFMA Public Finance Management Act No. 1 of 1999 SSP Super Special Projects PGM Provincial General Managers STB Set-Top Box PPE Property, Plant and Equipment TAMS Television Audience Measurement Survey PPP Public Private Partnerships TV Television PAA Public Audit Act No. 25 of 2004 TVBMS Television Broadcast Management System RAMS Radio Audience Measurement Survey USAID U nited States Agency for International Development RBF Radio Broadcast Facilities VHF V ery High Frequency RFP Request for Proposal VOD Video on Demand ROI Return on Investment WASPA Wireless Application Service Providers Association SAARF South African Audience Research Foundation 15+ Over 15 years of age SABC South African Broadcasting Corporation (SOC) Limited SABS Sou th African Bureau of Standards A note on terminology SACU Southern African Customs Union • References in this Annual Report to the Broadcasting Act are to the Broadcasting Act No. 4 of 1999, as amended. SADC Southern African Development Community • References to the Public Finance Management Act (PFMA) SAFA South African Football Association are to the Public Finance Management Act No. 1 of 1999, as 7 SAFTA South African Film and Television Awards amended. SAMRO South African Music Rights Organisation • References to the Companies Act are to the Companies Act No. SANS South African National Standards 71 of 2008, as amended. SAN Storage Area Network • Reference to the Interim Board of the SABC is to the Interim Board that was appointed on 25 March 2013. SAP System Application and Products in Data Processing • Reference to the SABC Board is to the SABC Board that was SAQA South African Qualifications Authority appointed on 25 September 2013. SARB South African Reverse Bank • Reference to King III is to the King III Code on Corporate SATMA South African Traditional Music Awards Governance. SCM Supply Chain Management At A Glance | South African Broadcasting Corporation [SOC] Ltd “While children need to be guided they also have an entrenched right to be whatever they want to be and that they can achieve this only if they are given the space to dream and live out their dreams.” - Nelson Mandela 8 9 SABC At A Glance At A Glance South African Broadcasting Corporation [SOC] Ltd | SABC Annual Report 2013|14 Showcasing Our Platforms Showcasing our 18 Radio Stations and 4 TV Channels The media landscape is forever evolving due to competition and convergence between broadcasting, telecommunications, new media and digital