14 Mar 2019 16:10pm
WINDHOEK, 14 MAR (NAMPA) The New Era Publication Corporation (NEPC) has attributed its insolvency to the debts it owes to the Receiver of Revenue, printing cost and escalation of operational expenses.
This was the explanation given by NEPCs chief financial officer (CFO), Beatus Amadhila in an interview with Nampa on Wednesday, when he responded to questions on the current financial predicament the entity finds itself in.
The cause of our insolvency is basically due to the debts we owe the Receiver of Revenue. Once that is cleared, the corporation shall be in sound financial position, Amadhila said.
At the moment, the NEPC sits with accumulated losses of N.dollars 42.5 million and liabilities that exceed its assets by N.dollars 21.1 million.
While NEPC is not a commercial entity set up to solely target profit, our aim is to break even annually. [In] 2011, 2012 and 2013, NEPC made losses and in 2014 and 2015 NEPC recorded surpluses, the CFO said.
However, in 2016, NEPC made losses amounting to N.dollars 32.6million.
Amadhila attributed the losses to the escalation in operation expenses, printing cost totaling N.dollars 18.1 million, penalties expenses at N.dollars 14.7million - due to prior years non submissions of returns to receiver of revenue and capital expenses of N.dollars 5 million.
To restore NEPCs ability to meet its immediate financial obligations, deal with the accumulated losses and to run it prudently and sustainably, Amadhila listed numerous interventions that they have since been deployed.
Chiefly, they want to ensure that the parastatal is compliant with the Receiver of Revenues tax returns filing to avoid penalties.
The company has also reduced its printing cost but without compromising on the print quality and print run.
Overall operational cost has been contained [and] revenue generation [has been prioritised] amid tough economic conditions, he said.
A report by Auditor General (AG), Junias Kandjeke tabled in the National Assembly on Tuesday posited that during the 2016/17 financial year, the company paid N.dollars 54.4 million in employees salaries, wages, bonuses and other benefits.
The company, during the same period, generated N.dollars 12.5 million from newspaper sales and N.dollars 52.5 million through advertising.
The corporation also received an adverse audit opinion for its failure to prove to the Office of the AG how it used N.dollars 33.5 million during the 2016/17 financial year.
In that report, Kandjeke described NEPC's ability to meet its financial obligations as a going concern.
On Kandjekes adverse audit opinion, Amadhila lamented the findings but promised significant improvements in future audit report.