Ubuntu Media Holdings owner Sakhumzi Magele has attributed the delayed payment of July salaries at the company’s Eastern Cape newspaper titles to what he described as “administration challenges” during the transition from the previous owners.
The company owns Eastern Cape newspapers Daily Dispatch, The Herald, GO! & Express, The Rep and Talk of the Town.
Magele said an agreement had been in place for the previous owners, who remained minority shareholders, to continue managing the group’s operationswhile Ubuntu Media Holdings established its own operational structures ahead of taking full control from August 1.
He said complications with this arrangement resulted in staff not being paid on July 25.
Staff across all five titles continued publishing throughout the week, despite not receiving their July salaries.
According to Magele, the situation prompted further negotiations, culminating in an agreement on Thursday for Ubuntu Media Holdings to acquire the remaining shares in the business.
Magele said he had authorised the salary payments within an hour of the new agreement being concluded and expected staff to receive their salaries before the weekend.
He acknowledged bearing some responsibility.
“I would not place blame on anyone, but an hour after we managed to seal the deal on Thursday morning, which saw Ubuntu Media Holdings now owning 100% of these businesses, I signed off on payments.
“Since I entered business in 2006, I have never failed to pay staff salaries, and I can assure everyone that this will never happen again,” Magele said.
He acknowledged that restoring staff confidence would take time and apologised for the hardship the situation had caused.
“Moving forward, it would be a heavy load to motivate staff and get them to have confidence in us, but I can assure everyone that this challenge, where salaries go unpaid for days, will never happen again.
“It’s a new beginning. It’s a process. What we can do now is help each other to work towards the sustainability and wellbeing of these historic titles, which are now fully in the hands of Eastern Cape people.”
Looking ahead, Magele said the company intended restructuring the newspaper group “at the right time, to empower them”, adding that he believed the future was bright.
“We promise that we will make the best of it. Contrary to popular belief, print media is not dying, but we need to make it work, and with all the support we can get, these businesses, with so much history, are destined for greatness,” he said.
Magele also highlighted the growth of Ubuntu Media Holdings’ online radio station, The Voice Lounge, which marks its first anniversary on August 1.
He said the platform had attracted more than 30-million views across its digital platforms during its first year and formed part of the company’s long-term vision to build a diversified media business spanning podcasts, online radio, music recording, print and television.
The company has also signed its first recording artist through The Voice Lounge’s recording studios, with two singles now available on music streaming platforms.