NBC forensic audit shock

THE Namibian Broadcasting Corporation (NBC) lacks qualified staff in its finance department, which has resulted in the broadcaster experiencing a “wastage of resources”.

Poor controls and irregularities at the NBC also seem to be the order of the day. A preliminary version of the long-awaited forensic audit report on the affairs of the NBC has called for the broadcaster’s finance department to be equipped “with qualified personnel”.The forensic audit, which was done by independent auditing firm Grand Namibia at the instructions of the office of the Auditor General, notes a lack of control, wastage of resources, and a number of hidden costs incurred by the corporation due to staff not following procedures.The report deals with the NBC’s affairs between 2000 and 2005 but the final version is still outstanding, largely because of unanswered questions to the management of Penduka regarding irregularities in its arrangement to collect licence fees for the broadcaster.A presentation of the draft report by Grand Namibia was attended by the Minister of Information and Broadcasting and the Auditor General’s office in September.One revelation made at the presentation confirms speculation by NBC staff that current Human Resource Manager Teophilus Karipi had arranged for his own as well as two other staff members’ resignation in order to free their pension money, only to reinstate all of them almost immediately.The other two staff members are believed to be cameraman Hadley Mwashekela and Jakes Mupuku.What is not clear at this stage is whether the three also benefited from the handsome retrenchment payouts – calculated at three weeks’ pay for every year’s work – or whether they only pocketed their pension money, including the NBC’s contribution.The irregular pension payout happened in 2003, during the NBC’s restructuring process when many staff were retrenched and many positions declared redundant.”The auditors confirmed that two staff members have already received their pension, while one’s is yet to be verified,” Minister Netumbo Nandi-Ndaitwah was told during the presentation.This issue has apparently now been taken up with the NBC’s lawyers.Following the 2003 restructuring, Karipi’s then Manager Human Resources position was elevated to General Manager Human Resources, Administration and Finance.NBC insiders say as a result of the below-par performance in the Finance Department, this portfolio was removed from Karipi’s ambit.This turned into an independent unit with its own General Manager.The position was only filled last month by Kobus Groenewaldt, after two rounds of advertisements and interviews.The forensic report also reveals that certain General Managers were guilty of violating overtime arrangements, one common practice being to add one more hour to each overtime claim submitted, while some managers who are not supposed to claim overtime did so regardless of policies in place.One of Grand’s stranger findings, and the key reason why the final forensic report has not been completed yet, concerns J&P Group’s Penduka, a company set up specifically to collect licence fees for the NBC in 2004.”There are many areas of concern around this outsourcing process,” Grand Namibia reported.The report also points to the fact that some of the TV licence fees collected were not paid over.Authorisation, the report continues, was also given to Penduka to “use an unspecified amount to reportedly expand their database”.The report also explores the possibility of the NBC taking (additional) legal action against former Director General Gerry Munyama and the company Rock Enterprises.Munyama is said to have signed the agreement with Rock Enterprises, worth N$20 million, to produce local television programmes for the NBC.”No tender regulations were followed.The Shikongo Law Chambers advised the NBC that signing the first agreement without adding their recommendations could be risky, but the NBC went ahead regardless”.The corporation has been advised to seek legal advice on this issue as well.Less than a year after signing the agreement with Rock Enterprises, the NBC in July 2004 cancelled the agreement, citing financial problems.The corporation argued that Rock Enterprises had overcharged it.Another ill-conceived deal that cost the NBC millions was a vehicle lease deal with Trans United, which is said to be under the United Africa Group, run by Hadis Tilahun.The audit report states that if the NBC cancels the deal it would cost close to N$7 million, “money the NBC does not have”.The deal provides for Trans United to maintain these vehicles, but according to Grand Namibia, this has not been happening.A preliminary version of the long-awaited forensic audit report on the affairs of the NBC has called for the broadcaster’s finance department to be equipped “with qualified personnel”.The forensic audit, which was done by independent auditing firm Grand Namibia at the instructions of the office of the Auditor General, notes a lack of control, wastage of resources, and a number of hidden costs incurred by the corporation due to staff not following procedures.The report deals with the NBC’s affairs between 2000 and 2005 but the final version is still outstanding, largely because of unanswered questions to the management of Penduka regarding irregularities in its arrangement to collect licence fees for the broadcaster.A presentation of the draft report by Grand Namibia was attended by the Minister of Information and Broadcasting and the Auditor General’s office in September.One revelation made at the presentation confirms speculation by NBC staff that current Human Resource Manager Teophilus Karipi had arranged for his own as well as two other staff members’ resignation in order to free their pension money, only to reinstate all of them almost immediately.The other two staff members are believed to be cameraman Hadley Mwashekela and Jakes Mupuku.What is not clear at this stage is whether the three also benefited from the handsome retrenchment payouts – calculated at three weeks’ pay for every year’s work – or whether they only pocketed their pension money, including the NBC’s contribution.The irregular pension payout happened in 2003, during the NBC’s restructuring process when many staff were retrenched and many positions declared redundant.”The auditors confirmed that two staff members have already received their pension, while one’s is yet to be verified,” Minister Netumbo Nandi-Ndaitwah was told during the presentation.This issue has apparently now been taken up with the NBC’s lawyers.Following the 2003 restructuring, Karipi’s then Manager Human Resources position was elevated to General Manager Human Resources, Administration and Finance.NBC insiders say as a result of the below-par performance in the Finance Department, this portfolio was removed from Karipi’s ambit. This turned into an independent unit with its own General Manager.The position was only filled last month by Kobus Groenewaldt, after two rounds of advertisements and interviews.The forensic report also reveals that certain General Managers were guilty of violating overtime arrangements, one common practice being to add one more hour to each overtime claim submitted, while some managers who are not supposed to claim overtime did so regardless of policies in place.One of Grand’s stranger findings, and the key reason why the final forensic report has not been completed yet, concerns J&P Group’s Penduka, a company set up specifically to collect licence fees for the NBC in 2004.”There are many areas of concern around this outsourcing process,” Grand Namibia reported.The report also points to the fact that some of the TV licence fees collected were not paid over.Authorisation, the report continues, was also given to Penduka to “use an unspecified amount to reportedly expand their database”.The report also explores the possibility of the NBC taking (additional) legal action against former Director General Gerry Munyama and the company Rock Enterprises.Munyama is said to have signed the agreement with Rock Enterprises, worth N$20 million, to produce local television
programmes for the NBC.”No tender regulations were followed.The Shikongo Law Chambers advised the NBC that signing the first agreement without adding their recommendations could be risky, but the NBC went ahead regardless”.The corporation has been advised to seek legal advice on this issue as well.Less than a year after signing the agreement with Rock Enterprises, the NBC in July 2004 cancelled the agreement, citing financial problems.The corporation argued that Rock Enterprises had overcharged it.Another ill-conceived deal that cost the NBC millions was a vehicle lease deal with Trans United, which is said to be under the United Africa Group, run by Hadis Tilahun.The audit report states that if the NBC cancels the deal it would cost close to N$7 million, “money the NBC does not have”.The deal provides for Trans United to maintain these vehicles, but according to Grand Namibia, this has not been happening.