STAATSKOERANT, 24 JANUARIE 2014 No. 37261 In its application for a Government Guarantee in 2009, the SABC highlighted the need for any policy review process to review the funding mechanisms in place for the public broadcaster. It specifically highlighted challenges in relation to the licence fee system. 8.7.4 Structure of the SABC The section on funding has highlighted the need to review the structure of the SABC along with a review of the entire funding model for public broadcasting. The introduction of DTT and the increased number of television channels also requires the policy to consider whether or not these will be divided along public and public commercial lines as previously and if so, how such a division will be effected. As noted previously, it is difficult to assess the effectiveness of the division on the funding model of the SABC as the broadcaster has not produced audited separate accounts for the two wings as required by law. It is thus not possible to for example, assess the extent to which the three commercial radio services, have cross subsidised public interest content provided across the public radio stations. 8.7.5 Governance of the Public Broadcaster Major issues regarding governance at the SABC have been raised recently. One of the core issues raised in parliamentary and other forums relating to this have been about poor governance. Parliament has raised concerns about the lack of accountability of the SABC, and has considered evidence in audit and other reports of poor financial and other management controls. A key underlying issue raised by government, parliament and members of the public has been an apparent failure to effectively hold the SABC to account. Parliament has raised the need to clarify accountability mechanisms in the law to make clear, for example, the lines of accountability between the SABC and the Minister as shareholder on behalf of government, ICASA and Parliament. The Broadcasting Act together with the Public Finance Management Act, no 1 of 2000, sets out the following reporting lines in relation to the SABC: Parliament Government ICASA 8.7.6 Appointment and Constitution of the Board The Board of the SABC is made up of 12 non-executive members and three executive members (the Group Chief Executive Officer, the Chief Operating Officer and the Chief Financial Officer). The Broadcasting Act states that the Board controls the affairs of the Corporation and that the executive committee (made up of the three executive directors and no more than 11 members) administer the affairs of the Board. The executive committee is directed by the Board. The Board is the accounting authority in terms of the PFMA and as such bears overall responsibility for ensuring sound financial management. The appointment of executive members of the Board is outlined in the memorandum and articles of association. The appointment process of non-executive members of the Board is managed by Parliament. The Act also sets out the processes to be followed to remove non-executive members of the Board or dissolve the entire governing body. In the event of the dissolution of the Board, the Act states that Parliament can recommend the appointment of an Interim Board made up of five non-executive members for a term of no more than six months. 59 This gazette is also available free online at www.gpwonline.co.za 63