Mediation Proposed to Resolve SABC and Sentech Dispute Over Outstanding Debt

The South African Broadcasting Corporation (SABC) is set to enter mediation with Sentech regarding a critical dispute over an outstanding debt of US$56 million for signal carriage services.

Communications Minister, Solly Malatsi, has announced plans to appoint an independent mediator to assist in the negotiations between the two entities. The minister has prioritized this tariff dispute, and discussions regarding the terms of reference for the mediation process are currently ongoing with both parties.

A significant concern for the SABC is the potential shutdown of Sentech’s transmitters, which would severely limit the broadcaster’s ability to reach its audience. This urgency underscores the importance of resolving the dispute promptly.

The disagreement traces back to at least 2021, with the SABC previously accusing Sentech of employing monopolistic pricing in its provision of terrestrial broadcasting signals. However, following a two-year investigation by the Competition Commission, it was determined that Sentech’s pricing practices were not unfair, despite skepticism from industry experts regarding these findings.

As the negotiations have hit a stalemate, the Department of Communications has emphasized the significant risks associated with a possible transmitter shutdown, which could result in considerable audience and revenue losses for the SABC and hinder the government’s objectives for universal service.

The SABC’s inability to meet monthly repayments of approximately R55 million, excluding VAT, continues to exacerbate the situation, leading to the current debt crisis with Sentech.

The appointment of an independent mediator illustrates a proactive approach to resolving this long-standing issue, which is essential for the continuity of broadcast services and the interests of both organizations.