The cost-cutting measures that were already implemented saved the SABC R463 million in the past two quarters but was not enough, he added.
Advertising accounted for 85% of the revenue.
“If you look at our net loss to date, we are sitting at R323 million. The focus loss for the financial year is at R805 million.
“This brings us to the focal point of reviewing all operations and biggest cost drivers [to] ensure a commercially viable corporation,” Mxakwe said.
“The cost of the public mandate has been sitting at R4.2 billion, projections show that costs in the next three years would be at R6 billion.
“We are technically insolvent as the SABC and cannot fulfil our monthly (financial) obligations.”
The threat of insolvency was worsened by the wage bill which totalled R3.1bn, he said.
“There has been a narrative that a lot of this [wage bill] is consumed at senior level, we need to address this.
“The total costs to company of three executive directors is at R12.5 million - that’s 0.12% of the overall wage bill.
“In terms of group executives, costs are at R25 million. Then you have the cost of freelancers, which is at R500 million per annum,” said Mxakwe.
The SABC has 495 managers, whose combined annual costs are R635m.
The managers’ wage bill shoots up to R1bn when junior managers are included, he said.