Organisation Accountability Now has warned the SABC that viewers who have paid their television licence fees in advance could sue the public broadcaster.
Accountability Now director Advocate Paul Hoffman SC penned an open letter to SABC chair Bongumusa Makhathini, warning of possible legal action.
According to Hoffman, South Africans who paid a TV licence fee in advance should be regarded as creditors of the SABC.
He says that those licence holders are entitled to protect their investment from the SABC's financial woes.
Hoffman advises that the public broadcaster is insolvent and in danger of being liquidated.
He says Makhathini will have to explain why the SABC has not sought interventions such as business rescue.
Everybody who pays a TV license in advance is in effect a creditor of the SABC.— Advocate Paul Hoffman SC, director of Accountability Now
The public interest is adversely effected if the SABC is liquidated or simply stops paying its creditors.— Advocate Paul Hoffman SC, director of Accountability Now
Hoffman adds that Accountability Now will likely send similar warnings to other embattled state-owned entities.
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This article first appeared on 702 : SABC faces threat of class action suit over pre-paid TV licence fees