Tweya mum on NBCbailout
The information minister was vague this week when asked what would be done to ease the NBC's money woes.
Information and communication minister Tjekero Tweya could not be drawn into commenting on the Namibian Broadcasting Corporation's finances during an information-sharing session held at State House this week.
The state broadcaster has experienced budget cuts following fiscal consolidation efforts initiated by the ministry of finance.
For the current financial year, the NBC received a government subsidy of N$179 million, down from N$252 million the previous year.
Without explicitly mentioning the word bailout, Tweya said his ministry remained committed to assisting the broadcaster.
“We shall deal with the NBC in terms of how it deals with its mandate. We are not talking about a bailout but [rather] how they can carry out their mandate,” Tweya said when asked to comment on the NBC's financial position.
Its director-general, Stanley Similo recently raised concern about the broadcaster's finances when it came to light that Namibia Medical Care had suspended medical aid coverage to NBC staff due to non-payment of contributions.
According to Similo, government funding provided to the NBC did not match what was required from the broadcaster to carry out its operations.
“The financial reality bestowed on us through means not of our doing is a far cry from what the NBC is attempting to achieve given its history of inadequate funding as a principle,” said Similo.
The NBC boss also noted that the budget cuts constrained NBC operations.
“It is indeed very sad that the current recessionary economic climate and the unexpected reduction of the government subsidy to NBC from N$252 million to N$179 million with a cash value of N$139 million for the same period is causing serious cash-flow challenges which hamper our monthly commitments to our creditors, including the medical aid fund,” Similo said.
According to Similo, the NBC could not align its cost structures to absorb budget cuts optimally, adding to its cash-flow woes.
“The fixed cost structure of this entity in its current form naturally is not amenable to cuts, hence the current cash-flow strain. It is equally disheartening to note that the NBC has to experience these budgetary cuts despite its immense measures around cost-cutting, the digital terrestrial rollout and the addition of programmes as well as improvement in the quality thereof,” Similo said.
OGONE TLHAGE
The state broadcaster has experienced budget cuts following fiscal consolidation efforts initiated by the ministry of finance.
For the current financial year, the NBC received a government subsidy of N$179 million, down from N$252 million the previous year.
Without explicitly mentioning the word bailout, Tweya said his ministry remained committed to assisting the broadcaster.
“We shall deal with the NBC in terms of how it deals with its mandate. We are not talking about a bailout but [rather] how they can carry out their mandate,” Tweya said when asked to comment on the NBC's financial position.
Its director-general, Stanley Similo recently raised concern about the broadcaster's finances when it came to light that Namibia Medical Care had suspended medical aid coverage to NBC staff due to non-payment of contributions.
According to Similo, government funding provided to the NBC did not match what was required from the broadcaster to carry out its operations.
“The financial reality bestowed on us through means not of our doing is a far cry from what the NBC is attempting to achieve given its history of inadequate funding as a principle,” said Similo.
The NBC boss also noted that the budget cuts constrained NBC operations.
“It is indeed very sad that the current recessionary economic climate and the unexpected reduction of the government subsidy to NBC from N$252 million to N$179 million with a cash value of N$139 million for the same period is causing serious cash-flow challenges which hamper our monthly commitments to our creditors, including the medical aid fund,” Similo said.
According to Similo, the NBC could not align its cost structures to absorb budget cuts optimally, adding to its cash-flow woes.
“The fixed cost structure of this entity in its current form naturally is not amenable to cuts, hence the current cash-flow strain. It is equally disheartening to note that the NBC has to experience these budgetary cuts despite its immense measures around cost-cutting, the digital terrestrial rollout and the addition of programmes as well as improvement in the quality thereof,” Similo said.
OGONE TLHAGE
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