. The SABC is in a state of crisis, both financially and in terms of a breakdown in corporate governance. . There is a lack of common purpose among members of the Board and the Executive Management impairing their ability to carry out their statutory fiduciary duties. . The tensions between some members of the Executive Management and some Board members had contributed to a virtual breakdown in their relationships to the overall detriment of the SABC. . The SABC reported a financial loss of R839 million for 2008/09 financial year as a result of declining revenue and unrestrained over expenditure, resulting in the current severe cash flow crisis. . There is confusion about the actual status of Board membership due to the resignations not being properly addressed by Members to the appointing authority in terms of section 15(2) of the Act. . While the Board might still technically be able to constitute a quorum, it was in effect dysfunctional. . There is evidence of serious lapses in sound operational management of the SABC by the Executive Management that warrants further urgent attention by the Shareholder. . The Board does not enjoy a sound relationship with the Shareholder that is necessary for timeous reporting and proper accountability. The Committee notes that the Democratic Alliance and the Congress of the People expressed concern as to whether the inquiry complied with the requirements of due process and had initially expressed a preference for the filling of vacancies in the SABC Board.