NBC should get internal auditors: Kavekotora.
State owned Namibian Broadcasting Corporation (NBC) - which over the years failed to prudently utilise state resources - has no internal auditors, something which has irked the Parliamentary Standing Committee on public accounts.
The committee vented its dissatisfaction during a public hearing with the NBC leadership on Monday over the broadcaster's audit report for the 2016/17 financial year.
NBC received an adverse audit opinion from the Auditor General during that financial year, meaning that the Corporation financial statements were misrepresented, misstated, and did not reflect its financial performance at position.
According to the committee's chairperson and President of the Rally for Democracy and Progress (RDP) Mike Kavekotora, it is disappointing for an institution that has for years failed to account State resources does not to have the critical department - referring to internal auditors.
NBC, however cited financial constraints as a reason for not having an internal audit department.
Kavekotora stressed that the Corporation systems of internal control are lacking, which is leading to the continuous adverse audit opinion annually.
'The auditors are saying NBC cannot account, its financial statement is not a true reflection of the corporation financial holistic year on'
At the same occasion NBC's Director General Stanley Similo, noted that the corporation sourced out its internal auditing course to KPMG audit firm to ease financial cost on the entity's, given if they have to own an internal audit depart.
Similo, however could not indicate how much the corporation would have spent on its own audit firm subdivision and how much it currently pays to KPMG for its audit labour.
'The lack of a sustainable internal audit function is biting us and management has also identified it as one of the hitches in the system. Now is a matter of an intervention with the board so that we can have a sustainable way of doing our auditing,' he noted
Equally, Committee member Nico Smith noted that the only way for the NBC to intensely solve its financial problem which has been inherited yearly is to have a permanent inhouse auditing department, which he advised that it do regular short-term auditing.
The Committee also painted a bleak picture of NBC's future, saying it is currently technically insolvent and is not in the financial position to meet all its financial obligations.
The Committee will meet the NBC management, board and line minister to chart the Corporation's future at a date soon to be announced, Kavekotora said in his concluding remarks.
'NBC needs a serious structural reform,' he said.
|Printer friendly Cite/link Email Feedback|
|Publication:||The Namibia Press Agency NAMPA (Windhoek, Namibia)|
|Date:||Aug 19, 2019|
|Previous Article:||Alleged boyfriend murderer back in court at Keetmanshoop.|
|Next Article:||SADC leaders concerned about slow growth in intra-SADC trade.|