— company owed over $195M, $16M by APNU+AFC alone
— financial support not ruled out, staffers urged to redouble efforts to ensure turnaround

By Navendra Seoraj
LACK of prudent management has driven state-owned television and radio broadcasting corporation, the National Communications Network (NCN), to its ‘knees’, as the company is on the brink of financial collapse.

NCN was formed in 2004 through the merger of the government radio service, Guyana Broadcasting Corporation, and the government-run television service, GTV, and since then has been reaching ears and eyes across the country.

The company is, however, faced with what might be its biggest challenge yet, lack of physical resources and financial deficit, a situation which Minister of Public Affairs, Kwame McCoy described as “frightening”.

“The situation at NCN is very frightening… large sums of money in the triple digit numbers, over $195 million owed to the company… in this particular period where the COVID-19 situation affects revenue flow… this company has been receiving government subvention and it has been so for a while, but when you examine what the company has, in terms of finances, it is in a very terrible situation,” Minister McCoy said during a virtual press briefing, on Thursday.
This was uncovered following a rapid financial and management review of key state agencies, which was conducted by a team appointed by President Irfaan Ali.
Minister McCoy said NCN is owed $190 million by advertisers alone. Among those indebted to the company is the A Partnership for National Unity and Alliance For Change (APNU+AFC) coalition, which owes $16 million.

The coalition, which was unseated as government by the People’s Progressive Party/Civic) early this month, was the only political party on the list of debtors. There were, however, multiple state agencies and ministries which were said to be indebted to the company.
“People owe money to the company and we have since asked them (management) to intensify the effort to collect money so that we could have money to do critical things,” said Minister McCoy.

He encouraged persons, who consider themselves clients and well-wishers of the company, to help improve the financial situation.

FINANCIAL SUPPORT NOT RULED OUT
The minister said government support, in the form of a subvention/increased subvention, has not been ruled out, but the company still has a huge task ahead to ensure that it “rakes in” advertising revenue through creative measures.

In terms of other physical challenges, there has been degeneration of tools and equipment, and this affects the productivity of the company.
Minister McCoy said the company has three vehicles which could transport staff, but none of those vehicles are working. Instead, the company had contracted vehicles at $7,000 a day when it could have fixed those vehicles for $80,000-$100,000.

“There has been total mismanagement… we need to look beyond those problems… we are working to find things and fix things… we are working on initiatives to get things going and make the situation better,” said the minister.

Employees of the company have since committed to working hard, in order to improve the situation, financial and otherwise that exists.
Minister McCoy, who also has oversight for the Guyana National Broadcasting Authority (GNBA), the Department of Public Information (DPI) and the Guyana National Newspapers Limited (GNNL), said an assessment of those companies also revealed critical issues which need to be fixed.
“In an examination of these agencies, we found a lack of prudent financial management; nepotism where the entities were flooded with friends and family; there were poor working conditions; and polarisation of staff,” he lamented.

In the case of GNNL, the company was subject to a period of “gross” mismanagement under two separate general managers, who were not identified. Over at DPI, there were also significant management deficiencies.

“We found levels of staff, which we will refer to as top heavy… it was just about providing opportunities to friends and family… critical matters to address were left lagging and we found a situation where we have reorganised and retooled, but we need to find new management that will take us to the level of success we desire,” said Minister McCoy.

Government is actively examining ways which those agencies can be salvaged through financial management interventions. Persons have already been temporarily appointed to head NCN and GNNL, to start this process.

In the next few weeks, government will be making critical decisions and “putting in the work” to ensure that Board of Directors for NCN and GNNL are appointed, so that the “real work” can begin.

Minister McCoy’s ministry will also be examining the public relations units of the various ministries.