Question paper no: 10
Ms J D Killian (COPE) asked the Minister of Communications:
(1) With reference to the settlement between the interim South African Broadcasting Corporation (SABC) Board and a certain person (details furnished), (a) what legal costs were incurred for the two failed suspension processes, (b) what (i) direct and (ii) indirect payments were made to him during the approximately 18-month suspension period, including housing allowances and salary, (c) what is the detailed breakdown for the total out-of-court agreement between him and the interim SABC Board, (d) what amounts have already been paid to him and (ii) from which budget allocations were these amounts paid and (e) what are the details of payment by (i) his department and (ii)the SABC respectively in respect of the total settlement;
(2) whether the person concerned was paid any performance bonuses during his term of office; if not, what is the position in this regard; if so, what amounts were paid to him per annum;
(3) whether he will be held liable for wasteful, unauthorised expenditure during his term of office; if not, why not; if so, what are the relevant details;
(4) whether such amounts will be deducted from moneys owed to him by the SABC and his department; if not, why not; if so, what are the relevant details?
Reply:
I have been advised by the SABC as follows:
(1) (a) The legal cost that was incurred was a total of R2,1 million that was paid to the legal counsel of the person in question.
(b) All payments made during the 18 month suspension of the person in question, including salary and housing allowances amounts to R984 588,21 (as at January 2009)
(c) The detailed breakdown for the total out-of-court agreement between the person in question and the interim SABC Board is as follows:
* R6,738,160,34 for the remainder of his contract
* R900 055 for bonuses due to him
* R4,4 million for restraint of trade
(d) An amount of R984,588,21 has already been paid to the person in question for the period May 2008 to January 2009. This was paid from the Group CEO cost centre as per SABC payroll.
(e)(i) The department paid R4,4 million for restraint of trade
(ii) The SABC paid R6,738,160,34, which was the total cost to company package for the remainder of his contract as agreed with the previous Board. An additional amount of R900 055, which was legally due to him, was also paid. Finally an amount of R2,1 million was paid for legal costs that were incurred during his suspension.
(2) Yes, the person in question was paid bonuses during his term of office. The details are as follows for each year of his term of office:
* 2005/06: R1,452,683,59
* 2006/07: R2,139,788,44
(3) The investigation by the Auditor-General into alleged irregularities at the SABC is being completed. Based on the outcome of this investigation determinations will be made who had committed transgressions and what action should be taken against those.
(4) Yes, if he is found to have transgressed, the SABC will claim what is due from him.
Issued by: Department of Communications
8 September 2009
