New Era records N$3,5 m loss

THE Government-owned newspaper New Era recorded substantial losses in the financial year ending March 2006 despite a large financial injection from the National Budget.

The net loss increased to N$3,57 million compared to only N$1,69 million the previous year, notes the annual report of New Era, which was tabled by Information Minister Netumbo Nandi-Ndaitwah in Parliament on Tuesday. New Era projected a loss of N$731 183, but instead suffered a phenomenal loss of N$3,57 million, which is 488 per cent more than it budgeted for.The loss is close to the Government subsidy which was N$4 million in the year under review.”No provision was made for bad debts, whereas a substantial bad debt was incurred.Under-budgeting of expenses, mainly staff costs, occurred due to inexperience in budgeting for a daily newspaper,” according to the report.Government pumped N$4 million in taxpayers’ money into New Era for operating costs; although substantial it was less than the N$5,8 million the newspaper received from State coffers the previous financial year.Newspaper sales for the year were reported as N$1,09 million, up from N$823 752 the year before, and advertising income was given as N$6,38 million compared to N$5,06 million.Printing costs amounted to N$2,64 million, fractionally higher than the N$2,48 million the year before.However, the report did not mention the average number of copies printed per issue.Administrative costs came to N$11,4 million, up from N$9,7 million in 2005.According to New Era board chairman Vilbard Usiku, “the spill-over effect of past inadequate operational and financial management of New Era is regrettably evident in the financial performance”.A major challenge for the Board was to “ensure that policies, especially the editorial policy, are strictly adhered to and respected by all role players”.The new Chief Executive Officer of New Era, Sylvester Black, who assumed the post during the second half of the period under review, said in the report that the Government newspaper sought to adhere to the highest journalistic standards and to mould a highly motivated and disciplined news team.”New Era has some of the best reporters in the country,” according to Black.”Their skills and competency levels as well as entrepreneurship hold great hope for the newspaper.”Distribution of copies increased “to have the paper available in some small rural towns and villages where other papers do not bother to go”, Black claimed.No figures were provided for the newspaper’s joint venture with the Zimbabwean government, a weekly regional newspaper known as The Southern Times.New Era projected a loss of N$731 183, but instead suffered a phenomenal loss of N$3,57 million, which is 488 per cent more than it budgeted for.The loss is close to the Government subsidy which was N$4 million in the year under review.”No provision was made for bad debts, whereas a substantial bad debt was incurred.Under-budgeting of expenses, mainly staff costs, occurred due to inexperience in budgeting for a daily newspaper,” according to the report.Government pumped N$4 million in taxpayers’ money into New Era for operating costs; although substantial it was less than the N$5,8 million the newspaper received from State coffers the previous financial year.Newspaper sales for the year were reported as N$1,09 million, up from N$823 752 the year before, and advertising income was given as N$6,38 million compared to N$5,06 million.Printing costs amounted to N$2,64 million, fractionally higher than the N$2,48 million the year before.However, the report did not mention the average number of copies printed per issue.Administrative costs came to N$11,4 million, up from N$9,7 million in 2005.According to New Era board chairman Vilbard Usiku, “the spill-over effect of past inadequate operational and financial management of New Era is regrettably evident in the financial performance”.A major challenge for the Board was to “ensure that policies, especially the editorial policy, are strictly adhered to and respected by all role players”.The new Chief Executive Officer of New Era, Sylvester Black, who assumed the post during the second half of the period under review, said in the report that the Government newspaper sought to adhere to the highest journalistic standards and to mould a highly motivated and disciplined news team.”New Era has some of the best reporters in the country,” according to Black.”Their skills and competency levels as well as entrepreneurship hold great hope for the newspaper.”Distribution of copies increased “to have the paper available in some small rural towns and villages where other papers do not bother to go”, Black claimed.No figures were provided for the newspaper’s joint venture with the Zimbabwean government, a weekly regional newspaper known as The Southern Times.