PAC hears about financial irregularities in public media

SOURCE- $Zambia_Daily_MailThe latest Auditor General’s report has revealed gross financial and management irregularities in the public media, showing much of the revenues going to staff related costs.

And members of the parliamentary Public Accounts Committee (PAC) have observed the gross financial and management irregularities in public media organisations almost rendered the these institutions insolvent.

The Zambia National Broadcasting Corporation (ZNBC) and the Zambia Daily Mail have both been cited in the Auditor General’s report for various financial and management irregularities that range from unretired impress to inadequately supported payments and wrong
administration strategies.

The Times of Zambia has been cited for a verbal contractual obligation with the Zambia Daily Mail which was entered during the 2011 campaign for the general elections.

The development came to light today when Information Permanent Secretary Amos Malupenga and ZNBC and Zambia Daily Mail teams appeared before the Mwansa Mbulakulima chaired PAC at separate intervals.

According to the Auditor General’s report, ZNBC incurred losses of about K12.7 billion in 2009, K15.6 billion in 2010 and 24.8 billion in 2011. The losses were mainly attributed to administrative expenses which increased from K46.6 billion in 2009 to K68.6 billion
in 2011, representing an increase of 47 percent.

ZNBC management has justified that the worsening profit situation was mainly due to the fact that advertising revenue was not sufficient to meet the huge costs associated with a public broadcaster.

ZNBC Director General Chibamba Kanyama told the committee that TV levy compliance level, which is at 20 percent, has not helped much to improve the financial position of the corporation.

Mwinilunga West Member of Parliament, Elijah Muchima, said ZNBC and Zambia Daily Mail were insolvent adding that they could have been liquidated if they were ordinary firms.

And government has said the public media requires recapitalisation which however, will only be taken once the management system has fully been improved.

Ministry of Information and Broadcasting Services Permanent Secretary Amos Malupenga said government has since taken measures to ensure that the management of the national broadcaster and other public media were not compromised or interfered by politicians.

Mr. Malupenga noted that there was too much political interference in the running of the public media by its stakeholders.

He said this interference led to management failing to make neutral decisions on important matters.

He said this further led to the corporation to be sued by various people and organisations who felt injured and defamed by the documentaries that were aired because of directives from stakeholders.

And commenting on the ZNBC board, Mr. Malupenga said the process of appointing the board of directors has started adding the delay to constitute this board was as a result of an omission that was made in process.

The Permanent Secretary assured the committee that his ministry will expedite the process to ensure that the board is put in place.

He said currently, there was a caretaker board which is ensuring that things are moving well at the corporation.

Mr. Malupenga further explained that ZNBC has now improved its coverage and management following the measures that were introduced to ensure that it performs its role of a national broadcaster.

Meanwhile, the Zambia Daily Mail management was taken to task for financial irregularities that included a verbal contractual agreement it entered with the Times of Zambia.

This verbal contractual agreement amounted to over K1.3 billion.

The Auditor General’s report disclosed that a review of the customer detailed ledgers revealed that Times Printpak Limited owed Zambia Daily Mail amounts totalling over K1.3 billion for printing the Times of Zambia newspapers.

The report further shows that there was no contract entered into with the Times Printpak Limited making it impossible to ascertain the terms.

But when asked for clarity, Zambia Daily Mail Company Secretary George Zulu said the verbal contract was entered based on instructions from a former Permanent Secretary, who worked with a joint technical committee and not management.

But when asked further by Chama Member of Parliament January Zimba, Mr. Zulu disclosed that the committee was chaired by the Deputy Managing Director and the Director Finance who was also present at the Public Accounts Committee.

Mr. Malupenga was however hesitant to handle the matter of the verbal contract as there was no documentation despite the Times of Zambia referring the whole matter to his office after it refused to pay the sister company.

But the Deputy Auditor General Regina Chilupula advised the concerned teams to seek legal advice from the Attorney General so that the matter is resolved while Lubansenshi MP Patrick Mucheleka suggested that the Permanent Secretary should in his powers ask the Daily Mail to write-off the debt.