ANNUAL REPORT 2015

CO

NTEN

TS | South A

frican Bro

adcasting

Co

rpo

ration [SO

C] Ltd

| SAB

C A

nnual Rep

ort 2014 | 2015

This is the 78th 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 Man-agement Act, No 1 of 1999, as amend-ed.

REGISTERED OFFICE ADDRESS:Radio Park, Henley Road, Auckland Park, Gauteng, 2006

POSTAL ADDRESS:Private Bag X1, Auckland Park, Johannesburg, Gauteng, 2006

CONTACT TELEPHONE NUMBERS:Tel: +27 11 714 9111Fax: +27 11 714 3219

EMAIL-ADDRESS:sabcinfo@sabc.co.za

WEBSITE ADDRESS:Visit the SABC: www.sabc.co.za

EXTERNAL AUDITORS INFORMATION:Auditor-General SA, Lefika House, 300 Middel Street, Brooklyn, Pretoria, 0001

BANKERS INFORMATION:ABSA LimitedABSA Towers East, 3rd Floor, 170 Main Street, Johannesburg

COMPANY SECRETARY Ms Theresa GeldenhuysGroup Company SecretaryTel: +27 (11) 714 3910, Fax: +27 (11) 714 3219, Mobile +27 83 679 9585Private Bag X1, Auckland Park, 2006, Gauteng, South AfricaE-mail: GeldenhuysTV@sabc.co.za

The SABC inspires change through enriching, credible, relevant

and compelling content that is accessible by all.

To educate, inform and entertain all audiences accessing SABC

services.

Conversations and PartnershipsRestoration of Human Dignity

Building a Common Future

VISION

MISSION

VALUES

Refer to page 143 on how to use this interactive image.

List of Abbreviations/Acronyms 4

SABC AT A GLANCE 7Showcasing Our Platforms 8Organisational Structure 10Foreword by the Chairperson 11Composition of the SABC Board 12SABC Leadership 16 Provincial Offices and their Leadership 17Chief Operating Officer’s report 18Strategic Overview 19Legislative and other Mandates 20

SABC PERFORMANCE 23 Situational Analysis 24 Service Delivery Environment 24 Organisational Environment 25 Key Policy Developments and Legislative Changes 25Strategic Outcome Oriented Goals 26Delivery on the Predetermined Objectives 28Summary of Financial Information 33Capital Investment, Maintenance and Asset Management Plan 36Revenue Collection: Commercial Enterprises 36Delivery on the Mandate: Compliance with Licence Conditions 37Technology 47Marketing Initiatives: Building the SABC Brand 48Complaints 51Stakeholder Engagement 52Achievements and Awards 55

SABC GOVERNANCE 59 Portfolio Committees 60Executive Authority 60The Accounting Authority/Report of the SABC Board 60Risk Management 68Internal Control 68Internal Audit and Audit Committee 69Compliance with Laws and Regulations 70Fraud and Corruption 71Minimising Conflict of Interest 72Code of Conduct 72Health, Safety and Environmental Issues 72Report by the Company Secretary 72Social Responsibility 73Audit Committee Report 75

HUMAN RESOURCE MANAGEMENT 77 Overview 78Human Resource Oversight Statistics 81

ANNUAL FINANCIAL STATEMENTS 85Statement of Responsibility and Confirmation of the Accuracy of the Annual Report 86Report of the Auditor-General to Parliament on the SABC (SOC) Ltd 87Statement of Financial Position as at 31 March 2015 91Statement of Profit and Loss for the Year Ended 31 March 2015 92Statement of Comprehensive Income for the Year Ended 31 March 2015 93Statement of Changes in Equity for the Year Ended 31 March 2015 94Statement of Cash Flows for the Year Ended 31 March 2015 95Notes to the Annual Financial Statements for the Year Ended 31 March 2015 96

IN REMEMBRANCE 142HOW TO USE THIS INTERACTIVE ANNUAL REPORT 143

ANNUAL REPORT

CONTENTS

REVERENC

ES | South A

frican Bro

adcasting

Co

rpo

ration [SO

C] Ltd

| SAB

C A

nnual Rep

ort 2014 | 2015

4

AFCON Africa Cup of NationsAGM Annual General MeetingAGSA Auditor-General of South AfricaAR’s Audience RatingsASASA Advertising Standards Authority of South AfricaARMSCOR Armaments Corporation of South AfricaAUB African Union of BroadcastersBA Broadcasting ActBAC Bid Adjudication CommitteeBASA Business and Arts South AfricaBBBEE Broad-Based Black Economic EmpowermentBCCSA Broadcasting Complaints Commission of South AfricaBRC Broadcast Research CouncilBRC RAM Broadcast Research Council Radio Audience

MeasureBRICS Brazil, Russia, India China, and South AfricaCAATS Computer-Aided Audit ToolsCAF Confederation of African FootballCCC Complaints and Compliance CommitteeCCTV Closed Circuit TelevisionCFC Cape Film CommissionCI Corporate IdentityCNN Cable News NetworkCOMESA Common Market of Eastern and Southern Africa COSAFA Confederation of Southern African Football

AssociationCRL Commission for the Promotion and Protection

of the Rights of Cultural, Religious and Linguistic Communities

CRRF Council for the Protection of Religious Rights and Freedoms

CSI Corporate Social InvestmentCSIR CouncilforScientificandIndustrialResearchDAB Digital Audio BroadcastingDBE Department of Basic EducationDCSR Department of Culture, Sports and RecreationDoC Department of CommunicationsDPSA Disabled People of South AfricaDSAT Digital SatelliteDSD Department of Social DevelopmentDStv Digital Satellite TelevisionDTH Direct to Home (Satellite distribution)DTPS Department of Telecommunications and Postal

ServicesDTT Digital Terrestrial Television/TransmissionEAP Employee Assistance ProgrammeECA Electronics Communications ActEE Employment EquityEVP Employee Value PropositionEXCO Executive CommitteeFET Formal Education and TrainingFM Frequency Modulation

GE Group ExecutiveHD HighDefinitionHDTV HighDefinitionTelevisionHR Human ResourcesICASA Independent Communications Authority of South

AfricaICT Information Communications and TechnologyIEC Independent Electoral CommissionIFFM International Fellowship of Foundational MinistriesIFRS International Financial Reporting StandardsIIA Institute of Internal AuditorsIKB Information and Knowledge BuildingIMF International Monetary FundIMO International Mathematics OlympiadIOD Institute of DirectorsIRBA Independent Regulatory Board of AuditorsISP Internet Service ProviderIT Information TechnologyKPI’s Key Performance IndicatorsLPT Low Power TransmittersLSM Living Standards MeasurementMaWids Mamelodi Women in DeedsMAEG Multimedia and Hypermedia Expert GroupMEGA Mpumalanga Economic Growth AgencyMGB Mpumalanga Gambling BoardMIFF Mpumalanga International Film FestivalMMA METRO FM Music AwardsMTEF Medium Term Expenditure FrameworkMOI Memorandum of IncorporationMOU Memorandum of UnderstandingMRM Moral Regeneration MovementMPC Monetary Policy CommitteeNAB National Association of BroadcastersNCA National Credit ActNCC National Consumer CommissionNEMISA National Electronic Media Institute of South AfricaNEPAD New Partnership for Africa’s DevelopmentNICSA National Interfaith Council of South Africa

LIST OF ABBREVIATIONS

ACRONYMS

The cast of the local soap production, Isidingo, broadcast on SABC3.

NFVF National Film and Video FoundationNLSA National Library of South AfricaNYDA National Youth Development AgencyNYSDP National Youth Skills Development ProgramOB Outside BroadcastODI One Day InternationalOHS Occupational Health and SafetyOECD Organisation for Economic Co-operation and

Development PAs Political AdvertisementsPAA Public Audit Act No. 25 of 2004PanSALB Pan South African Language BoardPBS Public Broadcasting ServicesPCC Portfolio Committee on CommunicationsPCS Public Commercial ServicesPEBs Party Election BroadcastsPMR Peer Management ReviewPFMA Public Finance Management ActPGM Provincial General ManagersPHWSBC Public Health and Welfare Sectorial Bargaining

CouncilPMC Provincial Management CommitteePOC Proof of ConceptPP Preferential ProcurementPSA Public Service AnnouncementPSL Premier Soccer LeaguePWD People With DisabilitiesRAMS Radio Audience Measurement SurveyRBF Radio Broadcast FacilitiesRFP Request for ProposalROI Return on InvestmentRPL Recognition of Prior LearningSAARF South African Advertising Research FoundationSABC South African Broadcasting Corporation SOC LimitedSABCOHA South African Business Coalition on HIV/AIDSSABS South African Bureau of StandardsSACU Southern African Customs UnionSADC Southern African Development CommunitySAFA South African Football Association

SAFTA South African Film and Television AwardsSAICA South African Institute of Chartered AccountantsSANPARK South African National ParksSAMA South African Music AwardsSAMF South African Mathematics Foundation SAMRO South African Music Rights OrganisationSANAC South African National AIDS CouncilSANS South African National StandardsSAP System Application and Products in Data ProcessingSAQA SouthAfricanQualificationsAuthoritySARB South African Reverse BankSARU South African Rugby UnionSATMA South African Traditional Music AwardsSBIS Swaziland Broadcasting and Information ServiceSBL School of Business LeadershipSEA Screen Excellence AwardsSEDA Small Enterprise Development AgencySETA Sector Education and Training AuthoritySOC State Owned CompanySOE State Owned EnterpriseSONA State of the Nation AddressSOP Standard Operating ProcedureSRSA Sport and Recreation South AfricaSTB Set-Top BoxTAMS Television Audience Measurement SurveyTOR Terms of ReferenceTV TelevisionTVBMS Television Broadcast Management SystemTVC Television CommercialTVM Television MozambiqueUSAID United States Agency for International DevelopmentUSSD Unstructured Supplementary Service DataVHF Very High FrequencyVOD Video on DemandWASPA Wireless Application Service Provider’s AssociationWEP Women Empowerment ProgrammeWIL Work Integrated LearningWSP Workplace Skills Plan15+ Over 15 years of age

5