FINANCIAL CRISIS: SA’s oldest newspaper faces uncertain future while new owners leave staff unpaid

Three months after taking ownership of two of the Eastern Cape’s best-known newspapers, Ubuntu Media Holdings has failed to pay about 100 employees their July salaries — leaving staff searching for answers about the future of the publications they produce.The company acquired five Eastern Cape titles from Arena Holdings on 1 May, including The Herald in Gqeberha, South Africa’s oldest newspaper, Daily Dispatch in KuGompo City, as well as community titles Go & Express, Talk of the Town and The Rep.The sale marked Arena Holdings’ exit from its Eastern Cape newspaper portfolio, with the media group retaining titles including Sunday Times, Business Day, Financial Mail and TimesLIVE.‘No comment’ Repeated attempts by Daily Maverick to establish what caused the missed payroll, when employees would be paid and whether the newspapers faced any risk to their continued publication were met with silence or refusals to comment from key figures at Ubuntu Media Holdings.The missed payroll has raised fears about the continued publication of the titles, with some staff saying financial pressures are affecting their ability to get to work, access data and continue working as normal.Communication about the reasons for the non-payment had yet to be made to staff on Thursday afternoon, leaving employees anxious about both their livelihoods and the future of the newspapers.Ubuntu Media Holdings CEO Bongani Siqoko declined to comment on the matter on Wednesday.When contacted on Thursday, director Sakhumzi ‘Sakhi’ Magele seemed interested only in knowing who had given Daily Maverick his phone number. When he was not given a name, he said: “Well, I can’t talk to you.” He then hung up. While Magele refused to answer questions from Daily Maverick, he gave a lengthy statement to the Daily Dispatch, one of the titles owned by his own company.On Thursday evening, Daily Maverick received a leaked PDF of Friday’s front page. In the front page statement, Magele attributes the lack of payments to “administration challenges” during the ownership transition. He claimed the “previous owners” had retained a minority stake and an agreement had been in place for them to continue managing the group’s operations while Ubuntu Media Holdings established its own operational structures ahead of taking full control on 1 August. He added that “complications” were the reason for staff not being paid.According to Magele, the “complications” led to further negotiations which resulted in Ubuntu Media Holdings acquiring the remaining shares. He said he had authorised the outstanding payments within an hour of that deal, and expected staff to be paid before the weekend.Arena Holdings had earlier on Thursday told Daily Maverick it would not be commenting on the matter. The Daily Dispatch article did not seek comment from Arena Holdings.“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,” he said.Magele said the company intended restructuring the newspaper group “at the right time, to empower them.”The statement then went on to promote the company’s online radio station and the signing of its first recording artist. Ubuntu Media Holdings CEO Bongani Siqoko is silent as unpaid workers struggle to make ends meet. (Photo: Facebook) So who is Sakhumzi Magele?According to an online business directory, Magele is listed as the director of at least 15 companies spread across Gauteng, KwaZulu-Natal, Mpumalanga, North West and the Eastern Cape. However, it is believed that he is involved in several other enterprises as well.Of the 15 mentioned, 12 of these companies are no longer active, and as of February 2026, one was in the process of liquidation. Among the three companies still active is Khumzi Investments, which entered into an agreement with Arena Holdings to form Ubuntu Media Holdings, which was established in February 2026.Magele is listed as a director of Ubuntu, along with Letlhogonolo Alloysias Molebeledi and Johannes Hermanus Peyper.Online records show that Khumzi Investments, trading as Khumzi Travel, has earned in the region of R432-million in government tenders across the country. The majority of those earnings are listed under “travel facilitation” and “hotels, lodgings and meeting facilities”.In July 2025, Khumzi Investments appeared on a list of 13 companies that tendered for a five-year “travel management” contract with the National Department of Public Works. Khumzi entered a bid of R16-million, but the document does not indicate who was awarded the contract.Magele is also the owner of KuGompo City-based The Voice Lounge, a digital radio and podcast platform that went live for the first time on 1 August 2025.Silence from the boardUbuntu chief operations officer Ryan Megaw wrote to staff on Tuesday, stating that the board was dealing with some outstanding issues.“We understand that everyone is anxious for an update and we appreciate that the uncertainty surrounding this situation continues to be extremely difficult for you and your families. “We have received feedback that the board met today to address the matter. We have been advised that certain issues require further consultation, and that the board will reconvene tomorrow with the aim of resolving the outstanding matters before the weekend. “While we appreciate that this update may not provide the certainty you are hoping for, we wanted to keep you informed as soon as we had additional information.”Anonymous letterThe lack of transparency prompted staff to write an anonymous open letter that was in circulation from Tuesday, expressing frustration due to the lack of clear communication.In the letter, staff said the uncertainty was devastating. “Many employees have not received their salaries, yet clear communication about when they will be paid has not been forthcoming. For institutions with a combined heritage spanning more than 350 years, this is unprecedented.“The uncertainty is devastating. Employees have families to support, rent and bond payments to make, school fees to pay and daily expenses that cannot simply be postponed.”The letter stated that the silence from the bosses had become unbearable and they deserved honest answers.“Readers deserve to know whether the newspapers they have trusted for generations have a future. There is growing concern that The Herald may even be unable to publish this week.“If that happens, it would mark a heartbreaking chapter in South African journalism and signal just how serious the situation has become. The reported lack of certainty surrounding salary payments and the future direction under the new ownership has left employees anxious and demoralised.”‘These people are toying with our lives’Other staff members who spoke on condition of anonymity said they had been left completely in the dark about the situation and what was to become of the publication.“It’s the uncertainty that is killing me. Even if salaries are late, the least they can do is tell us if there will still be a paper on Monday. If the answer is no, then we can start looking for work, but keeping us in limbo like this is frustrating and infuriating,” one employee said.Another colleague said their entire life had been turned upside down.“My bond, my kids’ school fees, my accounts – none of these has been paid. Am I selling my car? My house? Am I telling my kids they can’t go on that school tour? These people are toying with our lives, and it does not seem to faze them in the slightest.“Then they have the nerve to tell us: come to work, don’t talk, or you’ll be fired. But they cannot even send us an email to explain what the hell is happening? This is not fair.”Long-standing roots The history of newspapers in South Africa can be traced back to Nelson Mandela Bay, where The Herald first published in 1845. The publication was initially named the Eastern Province Herald. It underwent several name, address and ownership changes over the years, but remained one of the most trusted news sources in the region and country.Started by Scotsman John Paterson, the newspaper celebrated its 180th anniversary on 7 May 2025. Daily Dispatch can trace its roots in KuGompo back to 1872, and in the early 1900s it was the most widely circulated daily paper in the country.Together, these two sister publications are the biggest paid-for daily newspapers in SA with the biggest combined circulation.The three community newspapers serve Port Alfred, Komani and KuGompo. Important for accountabilityNelson Mandela Bay Business Chamber CEO Denise van Huyssteen said the sustainability of The Herald in the metro was important to drive accountability among key roleplayers in society.“The Herald plays a vital role in the daily lives of the citizens and businesses of Nelson Mandela Bay, and it would be a travesty should this highly respected and much-needed publication not be able to continue in its current format,” said Van Huyssteen.“While we appreciate that digital platforms are replacing the traditional media, it is nevertheless critical that citizens have access to all types of media and sources to access factual news which impacts materially on their personal and business lives.”Van Huyssteen said it was hard to imagine the Nelson Mandela Bay metro without The Herald, with its rich legacy and service to communities citywide for so many years.“The survival of media houses depends on their ability to develop sustainable business models which remain independent and attractive, in order to source funding from the market as well as reputable potential investors.Nelson Mandela Bay Business Chamber CEO Denise van Huyssteen. (Photo: Facebook) “A vibrant and free press has a vital role in contributing towards ensuring that factual and objective information is shared in the public space. This helps to inform balanced decision-making and forward planning by existing and incoming investors. For an organisation like the chamber, we value and respect the independent role that the media play in driving accountability,” she said.Chairperson of the parliamentary communications and digital technologies committee Khusela Diko Sangoni noted with concern reports about the non-payment of salaries.“It is unacceptable that journalists, who play a critical role in safeguarding democracy and keeping the public informed, should bear the consequences of commercial- or ownership-related disputes. Journalists cannot be expected to continue serving the public while facing challenges about the sustainability of their own livelihoods.”She welcomed the reported undertaking by Ubuntu to resolve the matter urgently and called on the company to honour its commitment. DM