The information ministry says it is considering launching an investigation into how the Namibian Broadcasting Corporation (NBC) splashed N$5.4 million on executive bonuses, as well on a N$1.9-million vehicle for its director general.
This comes after the parliamentary standing committee on human resources and community development in its latest report says the NBC has gobbled up billions in taxpayers’ funds over the past decades.
The report was tabled in the parliament on 15 February.
“The Ministry of Information and Communication Technology should conduct an investigation and institute a forensic audit into the operations and financial affairs of the NBC to determine misappropriations, wastage, and irregular expenditure . . . the performance bonuses of N$5.4 million for NBC executives,” the report reads.
It also touches on the parastatal’s splurge of N$1.9 million on a motor vehicle for its director general Stanley Similo.
The committee compiled a report, titled ‘Report of the Motion on Devastating Strike at the Namibian Broadcasting Corporation (NBC)’.
The report says the committee was informed that the main contributing factor that led to 600 employees striking in 2021 was the N$5.4 million that was paid to the executive management and a selected few senior managers under the guise of ‘performance bonuses’.
“This led to employees believing that since the company performed, they too deserve at least an increase, because performance bonuses are supposed to be based on good performance …” the report says.
Executive director of information and communication technology Audrin Mathe yesterday said the ministry was not aware of the recommendations and will inform the relevant parties.
“We (will) study the report and make appropriate decisions and inform relevant parties,” he said.
The committee recommends that the ministry investigate and audit the NBC.
Similo did not respond to questions sent to him by the time of going to print yesterday.
NBC board chairperson Lazarus Jacobs yesterday questioned the report’s validity.
“Which misappropriations and mostly by whom?” he asked.
BACKGROUND
In 2022, NBC informed the parliamentary standing committee that it lost about N$10 million in potential revenue when close to 600 employees went on strike in 2021.
The NBC’s management defended deductions from employees’ salaries instituted by the no work-no pay rule, saying this was mutually agreed on by the company and its striking workers.
NBC employees went on a nationwide strike at the time, demanding an 8% salary increment and for all workers on one-month contracts to be employed on a full-time basis.
The no work-no pay rule led to the workers having to repay the NBC for the time they spent striking.
During a consultative meeting, Similo said the events should be viewed in context.
“Amounts were not just deducted.
They were told this is how it was going to work, and there was continuous communication to make sure people understood in that regard, to the extent that the process was also audited by an external auditor, to make sure that whatever was legally agreed upon was not outside what was contained in the agreement,” he said.
“There was an agreement in place that should the strike continue, the no work-no pay rule would apply.
“During and after the strike it was not an easy environment,” he said.
Similo at the meeting said the matter should not be viewed in isolation.
“I can assure you that everything was above board in terms of where we needed to be. The organisation did not act outside of what was agreed on. There was an agreement,” he said.
NBC spokesperson Nico Mwiya said the public broadcaster lost around N$10 million, excluding ‘goodwill’, due to the strike.
“We sell airtime to different clients within our segment. These are agencies from South Africa, and they book campaigns for the whole year.
“So, within the period of the strike most of the airtime they bought could not be adhered to.”
BAILOUT AFTER BAILOUT
The board and executives of the state broadcaster were hauled in front of a parliamentary committee two years ago for a public hearing regarding the NBC strike in April 2021.
During this hearing, Popular Democratic Movement member of parliament Elma Dienda questioned NBC board chairperson Jacobs on the rationale behind management bonuses at a time when the company claimed to be underfunded.
“If you are underfunded, give us the reasons why you give yourselves bonuses of N$5.4 million, and how did you arrive at the bonuses of each and every one of the managers?” Dienda asked.
Financial troubles at the broadcaster are not new, despite the fact that the entity is heavily subsidised by the government.
In 2017, the cash-strapped NBC said it was struggling to raise N$80 million as part of its N$345-million budget for paying bills this year.
News about the N$80-million shortfall came at a time when the broadcaster owed Namibia Medical Care (NMC) N$15 million, and had also failed to pay subsidies for workers’ houses and vehicles.
Similo at the time confirmed that they were short of N$80 million.
He said the government would give them N$139 million, while the other N$126 million will come from advertisements.
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