An analysis of the main barriers to effective corporate governance at the SABC
Date
2023
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
University of the Witswatersrand, Johannesburg
Abstract
South Africa is a highly structured country with numerous rules, practices and regulations. These laws are imperative in the successful running of companies including State-owned Companies (SOCs). The SOCs including the South African Broadcasting Corporation (SABC) are governed by corporate governance framework which define the principles of fairness, accountability, responsibility and transparency – where role players are identified, those responsible for the corporate governance and to whom they are accountable. South Africa further considers its best corporate governance practises through implementation of various versions of the King Reports of Good Corporate Governance which have their foundations in effective and ethical leadership. In some instances, SOCs can be forced into complying with those laws which can lead to poor corporate governance and dysfunctionality of a company. In the case of the SABC, there were numerous allegations of maladministration, financial mismanagement, unethical conduct, abuse of power, political interference and governance challenges. The study is therefore concerned with the effective corporate governance at the SABC. It examines the main barriers to effective corporate governance rules and practices within the SABC or, put differently, why good corporate governance has eluded the SABC. The study applied the qualitative approach. The primary data was collected though semi-structured interviews - from former and current members of the boards of directors, government as a shareholder, former and current officials, representatives of the regulator and other experts in public broadcasting. The secondary data has
been examined from various archival resources such as SABC Annual Financial Statements and Reports and policies which are useful for triangulation.
It was found that the main barriers identified include political parties interference, lack of board commitment to fulfill its oversight role, abuse of shareholder’s power, no consequence management in transgression and performance monitoring systems, iii lack of adherence to the regulatory framework, appointments of unqualified and unskilled board member, lack of transparency and disclosure, and SABC funding. Based on the findings, it was concluded that The SABC has enough applicable legislation and internal policies to protect itself from abuse by the shareholder and ensure good corporate governance but effective enforcement of existing laws and regulations constitutes a major challenge for the development and implementation of corporate governance.
Description
A research report submitted to the Faculty of Management, University of the Witwatersrand, in 50% fulfillment of the requirement for the degree of Master of Management (in the field of Governance)
Keywords
Main barriers, Corporate governance, SABC, South African Broadcasting Corporation, State-owned Companies (SOCs, UCTD