SECTOR 2 2.12 Government does not use its power over the placement of advertisements as a means to interfere with editorial content. There have been instances where the government has threatened to withdraw advertising from newspapers as a result of negative reporting on the state’s activities. The panel noted the 2007/8 example where the Eastern Cape’s Makana municipality withdrew its advertising from the Grocott’s Mail community newspaper, as a result of the newspaper publishing an article critical of the municipality’s missing money. The newspaper sought legal help, and the municipality eventually backed down and settled out of court, by reinstating its advertising and reimbursing the court costs of the paper.29 This happened soon after Essop Pahad, then the Minister of the Presidency, had threatened to exclude the Sunday Times from state advertising. While Pahad’s row with the weekly paper had not resulted in a written instruction about an advertising boycott, it did end up costing the Sunday Times millions of rands in lost revenue, which even led to layoffs of journalists and other staff. Once Pahad left his position, the government adverts picked up again. This demonstrated the devastating effect that the withdrawal of state advertising can have on a newspaper, even one as established as the Sunday Times. The AU Declaration of Principles on Freedom of Expression (2002), to which South Africa is a signatory, states that government cannot use the withholding of media advertising as a weapon. For community newspapers, government advertising is their bread and butter: “They live in fear of offending the municipality or the government even though the threat of withdrawing government advertising is not made per se, but it hangs over them nevertheless. As a result there is no doubt that they steer clear of certain stories that could put the state in a negative light.” Mention was made of the New Age newspaper, which receives a considerable amount of government advertising, most probably because of the owners’ (the Guptas) influential political connections and the fact that this newspaper’s editorial policy is totally in line with government and the ruling party. On a positive note, Radio Riverside, an award-winning community radio station from Uppington, Northern Cape province, has a contract with the municipality with regards to broadcasting municipal programming, as well as reporting on municipal issues, even from a negative point of view. 29 Berger, G. 2008. Small paper, big victory. Media Online, 1 September. Available at: http://nml.ru.ac.za/files/small paper big victory in The Media magazine.pdf 44 AFRICAN MEDIA BAROMETER SOUTH AFRICA 2013