Africa-Press – Namibia. THE NBC has already overspent its N$127 million annual budget in the first six months of this year, spokesperson Umbi Karuaihe-Upi yesterday revealed.
The government cut the broadcaster’s annual budget by half in March, but the company needs about N$30 million per month to fully operate. The Namibian Broadcasting Corporation (NBC) was allocated N$334 million for the 2020/21 financial year.
This financial constraint has led to NBC director general Stanley Similo announcing a number of adjustments in a recent circular, including the possibility that there may not be sufficient funds to cover employees’ third-party payments.
“The reduced budget for the 2021/22 financial year may have an impact on the NBC’s third-party payments, meaning the NBC may not have enough monthly cash flow or disposable cash to honour some or all of these payments,” Similo told employees.
Third-party payments refer to employer and employee contributions relating to the NBC’s retirement fund, medical aid scheme, tax and social security payments, Namibia Training Authority levies, and home-loan payments.
“As at the date of this writing, all third-party payments had been honoured,” Similo said. He said employees’ payslips would, however, indicate monthly theoretical deductions.
“However, such does not mean that an actual cash deduction has been effected or transferred to third parties, as payment is dependent on the availability of cash,” Similo told employees. He promised that the NBC would still honour all its obligations once funds are available from its own revenue and the government’s subsidy.
Similo said they are yet to receive full clarification around the corporation’s shortfall of N$207 million “ . . . which came about as a result of the cut in subsidy, and would be resolved from the government’s perspective. The board and management are continuing to engage the ministries of information and communications technology and of finance regarding this matter,” the circular read.
Similo also informed employees that as of next year April, the number of leave days to be paid out to them has been amended to 45. “The NBC is paying out 90 days when staff members leave its service. Unfortunately, staff members are accumulating a huge number of leave days in violation of the NBC leave provisions and the Labour Act,” the circular stated.
The corporation further discontinued ‘notch’ increases for qualifying staff. These increases differ from normal annual salary increases. “In view of the current financial situation, this practice has also been revisited and now discontinued effective as of 1 April 2021,” Similo said.
Earlier this year, NBC board members stressed that the national broadcaster, which has debts amounting to N$280 million, is in no position to afford salary increments.
The bulk of its debt, which involves N$253 million, relates to the pay-as-you-earn scheme, while N$27 million relates to trade payables and third parties.
NBC board chairperson Lazarus Jacobs has in the past hinted the corporation may be forced to retrench some of its workers if the current financial situation does not improve.
