Nampa in the red by almost N$2m in 2003

THE Namibian Press Agency (Nampa) operated at a loss of more than N$1,8 million during the last financial year.

In its annual report for 2002-03, the Government-funded news agency attributes the loss to the construction of new offices and fittings as well as a new editorial system to the tune of N$1,3 million. The recruitment of new staff is also said to have amplified its expenses.Its own savings funded the increase in expenditure.”Budget cuts, staff migration, and increased overheads inter alia, have seriously impeded our strategic planning and drastically affected our progress towards full commercialisation,” Nampa board chairperson Peter Bond says in the annual report.The agency however notes that its revenue from news services was boosted by more than N$500 000 last year, from N$359 234 in 2002.During the year under review, the press agency received a Government subsidy of N$6,5 million.Its bank statements still reflected a favourable balance of just more than N$1,2 million largely as a result of its savings.In line with a management recommendation that the news agency needs to diversify its operations for greater revenue generation, the Minister of Information and Broadcasting Nangolo Mbumba last Wednesday tabled an amendment to the Nampa Act which would allow it to offer information technology services and products.”While Government is seriously demanding and expects better economic performance from parastatals in terms of income generation, in some cases it is legally not possible to engage in business activities outside the stipulations of the Act,” Mbumba told the National Assembly in motivating the amendment.The new clause would allow the agency to engage in any lawful income-generating activity.A further amendment, which will be up for discussion in the National Assembly next week, relates to the roles of the Board of Directors and the agency’s management.According to Mbumba many problems have arisen because of a lack of clarity regarding their responsibilities and execution of their respective duties.The bill seeks to give the board, which shall consist of a maximum of five members appointed by the Minister, the responsibility for the policy and control of the agency.Mbumba told parliamentarians that they could expect more amendments to parastatals resorting under the Information Ministry to be tabled in future to deal with environmental changes.The recruitment of new staff is also said to have amplified its expenses.Its own savings funded the increase in expenditure.”Budget cuts, staff migration, and increased overheads inter alia, have seriously impeded our strategic planning and drastically affected our progress towards full commercialisation,” Nampa board chairperson Peter Bond says in the annual report.The agency however notes that its revenue from news services was boosted by more than N$500 000 last year, from N$359 234 in 2002.During the year under review, the press agency received a Government subsidy of N$6,5 million.Its bank statements still reflected a favourable balance of just more than N$1,2 million largely as a result of its savings.In line with a management recommendation that the news agency needs to diversify its operations for greater revenue generation, the Minister of Information and Broadcasting Nangolo Mbumba last Wednesday tabled an amendment to the Nampa Act which would allow it to offer information technology services and products.”While Government is seriously demanding and expects better economic performance from parastatals in terms of income generation, in some cases it is legally not possible to engage in business activities outside the stipulations of the Act,” Mbumba told the National Assembly in motivating the amendment.The new clause would allow the agency to engage in any lawful income-generating activity.A further amendment, which will be up for discussion in the National Assembly next week, relates to the roles of the Board of Directors and the agency’s management.According to Mbumba many problems have arisen because of a lack of clarity regarding their responsibilities and execution of their respective duties.The bill seeks to give the board, which shall consist of a maximum of five members appointed by the Minister, the responsibility for the policy and control of the agency.Mbumba told parliamentarians that they could expect more amendments to parastatals resorting under the Information Ministry to be tabled in future to deal with environmental changes.