OF EMPOWERING THE NATION 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 Learn from the past, Conversations and partnerships. Restoration of human dignity. Building a common future. watch the present and This is the 80th Annual Report of the South African Broadcasting Corporation (SOC) Limited, referred to as ‘SABC’, ‘the Corporation’ or ‘the Company’ inspire the generation. (Registration Number: 2003/023915/30). future 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-ADDRESS: [email protected] WEBSITE ADDRESS: www.sabc.co.za EXTERNAL AUDITORS INFORMATION: Auditor General SA, Lefi ka House, 300 Middel Street, Brooklyn Pretoria, 0001 BANKERS INFORMATION: 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 Private Bag X1, Auckland Park, 2006, Gauteng, South Africa E-mail: [email protected] Learn from the past, watch the present and inspire the future generation. Adapted from Jesse Conrad List of Abbreviations 6 SABC Performance 26 Situational Analysis 28 Strategic Outcome Oriented Goals 30 SABC at a Glance 9 Delivery on Predetermined Objectives 32 Summary of Financial Information 35 Capital Investment, Maintenance and Asset Management Plan 36 Showcasing our Platforms 10 Revenue Collection 36 Organisational Structure 13 Delivery on the Mandate: Compliance with Licence Conditions 38 Chairperson’s Overview 14 SABC Radio 38 SABC Leadership 16 SABC Television 41 Group Chief Executive Offi cer’s Overview 18 SABC News and Current Affairs 44 Strategic Overview 19 SABC Sport 46 Legislative and Other Mandates 19 Supply Chain Management 48 80 years and counting 20 SABC Technology 48 Marketing Initiatives: Building the SABC Brand 50 Complaints Received 50 Corporate Affairs 51 Achievements and Awards 54 Contents SABC Governance 56 SABC Human Resources 77 Portfolio Committees 58 SABC Staff and Audiences Celebrate 78 Executive Authority 58 Human Resources Overview 82 The Accounting Authority: The SABC Board 58 Composition of the Board 58 Report of the SABC Board for the Year Ended 31 March 2017 62 Annual Financial Statements 86 Attendance of Board Meetings 63 Directors’ Remuneration 69 Statement of Responsibility and Approval of the Board of Directors 88 Company Secretarial Function 69 Report of the Auditor-General to Parliament on the SABC (SOC) Ltd 89 Reporting to Stakeholders 69 Statement of Financial Position as at 31 March 2017 94 Stakeholder Relations 69 Statement of Financial Performance for the Year Ended 31 March 2017 95 Risk Management 70 Statement of Other Comprehensive Income for the Year Ended 31 March 2017 96 Internal Control 70 Statement of Changes in Equity for the Year Ended 31 March 2017 97 Internal Audit 70 Statement of Cash Flows for the Year Ended 31 March 2017 98 Compliance with Laws and Regulations 71 Notes to the Annual Financial Statements for the Year Ended 31 March 2017 99 Forensic Investigations 71 Health, Safety and Environmental Issues 72 Certifi cate by the Company Secretary 72 Remembrance 140 Social Responsibility 73 Audit Committee Report 75 Publication’s details List of abbreviations 15+ Over 15 years of age CCC Complaints Compliance Committee ACA Association for Communications and CI Corporate Identity Advertisements CoJ City of Johannesburg AFCON Africa Cup of Nations CSA Cricket South Africa AFS Annual Financial Statements 6 CSI Corporate Social Investment Annual General Meeting ABBREVIATIONS AGM DA Democratic Alliance AGSA Auditor General of South Africa DAB Digital Audio Broadcasting ALS African Language Radio Stations DAF Delegation of Authority Framework AMPS All Media Products Survey South African Broadcasting Corporation [SOC] Ltd | SABC Annual Report 201 South African Broadcasting DoA Delegation of Authority ASASA Advertising Standards of South Africa DoC Department of Communications AR Audience Rating DSAT Digital Satellite ATKV Afrikaanse Taal en Kultuur Vereniging DStv Digital Satellite Television AU African Union DTH Direct-to-Home (satellite distribution) BA Broadcasting Act DTT Digital Terrestrial Television BAC Bid Adjudication Committee EAP Employee Assistance Programme B-BBEE Broad Based Black Economic Empowerment ECA Electronics Communications Act BCCSA Broadcasting Complaints Commission of South Africa ED Economic Development Employment Equity BRC Broadcast Research Council EE Emergency Management Services BRICS Brazil, Russia, India, China and South Africa EMS Electronic Programme Guide BYOD Bring Your Own Device EPG Employee Value Proposition CAATS Computer Aided Audit Tools EVP Executive Committee CAF Confederation of African Football EXCO Family and Marriage Society of South Africa CAGR Conpound Average Growth Rate FAMSA 6 | 17 At work inside the outside broadcast vehicles. Final Control Centre Capex Capital Expenditure FCC FM Frequency Modulation LAN Local Area Network PBS Public Broadcasting Services FPB Film and Publication Board LPT Low Power Transmitters PCC Portfolio Committee on Communications GCEO Group Chief Executive Offi cer LTO Linear Tape Open PCS Public Commercial Services GE Group Executive MCR Main Control Room PEB Public Election Broadcast GIA Group Internal Audit MDM Mobile Device Management PFMA Public Finance Management Act No. 1 of 1999 GIBS Gordon Institute of Business Science MEC Member of Executive Council PGM Provincial General Manager HD High Defi nition MEX Music Exchange Conference PSA Public Service Announcement 7 HDTV High Defi nition Television MHz Megahertz PSL Premier Soccer League ABBREVIATIONS HR Human Resources MICT SETA Media, Information and Communication PWD People with Disabilities Technologies Sector Education and Training ICASA Independent Communications Authority of South Authority QoS Quality of Service Africa QSE Qualifying Small Enterprises MMA METRO FM Music Awards ICC International Cricket Council Corporation [SOC] Ltd | SABC Annual Report 2016 17 South African Broadcasting Radio Audience Measurement Survey MoI Memorandum of Incorporation RAMS ICT Information Communications and Technology Radio Broadcast Facilities MoU Memorandum of Understanding RBF IDZ Industrial Development Zone Return on Investment MTEF Medium Term Expenditure Framework ROI IEC Independent Electoral Commission Radio Sonder Grense MTI Media, Technology and Infrastructure RSG IFRS International Financial Reporting Standards South African Audience Research Foundation MTPA Mpumalanga Tourism and Parks Authority SAARF IKB Information Knowledge Building South African Broadcasting Corporation SOC NCA National Credit Act SABC IOD Injury on Duty Limited NCC National Consumer Commission IP Internet Protocol SADC Southern African Development Community NDP National Development Plan IMPRA Independent Music Performance Rights SAFA South African Football Association Association NEMISA National Electronic Media Institute of South Africa SAFTA South African Film and Television Awards ISO International Organization for Standardization NFVF National Film and Video Foundation SALGA South African Local Government Association ISP Internet Service Provider NQF National Qualifi cations Framework SAN Storage Area Network IT Information Technology OB Outside Broadcast SANBS South African National Blood Services ITIL Information Technology Infrastructure Library ODA Optical Disk Archiving SAP System Application and Products in Data ITSM Information Technology Service Management OTT Over-The-Top Processing KPI Key Performance Indicator PAA Public Audit Act No. 25 of 2004 SATMA South African Traditional Music Awards SCM Supply Chain Management SCOPA Standing Committee on Public Accounts SEM Socio-Economic Measure SOC State Owned Company SOE State Owned Enterprise SONA State of the Nation Address SOPA State of the Province Address SRSA Sports and Recreation South Africa STB Set Top Box 8 TAMS Television Audience Measurement Survey ABBREVIATIONS TGRP Total Guaranteed Remuneration Package TOR Terms of Reference TV Television South African Broadcasting Corporation [SOC] Ltd | SABC Annual Report 2016 17 South African Broadcasting TVBMS Television Broadcast Management System UWC University of Western Cape VHF Very High Frequency VOD Video on Demand WAN Wide Area Network WASPA Wireless Application Service Providers Association WIL Work Integrated Learning WSP Workplace Skills Plan 9 SABC at a glance SHAPING THE NATION Showcasing our platforms 18 Radio stations and 5 TV channels Channel Africa is a radio station managed by the SABC on Munghana Lonene FM broadcasts in Xitsonga and behalf of the Department of Communication (DoC). The supports the aspirations of its listeners whilst ensuring station broadcasts on shortwave spectrum to the Southern, contemporary norms and values. The station emphasises Eastern and Western Africa audiences. The broadcasts are listener participation and actively seeks expert opinion, done in English, French, Chinyanja, Portuguese, Silozi and commentary and advice on various topical issues. Swahili. Average weekly audience: 1 098 000 adults (15+) 10