SABC employees allegedly used the corporation as their personal fiefdom when they irregularly gave huge discounts – sometimes up to 85% – to big corporate clients, resulting in the SABC losing at least R1.5bn in revenue.

City Press reports a forensic investigation into the SABC’s Commercial Enterprise division scrutinised 35 top advertisers who contributed the lion’s share of the R6.6bn in net airtime sales over 18 months. The report by Nexus Forensic Services, finalised in October last year, found that clients were handed discounts totalling R1.517bn between January 2018 and June last year.

The investigation found that at least 17 junior account executives and senior managers in the division – including former Commercial Enterprise group executive Tshifhiwa Mulaudzi – flouted several rules in granting the discounts to the detriment of the SABC.

‘During the investigation, we noted that Commercial Enterprises applied large discounts and added value deals awarded to clients. These discounts and added value devaluate the (advertising) rate card rates and have significant impact on the revenue collected by the SABC,’ the report reads.

It also found that a senior manager allegedly passed confidential client information to his wife who was running an advertising agency that had contracts with the SABC. The report noted that the same employee splurged undisclosed amounts of money on beach-front properties and 20 cars.

‘We recommend that the SABC consider instituting appropriate disciplinary action against the employee,’ the report said, and suggested that the matter should be reported to the police.

Mulaudzi was fired last month after he was found guilty of corruption, gross negligence, gross insubordination, dereliction of duty, dishonesty and failure to act in the best interest of the SABC.

A source quoted by City Press reportedly said that the SABC had also instituted disciplinary hearings against three other employees. ‘More employees are to be charged as the process continues. We cannot allow the Commercial Enterprises division – vital in bringing advertising revenue for the SABC – to collapse,’ the source is quoted as saying.

The forensic report also shows that investigators found evidence on Mulaudzi’s work laptop that he received an international trip and even secured a job for his wife from a company that concluded a lucrative advertising deal with the SABC. According to City Press, the SABC confirmed Mulaudzi’s dismissal.

‘Mulaudzi faced 11 charges of misconduct, including fraud, corruption and doing business with his wife’s company without declaring this to the SABC. He was found guilty on all 11 charges and the chairperson of the disciplinary hearing recommended his immediate dismissal from the corporation,’ the SABC said.

Full City Press report