Parliament's portfolio committee on communications recommended on Friday that the board of the South Africa Broadcasting Corporation (SABC) be dissolved.

In a report to be handed to Parliament, the committee said the SABC was "dysfunctional" and no longer able to fulfil its statutory duties.

"The committee unanimously recommends that the National Assembly adopts a resolution recommending to the appointing authority the dissolution of the SABC board," the report said.

The SABC, which reported a financial loss of R839-million for the 2008/09 financial year, had asked the government for a R2-billion bailout.

The report said losses at the broadcaster in the past year were owing to declining revenue and "unrestrained over-expenditure".

"The SABC is in a state of crisis, both financially and in terms of a breakdown in corporate governance," the report said.

Tensions between some members of the SABC's executive management and board had contributed "to a virtual breakdown in their relationships".

There was evidence of serious lapses in sound operational management of the SABC by the executive management that warranted further urgent attention by the shareholder, the report said.

"The board does not enjoy a sound relationship with the shareholder that is necessary for timeous reporting and proper accountability," the report said.

The committee's finding came after an inquiry, held this week, into the collapse of the board.

On Wednesday, Harry Mathabathe, a deputy director-general at the department of communications said at the inquiry that SABC executives had often failed to supply reports and information.

He said that on one occasion an SABC executive had to be rushed to a meeting with the department to finalise its budget, one day before it was to be handed to the Minister of Finance.

Earlier this week, Communications Minister Siphiwe Nyanda backed a call from the SABC board to be dissolved.

Nyanda said there had been political meddling in the appointment of the board in 2007, and blamed that for much of the chaos plagueing the broadcaster.

During the inquiry, board members Gloria Serobe and Khanyisile Mkhonza announced their resignations, leaving Alison Gillwald as the last member of the board.

According to committee member Niekie van den Bergh of the Democratic Alliance, Gilwald had indicated to him that she too was no longer prepared to serve on the SABC's board.

At the inquiry SABC board member Andile Mbeki appealed for the committee to dissolve the board with immediate effect.

"Please dissolve us. Please appoint a permanent board," he said.

On Friday, committee chairperson Ismail Vadi thanked the political parties on the committee for finding a solution.

"The public broadcaster is an important institution and we have to do everything we can to restore its credibility and efficiency," he said.