MultiChoice will also pay R8 million to the Economic Development Fund over three years, to enable the development of black-owned small media.
JOHANNESBURG - MultiChoice wants its audit and risk committee to assess if there’s been any corporate governance failures in the wake of corruption allegations.
The Democratic Alliance revealed this week that MultiChoice wanted to pay the SABC R100-million for its 24-hour news channel, reportedly in exchange for the channel&39;s political influence over the country&39;s digital migration.
The official opposition believes this supports suspicions of an underhanded deal between MultiChoice and former Gupta-owned news channel, ANN 7.
MultiChoice says the allegations are negatively affecting its reputation.
"The MultiChoice board has read the various media reports alleging that it entered into an irregular relationship for the carriage of the ANN7 channel,” the board&39;s independent non-executive director Don Eriksson said.
“The board is aware that the ANN7 channel has caused real public concern because of the allegations of corruption levelled at the former owners of the channel.”
MultiChoice says its board has therefore instructed its audit and risk committees to:
1. Assess whether there has been any corporate governance failures at MultiChoice and report back to the board. Based on what is contained in that report, the MultiChoice board will take the necessary action;
2. Assess whether the total amount paid to ANN7 is comparable to payments made for other locally-produced channels with due consideration being given to the estimated costs of running a 24-hour news channel;
3. Draw on any expertise and skills necessary in order to fulfil the mandate given by the board.