09 Sep 2019 16:30pm
WINDHEOK, 09 SEP (NAMPA) Technically insolvent New Era Publication Corporation (NEPC) will undergo a complete overhaul in order to cut unnecessary expenditure, realign employee salary structure to meet public enterprises requirements in order to make the entity self-sustaining.
While maintaining that the corporation will not lay off any employees, board chair Esau Mbako told Nampa on Monday that a turnaround strategy for NEPC is imminent, if getting out their current financial quagmire is anything to go by.
According to Mbako, NEPCs financial situation is so dire that the only thing saving it from liquidation right now is the fact that it is parastatal, established via an act of parliament.
[NEPC] is currently technically insolvent. This means that its income vs revenue is not talking to each other. The expenditure far outweighs its income as a going concern. If it was a company registered under the Companies Act of 1973, it would have been liquidated, Mbako said.
To do this, the corporation will among other things hire a human resources (HR) consultant and a substantive chief executive officer (CEO).
At the moment, NEPCs chief concern is exorbitant salaries paid to its managers.
I am busy with the restructuring. Because one (of our challenges is that) the whole executive team, all the salary structure is not complaint with the State-Owned Enterprises Act as per the tiers. We are over the top, he said.
The Mbako-led board further intends to deploy a holistic rigorous approach to ensure that the cash-strapped entity becomes solvent.
We want to have a look at the whole setup of the institution, to [determine] what is necessary and what is not and bring it in line in such a manner that the income sustains the operations of the company, he explained.
Mbako could not say how long the restructuring will but acknowledged that its will be a lengthy process.
We will be looking at a combination between our HR and possibly experts that can help us to have a workable and implementable turnaround strategy where we can cut costs, increase possible revenue streams, he noted.
For now, the jobs of those at the corporation are save.
I am not going to lay off people. I am not to send anybody to the streets. We will look at the realignment so that we live within our means, he said.
The corporation is currently on the hunt of a substantive CEO.
Since the departure of Audrin Mathe in January, Benjamin Jakobs the companys commercial executive - has acted in that portfolio.
The revelations come at a time when the near-bankrupt entity failed to account for N.dollars 33.5 million.
NEPC currently has a tax liability of N.dollars 74 million, and an accumulated unaudited loss of N.dollars 66 million.