NBC sinking in red ink

THE Namibian Broadcasting Corporation (NBC) may soon find itself in a situation where downsizing and retrenchments are unavoidable, unless Government steps in to rescue the embattled broadcaster.

Escalating financial problems, a high staff turnover, and technical equipment that is either obsolete or constantly breaks down are just some of the factors that have driven the corporation into an absolute state of emergency. The Namibian has reliably learned that the NBC’s top structure hopes to schedule a meeting with President Hifikepunye Pohamba and Cabinet to discuss the corporation’s plight.The NBC apparently hopes that strides made in its management since Director General (DG) Bob Kandetu’s appointment has given it more leverage than before to ask for such assistance.Some of the successes include cutting the corporation’s monthly expenditure from N$13 million to N$11,2 million in the last 10 months, increasing advertising income from N$17 million to N$23,9 million since last year, and collecting between N$50 000 and N$60 000 a month in TV licences, something that has never happened in the history of the NBC.Contacted about the alleged planned request to Cabinet, Kandetu told The Namibian that no such request had been made yet.He instead referred to a number of targets Cabinet has set for the NBC, including setting up a prudent business plan and putting proper systems in place to control the corporation’s finances.The corporation was currently engaged in meeting these requirements, he said.But these improvements are understood to be overshadowed by the problems facing the corporation – and could even end up being cancelled out by them.While the corporation has an annual operational budget of N$150 million, it has an income of N$90,8 million, it is understood.Sources also indicate that plans have been drawn up that entail reducing the operational budget to N$120 million – but should this happen, a number of programmes are likely to be negatively affected.The corporation’s poor financial condition, its high staff turnover, and the fact that it has for the past four years failed to honour a promise to grant salary increases to staff, have also apparently led to understaffed departments.The department that is especially affected are said to be the News and Current Affairs, where reporters are apparently being asked to work double shifts and are often denied leave.Other ideas being considered to save costs are said to include stopping indigenous-language news bulletins and closing more satellite offices, as has been done in the past.Through these measures, the NBC apparently hopes to save on personnel, operational, and freelance employees’ costs.During debate on the National Budget earlier this year, Information Minister Netumbo Nandi-Ndaitwah said that the closing down of NBC regional offices last year had not helped much in reducing costs.”Unless some measures are taken to relieve the NBC of its debt, like increasing the Government subsidy to enable debt servicing or Government taking over to ring-fence the debt, we should not expect the NBC to effectively fulfil its national mandate,” the minister said then.Government approved N$62,6 million for the NBC in its Budget this year – N$200 000 less than last year.The Namibian has reliably learned that the NBC’s top structure hopes to schedule a meeting with President Hifikepunye Pohamba and Cabinet to discuss the corporation’s plight.The NBC apparently hopes that strides made in its management since Director General (DG) Bob Kandetu’s appointment has given it more leverage than before to ask for such assistance.Some of the successes include cutting the corporation’s monthly expenditure from N$13 million to N$11,2 million in the last 10 months, increasing advertising income from N$17 million to N$23,9 million since last year, and collecting between N$50 000 and N$60 000 a month in TV licences, something that has never happened in the history of the NBC.Contacted about the alleged planned request to Cabinet, Kandetu told The Namibian that no such request had been made yet.He instead referred to a number of targets Cabinet has set for the NBC, including setting up a prudent business plan and putting proper systems in place to control the corporation’s finances. The corporation was currently engaged in meeting these requirements, he said.But these improvements are understood to be overshadowed by the problems facing the corporation – and could even end up being cancelled out by them.While the corporation has an annual operational budget of N$150 million, it has an income of N$90,8 million, it is understood.Sources also indicate that plans have been drawn up that entail reducing the operational budget to N$120 million – but should this happen, a number of programmes are likely to be negatively affected.The corporation’s poor financial condition, its high staff turnover, and the fact that it has for the past four years failed to honour a promise to grant salary increases to staff, have also apparently led to understaffed departments.The department that is especially affected are said to be the News and Current Affairs, where reporters are apparently being asked to work double shifts and are often denied leave.Other ideas being considered to save costs are said to include stopping indigenous-language news bulletins and closing more satellite offices, as has been done in the past.Through these measures, the NBC apparently hopes to save on personnel, operational, and freelance employees’ costs.During debate on the National Budget earlier this year, Information Minister Netumbo Nandi-Ndaitwah said that the closing down of NBC regional offices last year had not helped much in reducing costs.”Unless some measures are taken to relieve the NBC of its debt, like increasing the Government subsidy to enable debt servicing or Government taking over to ring-fence the debt, we should not expect the NBC to effectively fulfil its national mandate,” the minister said then.Government approved N$62,6 million for the NBC in its Budget this year – N$200 000 less than last year.