17 April 2000
Ceremonial greetings,
I am pleased to be with you this morning to share some perspectives on the general restructuring agenda and more particularly as it relates to the South African Broadcasting Corporation(SABC).
As the sole shareholder of the SABC currently, we remain aware of the dynamics of a public entity operating in an independent manner as envisaged in Sections 15 and 23 of the Bill of Rights relating to freedom of expression and the right to access to information. Government remains fully committed to the letter and spirit of the Broadcasting Act of 1999 through which the SABC enjoys freedom of expression and journalistic, creative and programming independence.
Furthermore , Section 192 of the Constitution envisages an Independent Regulator to regulate broadcasting in the public interest and to ensure fairness and a diversity of views broadly representing South African society.
As Government, our support extends beyond this through the restructuring process to develop the core strengths and competencies of the SABC and position it as a leader in its field in South Africa and on the continent. We are thus committed to work hand-in hand with the SABC Board to realise this vision.
It is for this very reason that the Shareholder selects and appoints a Board in which resides the calibre of individuals, highly skilled, competent and capable of guiding the entity towards the goals of restructuring; unlocking value and maximising shareholder value.
It is this that underpins the mandate of our current term in office, namely to accelerate the restructuring agenda and to complete the process in the next three to four years. The co-operation, support and compliance of Boards of Directors is therefore vital to the collective success of the restructuring of the SABC and SOEs in general. This role must not be under-estimated or under- valued and must be pursued pro-actively.
Our vision for 2004 is to have as and end state "restructured state owned enterprises, SOEs, in a globally competitive environment, promoting economic growth and a better life for all. To this end we need to direct and manage the process of restructuring the SABC and SOEs in general to maximise shareholder value by introducing the requisite efficiencies and competencies and prepare the entity for competition.
As members of the SABC Board, you are no doubt aware that your responsibility is to develop a clear strategic vision in collaboration with government as shareholder, to ensure that the shareholder's macro-economic and restructuring objectives are achieved.
We believe that our role as shareholder is best served by being pro-active. We do not merely want to 'keep an eye over SOEs but rather guide , interact and ensure successful restructuring of these entities. We want SOEs and Boards of Directors to be value-adding corporate citizens pre-eminently positioned to realise the company's strategic goals and the goals of restructuring.
By pursuing an active relationship with our Boards we believe that we can better serve the economic well-being of our country and people. We thus need to ensure that in pursuit of our goal of well-managed and profitable business units and entities we integrate the requisite expertise from the private sector with the development priorities of government.
For this to be effected it is of utmost importance that in the course of restructuring we re-visit, define and establish more clearly the relationship between shareholder and SOEs, more particularly the management and Boards of Directors of SOEs. This is central to the cause of ensuring that SOEs not only function as effective business units but also play their role effectively in terms of their social responsibility.
You may be aware, as the SABC Board, of the excellent progress made by a number of SOEs in establishing good corporate governance practices. This generally emanates from or takes cognisance of legislation such as the Companies Act or specifically in the instance of the SABC, the Broadcasting Act of 1999.
To give further effect to these instruments of sound corporate governance , my Department subscribes to the Protocol on Corporate Governance, adopted in 1997. Through this mechanism we are championing as a strategic leg of the restructuring process, that Boards of SOEs also formally endorse the Protocol. We believe that this will give effect to improved service delivery standards and raise the competencies beyond existing levels to ensure service par excellence to all citizens.
Our recent experience in this transitional phase of restructuring shows that on occasion Boards and the Shareholder have not always been on the same wavelength or shared the same perspective.. To address this problem SOEs are in the process of engaging with a team of specialists with a view to establishing a Shareholder Compact between the Board and myself as Minister. This clearly defines performance expectations and parameters and should greatly assist in driving forward government's restructuring agenda.
It is further common cause that the compacts serve to compliment the Boards' responsibility to develop strategic business plans and more specifically define the relationship between the signatories whilst identifying the behaviour required to support effective management and performance.
Our mutual responsibility acting on behalf of the Shareholder is to ensure that we realise the restructuring objectives of government. That briefly entails closer monitoring of the following specific areas namely:
Our success therefore largely depends on the degree to which we are able to realise these objectives. Let me make it quite clear, there is little or no room for failure, we have to commit ourselves to finding creative and innovative solutions to the challenges that present themselves at any given moment in the course of restructuring.
I have no doubt that in the process of restructuring the SABC into two operational entities, namely Public and Commercial services, there will be numerous challenges. These challenges however present opportunities for growth and development. In extending its public services the SABC Board is guided by the need to provide services to all South Africans. This reflects the rich complexion and diverse culture and multi-lingual nature of South Africa. This therefore provides for excellent opportunities to enrich the cultural heritage of our country by providing support for contemporary and traditional artistic expression.
The Public Service role of the SABC Board also extends to ensuring that the Corporation provides significant news and public affairs programming that demonstrate the highest standards of journalism characterised by fair and unbiased coverage.
As a responsible corporate citizen and as an extension of its Public Services, the SABC Board must ensure that in the restructuring process the range of services it provides is not compromised. Of particular importance in this regard are the most vulnerable sectors of our society such as children, youth and the disabled.
The Board also has a public responsibility to support the entrepreneurial efforts of the emerging independent production sector. It is in this sector that by global standards quantum growth and development can be experienced and a multi-billion rand industry can be spawned that is able to extend its range of service into the African continent and globally.
At the Commercial level, the Board should ensure that in the process of restructuring that we fully comply with the values in the provision of broadcasting programmes.
The SABC must therefore be subject to the same policy and regulatory structures as private commercial operators. This is a vital step in preparing the corporation for competition and the future incorporation of its channels into separate business entities.
Beyond that the SABC Board must apply itself to the continued need to subsidise the public services and the implications thereof. This must however be weighed against the social responsibility of the SABC to provide quality television programming for the public good and aimed at specific target publics. Undoubtedly, one of the most exciting tasks facing the SABC Board is that of exploiting the new market opportunities that presents itself on the domestic front, in the Southern African region and further afield on the continent. This not only strengthens and extends the commercial viability of the SABC but also translates the African Renaissance in the domain of arts, culture and broadcasting.
As the Board prepares to come to terms with these challenges, it will no doubt extend the range of public-private partnerships by spawning new companies that will venture into new services and applications. This invariably means developing new broadcast companies that are private/profit driven with the potential to compete globally.
It is such companies I believe that will add value to the broadcasting sector and contribute to the socio-economic development of South Africa and the continent. This is one of the serious challenges that the process of restructuring will bring to the fore as we to come to terms with the imperatives imposed by a rapidly changing globalised technology. We have no choice however but to continue exploring the full scope of possibilities that the broadcasting sector offers to the South African public.
I however remain confident that the expertise, commitment and dedication that resides in this Board is already a recipe for success and want to assure you of our continued support and encouragement as we search for innovative solutions to our unique challenges. What is certain is that we must realise better value from our investment in the SABC and take forward the vision of positioning it as the Premier Broadcaster in Southern Africa and beyond. In pursuit of our mutual goal of a restructured SABC that is prepared for competition, I assure you of my full co-operation and that of my Department. Let us take forward the challenge of restructuring the SABC and contribute to the cause of building a better future for all our people.
I thank you.