Reports that the Board of the National Communications Network (NCN) was split on the NCN-Merundoi $2.5M settlement are erroneous, the state-owned company said on Tuesday.

Last Friday, NCN was thrown into the spotlight after a forensic audit into its operation revealed that it had written off the $2.5M owed by Merundoi. The auditors alluded to the fact that the out-of-court settlement was reached this year at a time when Merundoi’s Executive Director Margaret Lawrence serves a Director of the owned-company.

In a statement on Tuesday, NCN sought to clear the air on the issue. The company said that Merundoi is a not for profit non-governmental organisation which specialises in behaviourial change communication with the aim of strengthening communities, vulnerable groups and young adults.

Merundoi was established in 2006 under a 5-year PEPFAR programme, however, it continued to function as an NGO through local and international sponsorships, partnerships, and projects.

In March 2012, the organisation approached NCN with a written proposal to make available the production content of Merundoi for broadcasting, with the intention of paying 50 per cent of the normal broadcast charges and NCN absorbing the remaining 50 per cent.

“NCN did not respond favourably or otherwise to the proposal but collected the 50 per cent broadcast fees and aired the programme,” the state-owned entity stated. However, in 2014, the broadcasting company instituted court proceedings against Merundoi for the 50 per cent of broadcast charges.

“On 4th April, 2016, Merundoi made a proposal to pay $250,000, plus agreed to allow NCN access to 2 previous seasons of programme content of “Merundoi”  Radio Serial Drama (over 500 x 15 min episodes) and also to collaborate with NCN to produce a TV Sitcom “Cheap and Sweet”,  the pilot of which it had submitted to NCN since 2012,” NCN further pointed out.

This offer, according to NCN, received the full support of the board during a special meeting on April 7 in the notable absence of Lawrence.

“In arriving at the decision, the Board took account of, among other things, the fact that Merundoi is an NGO, it is not for profit, and it was willing to make the programme content available  to NCN and to collaborate on the production of local TV Sitcom,” the company explained. It is maintaining that reports that the Board’s decision was not unanimous are untrue and erroneous.

The company also used the opportunity to encourage individuals and companies with outstanding revenues to visit its Homestretch Office with the intention of settling all outstanding debts.

“In relation to the auditor’s report that our former CEO Ms. Molly Hassan wrote off millions of dollars of debts by an advertising company, we wish to categorically state that Hassan neither had the authority to do so nor did she write off any debt,” the company stated.

It added: “As CEO, Hassan always acted in accordance with direction of the Board of Directors. In the case referred to she was asked to enquire whether a debt over 3 years old and incurred in 2011 was legally enforceable, which she investigated and advised upon. She did not write off the debt. The debt remains but it is statute barred.”