State media gobble up Information budget

TAXPAYERS have to cough up more than N$134 million to keep the state media up and running for the 2012/2013 financial year, which is an increase of about nine per cent compared to last year.

However, if the NBC gets its way with its planned restructuring process, an additional amount of more than N$480 million is needed.Adding to that, the change-over from analogue to digital television broadcasting will require another N$380 million over the next three years.Information and Communication Technology Minister Joel Kaapanda requested Parliament to approve an amount of N$305,4 million for the operations of his Ministry, which includes the state media, for this financial year.About 44 per cent of this money will be used for the NBC, New Era, Nampa and The Southern Times newspaper. According to Kaapanda the NBC is one of the key pillars of Namibia’s democracy and a channel for robust debate on socio-economic policy issues and dissemination of information. However, several MPs including ministers lashed out at the way the national broadcaster conduct its business, and questioned the impartiality of its news coverage.Kaapanda said through an ongoing transformation process, a new board and new director general will drive the process of transformation. The corporation is now seeking approval from the State-Owned Enterprise Board to be considered for restructuring.NBC board chairman Sven Thieme informed Kaapanda that this process may be protracted and will have serious financial and operational implications for the corporation.In terms of its business plan submitted to the SOEs Board, the NBC has accumulated debts to the tune of N$284 million in respect of unpaid employee tax deductions (N$215 million), VAT (N$61 million) and unpaid contributions to the NBC Pension Fund (N$8 million).’The NBC has been and will run at a deficit without a substantial increase in Government investment. At the moment the NBC is in dire straits. To be able to turn the ship around and make this a success, there is a requirement for serious investments into the NBC operations in the form of an immediate cash flow as well as future funding,’ the NBC business plan says.The monthly operational expenditure amounts to about N$16 million, while its own revenue generated monthly is about N$3,5 million. At present the Government funds about 71 per cent of the NBC’s budget, while the corporation only covers 29 per cent of its expenses through its own revenue.During this financial year the NBC will receive a subsidy of N$108 million, Nampa N$15 million and New Era and The Southern Times N$5,6 million each.