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SABC’s VAT Profit Plan and Eskom’s Secret Deal Stir Public Outrage—Here’s What You Didn’t Hear

While many South Africans were watching the rand improve and stocks climb after the G20 finance talks in Johannesburg, two controversial developments quietly unfolded in the background—ones that directly affect your pocket and your trust in public institutions.

The South African Broadcasting Corporation (SABC) and Eskom, both state-owned giants long under scrutiny, are now back in the spotlight. Their recent decisions could reshape how much you pay, what you receive, and how the country’s public funds are handled behind the scenes.

Let’s start with the SABC’s new VAT proposal—a plan that’s raising more than just eyebrows in Parliament.

In a recent presentation, the SABC revealed it is exploring the idea of making TV licenses zero-rated for VAT. At first glance, that sounds like a public-friendly move, right? Less tax on an already unpopular fee. But here’s the twist: the SABC says it will not pass the VAT savings on to the public. Instead, it plans to keep the difference and bank the profit—an estimated R100 million boost to its annual revenue.

In simpler terms, the public pays the same, but the SABC pockets more.

To many critics, this feels like a slap in the face. After years of public frustration over outdated TV licensing models, inconsistent content delivery, and questions around the broadcaster’s financial management, this proposal now appears more like a money-grab than a public service win.

While the SABC defends the move as a necessary revenue strategy to stay afloat in a competitive media landscape, the ethics of profiting off a tax break designed to ease consumer burden is being hotly debated.

And while that dust settles, Eskom—South Africa’s embattled power utility—has its own storm brewing.

It turns out that Eskom has a decade-long, R70 billion contract with Hillside Aluminium, one of its biggest corporate clients. That contract allows Hillside to pay nearly half the electricity rate the rest of South Africa pays.

According to new reports, Hillside gets about a 50% discount, saving R7 billion per year, for ten years. That adds up to a staggering R70 billion in benefits—funded indirectly by ordinary South Africans who now face a 12.74% price hike on their electricity bills for 2025/2026.

To make it worse, Hillside’s rate increase is linked only to the Producer Price Index (PPI)—a far more stable, often lower growth rate—while the public is stuck absorbing much sharper hikes.

Eskom claims the deal was approved through the right processes. But in a country still gripped by load shedding, price hikes, and economic pressure, many are asking how such a deal could possibly serve the public interest.

So while the rand gains and the JSE rises, back home, millions of citizens are waking up to yet another round of public-sector maneuvering that seems to benefit the powerful over the people.

Add to this a few other major developments this week:

  • President Cyril Ramaphosa is yet to sign two important Bills—one focusing on care for the elderly and the other tied to the 2025 Budget. Both are crucial for national welfare and financial planning.

  • Inflation data is expected soon, with the Consumer Price Index (CPI) predicted to rise slightly due to higher food prices.

  • And in a striking turn, Nedbank was blocked by the Johannesburg High Court from foreclosing on 12 properties after being accused of misrepresenting financial figures and violating court conduct. Acting Judge Fiona Southwood raised ethical concerns about the bank’s attorneys and their credibility.

These layered stories all share a common thread: a deepening public skepticism about how major institutions manage their responsibilities—and their money.

Whether it’s the SABC seeking to profit off a VAT change, Eskom offering discounts to big industry while raising prices for ordinary citizens, or banks pushing foreclosures with questionable paperwork, trust in South Africa’s core institutions is being tested.

📌 Poll: Should state-owned companies be allowed to profit from tax savings meant for consumers?

  • No—those savings belong to the public

  • Yes—if it helps them stay afloat

  • Only if transparent and regulated

  • I don't trust any of them anymore

Vote and share your opinion in the comment section. Your voice adds to the national conversation.

Read also:
Why SA’s Rich Are Quietly Moving Billions Abroad
How Load Shedding is Quietly Killing Local Businesses
Two Laws That Could Quietly Shift SA’s Future Are Now in Ramaphosa’s Hands

Tags: #SABCVATPlan #EskomContract #ElectricityPricesSA #SouthAfricaEconomy #StateOwnedEnterprises #PublicFunds #NedbankCourtCase #2025Budget

Meta Description (Open Graph):
As SABC plans to pocket R100 million from a VAT change and Eskom quietly gives R70 billion in electricity discounts, South Africans are asking—who really benefits from public power?

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