State TV, National Communica-tions Network (NCN) registered a profit of $75.9M for 2011 mainly on the back of its government subvention of $70M but its annual accounts for that year earned a qualified opinion over a whopping $913m in non-current assets which could not be verified.
NCN has come under intense scrutiny in the past two years from the opposition because of what is seen to be its unfair coverage and had subventions for the years 2012 and 2013 chopped.
It has however still continued to operate in an unchanged manner. The state broadcaster also came under close examination over payments made to it by the Guyana Telephone and Telegraph Company (GT&T) for its jingle contest in September 2011, some of which allegedly ended up in the private account of its former programme director Martin Goolsarran. The opinion on the accounts for 2011, which was audited by the Auditor General’s Office, makes no mention of any discrepancy or investigation as a result of this occurrence. In 2012, the board of NCN had initiated an investigation which found a variety of transgressions linked to the payments by GT&T and an attempt at a cover-up within NCN. The report on the investigation which was submitted to President Donald Ramotar has not been acted upon but Goolsarran is not on the job.
NCN’s General Manager Mohammed ‘Fuzzy’ Sattaur had tendered his resignation amid the controversy in June 2012.
Net operating revenues for 2011 were $508m compared to $482m in the previous year. Gross profit amounted to $474.5m in 2011 as opposed to $435.4m in 2010. Operating expenses totaled $511m in 2011 compared to $585m in 2010. This left NCN with a net operating loss of $62.1m for 2011 compared to $170m in 2010.
However, NCN was able to register a profit on the basis of interest and other income of $68.1m and its current subvention of $70m. While it registered a profit of $75.9m in 2011 it listed a loss of $28.3m in 2010.
In addition to its current subvention, NCN also received a capital subvention of $65m for 2011. In explaining the basis for its qualified opinion on the 2011 accounts, the Auditor General’s Office said that the amount of $913m was shown as non current assets for the year. “However, the Company did not implement or (maintain) a Fixed Assets Register.
In addition, neither master nor sectional inventories were maintained for the year under review contrary to Stores Regulations. As a result, the accuracy, validity and completeness of the amount of $913,826,660 shown as Non Current Assets could not be verified”. This situation also persisted in 2010 when the figure in question was $811m.
The 2010 and 2011 reports for NCN were tabled in Parliament on Thursday.
