PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA
NATIONAL ASSEMBLY
WRITTEN REPLY
QUESTION NO: 1274
DATE OF PUBLICATION: 11 September
QUESTION PAPER NO: 16
DATE OF REPLY: 21 September 2009
Mrs J D Kilian (Cope) to ask the Minister of Communications:
1) What (a) was the total start-up cost of the SA Broadcasting
Corporationâs International News Channel, (b) were the operational
costs of the channel in the first year of operation and (c) was the
gross revenue of the channel;
2) whether there were financial outcomes in relation to the budget
projections; if not, what are the discrepancies between the budgeted
and actual outcomes; if so, what are the relevant details;
3) whether any performance or incentive bonuses were paid to executive or
general managerial personnel involved with or responsible for the
running of the affairs of the channel; if so, (a) what criteria were
used to warrant any such payments, (b) who were the beneficiaries and
(c) what was the amount paid to each person?
NW1621E
REPLY
The SABC informed me as follows:
1) (a) The total start-up cost associated with News International Channel
was negligible as this channel emerged from the then SABC Africa.
(b) The channel was launched in July 2007 and the costs incurred for
the year ended 2007/08 were R13.04 million. The full costs for the
first full financial year of operations was R91.6 million,
(c) The gross revenue of the channel in the first year of operation was
R2 million.
2) The budgeted expenditure for the first full year of operations was
R62.3 million and the actual cost as of 31 March 2009 was R91.6million.
The biggest area of over-expenditure was incurred for freelance
payments.
3) The SABC did not pay performance or incentive bonuses to executive or
general managerial personnel involved with or responsible for the
running of the affairs of the channel for the 2008/09 financial year.
Bonuses were however paid for the 2007/08 financial year.
a) The criteria used to warrant such payments were as follows:
⢠Performance Contracts as well as assessment ratings were also a
prerequisite for payment.
⢠Participant had to be a full year in service to qualify for the
full allocated amount; alternatively the amount was pro-rated.
⢠Any employee disciplined or dismissed was excluded.
⢠Individual poor performers were excluded.
⢠Scores of over 4 out of 5 were moderated to maximum 4.
⢠All the employees scores must be in line with qualifying
requirements for a bonus for that particular performance year.
⢠Sixty percent (60%) was paid in full to employees on salary scale
lower than 115 (Executives) and forty percent (40%) carried over
to the next year.
⢠Thirty percent (30%) was paid to Executives instead and seventy
percent (70%) was carried over to the next year.
⢠The weights attached were 40/30/30 rand value split between
Individual, Divisional and Company for salary scales 120 and
higher (Senior Management and Higher) and 60/40% for Middle
Managers.
b) and (c) The table below indicate who received bonuses as well as the
amounts paid:
|Position |Unit |Amount paid |
|Editor |News |R30 528.00 |
|Group Executive |News |R299 801.82 |
|General Manager |News International |R91 127.00 |