19 Aug 2019 18:50pm
WINDHOEK, 19 AUG (NAMPA)- State-owned Namibian Broadcasting Corporation (NBC) which has failed to prudently utilise state resources over the years- has no internal auditors, something which has irked the Parliamentary Standing Committee on public accounts.
The committee expressed its dissatisfaction during a public hearing with the NBC leadership on Monday over the broadcasters audit report for the 2016/17 financial year.
NBC received an adverse audit opinion from the Auditor General during that financial year, meaning that the Corporation financial statements were misrepresented, misstated, and did not reflect its financial performance.
According to the committees chairperson and President of the Rally for Democracy and Progress (RDP), Mike Kavekotora, it is disappointing for an institution that has for years failed to account State resources does not to have the critical department referring to internal auditors.
NBC, however cited financial constraints as a reason for not having an internal audit department.
Kavekotora stressed that the corporations systems of internal control are lacking, which is leading to the continuous adverse audit opinion annually.
At the same occasion NBCs Director General, Stanley Similo, noted that the corporation outsourced its internal auditing course to KPMG audit firm to ease financial cost that would arise from having its own internal audit department.
Similo, however, could not indicate how much the corporation would have spent on its own audit firm subdivision in contrast to how much it currently pays to KPMG.
The lack of a sustainable internal audit function is biting us and management has also identified it as one of the hitches in the system. Now is a matter of an intervention with the board so that we can have a sustainable way of doing our auditing, he noted
Equally, Committee member Nico Smith noted that the only way for the NBC to intensely solve its financial problem, which has been inherited from one year to the next is to have a permanent in-house auditing department.
The Committee also painted a bleak picture of NBCs future, saying it is currently technically insolvent and is not in the financial position to meet all its financial obligations.
The Committee will meet the NBC management, board and line minister to chart the Corporations future at a date soon to be announced, Kavekotora said in his concluding remarks.
NBC needs a serious structural reform, he added.