14 Mar 2019 14:10pm
WINDHOEK, 14 MAR (NAMPA) The New Era Publication Corporation (NEPC) has accumulated losses amounting to N.dollars 42.5 million, while its total liabilities exceed its assets by N.dollars 21.1 million.
The corporation also failed to prove to Auditor General (AG) Junias Kandjeke how it used N.dollars 33.5 million according to the parastatals audit report for the 2016/17 financial year.
The report was submitted to the National Assembly (NA) by Deputy Minister of Finance, Natangwe Ithete on Tuesday.
Kandjeke in the report said the ability of the corporation to continue as a going concern is dependent on a number of factors.
The most significant of these is that the directors continue to procure funding for the ongoing operations for the corporation and that the subordination agreement referred to in the notes of these annual financial statements will remain in force for as long it takes to restore the solvency of the corporation, the AG said in the report.
Kandjeke furthermore issued an adverse audit opinion to the NEPC for its inability to provide the auditors with financial statements that fairly represent the financial position of the entity.
The AG premised his opinion on the unexplained adjustments amounting to N.dollars 13.9 million observed, among a host of other issues.
These include bad debts amounting to N.dollars 10.2 million which were written off without approval and overstatement of penalties paid with N.dollars 4.3 million during the period under review.
Further, interest paid was understated by N.dollars 1.5 million while a difference of N.dollars 915 062 was observed between the asset register and the general ledger.
In the meantime, purchases of property, plants and equipment were understated in the cash flow statement with unknown prior year errors amounting to N.dollars 121 244.
When asked about how they plan to turn around the entitys financial fortunes and run it in a prudent manner, the companys financial chief financial officer Beatus Amadhila said NEPC is now compliant in terms of Receiver of Revenue tax return filing to avoid penalties.
NEPC has also made arrangements with the Receiver of Revenue to service the debts owed to them which attract high interests.
Operational cost containment (printing costs which were on the rise) have been reduced without compromising on the print quality and print run [and the] overall operational costs have been contained, he said in a written response.
In addition, the corporation has vowed to generate sufficient revenue generation amid the current tough economic conditions.
NEPC is a 100 per cent government-owned and owns local daily newspaper New Era and Kundana, a weekly national national newspaper published in Oshiwambo.