Nampa loses millions in 2019

Government intends pumping nearly N$41 million into the struggling SOE over the medium-term expenditure framework.

11 May 2021 | Economics

A material uncertainty exists that may cast a significant doubt on the entity’s ability to continue as a going concern. – Junias Kandjeke, Auditor General

State-owned Namibia Press Agency (Nampa) made a comprehensive loss of nearly N$7.7 during the 2018/19 financial year, Auditor General (AG) Junias Kandjeke has found.

In 2017/18, the agency reported a net profit of N$886 617.

Nampa’s latest audit report was submitted to the National Assembly by the minister of information and communication technology, Peya Mushelenga.

Commenting on Nampa’s financial year ended 31 March 2019, Kandjeke said: “A material uncertainty exists that may cast a significant doubt on the entity’s ability to continue as a going concern.”

“The agency is highly depended on government funding, therefore any significant reduction in the government funding to the agency will significantly affect the agency’s operations, its investments [and] financial obligations,” Kandjeke said.

SUBSIDIES

Nampa’s subsidy from government in the year under review was cut from N$22 million to N$15 million, the report shows.

Responding to questions, Nampa chief executive officer Linus Chata said the loss did not come as a surprise because the agency’s reduced subsidy. He said Nampa’s classification as a non-commercial entity as a major stumbling block on its revenue generation prospects.

“For example, our clientele base is strictly limited to a few newspapers and radio stations in the country who are in turn not obligated to subscribe to our offerings,” Chata said.

He said the Covid-19 pandemic did not spare Nampa and the agency had to revise its strategic focus by streamlining and redefining its offerings.

Chata said Nampa introduced an array of cost-cutting measures by scaling down its expenses and freezing some positions.

“But these measures can only be stretched up to some point. Beyond a certain point the scaling down strategy ceases to be effective. It actually becomes counterproductive,” Chata said.

He added that the agency is unable to capitalise some new projects.

According to the medium-term expenditure framework (MTEF) for 2021/22 to 2023/24, Nampa received N$15 million from government in 2019/20, followed by an estimated N$20 million in 2020/21.

Government budgeted for a subsidy of about N$14 million each in 2021/22 and 2022/23, followed by nearly N$12.8 billion in 2023/24.

FIGURES

According to the AG’s report for 2018/19, Nampa’s total assets value stood at N$94.3 million in 2018 while in 2019, the value was N$81.6 million.

The agency generated N$3.7 million in subscription news in 2018 and again in 2019.

From information technology (IT) income, Nampa made N$91 855 and N$80 336 in 2019 and 2018 respectively. As far as audio-visual and publication income, the state-owned agency generated N$188 795 in 2019 and N$93 457 in 2018.

During the period under review, in 2018, Nampa spent N$504 184 on board fees in 2017/18 and N$432 683 in 2018/19. – Own report and Nampa

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