‘NBC doesn’t have enough money’

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'NBC doesn't have enough money'
'NBC doesn't have enough money'

Africa-PressNamibia. THE NBC does not have the required operational budget for this financial year, said spokesperson Umbi Karuaihe-Upi.

Karuaihe-Upi in a press statement on Friday explained that the Namibian Broadcasting Corporation requires a total operational budget of N$386 million per year, consisting of its own generated revenue and subsidy allocation from the government.

The government cut the broadcaster’s annual budget by half in March. The NBC was allocated a subsidy of N$127,5 million for the current financial year, however, the corporation expends an amount of N$32,2 million per month on operations.

“We would like to categorically make it clear that the corporation never overspent their annual budget, but it is rather a matter of not having the required operational budget for the 2021/22 financial year,” she said.

The Namibian recently reported that NBC has already overspent its N$127 million annual budget in the first six months of this year. “There should be a qualitative difference between spending money and overspending money that does not exist,” she said.

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.

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.

“The internal memo circulated to NBC employees forms part of the overall communication update aimed at informing the employees on the business and the financial situation of the corporation,” Karuaihe-Upi said.

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