A ‘ROADMAP’for recovery is being developed as part of efforts to ensure that the Guyana National Newspapers Limited (GNNL) remains capable of remaining a viable operation. This undertaking is particularly important given that hundreds of persons depend, directly and indirectly, on the company.
The company’s new Board of Directors, working closely with management, has taken steps to analyse the company’s state of affairs and implement measures to address problematic concerns. Some of the existing challenges facing GNNL are, but not limited to, lawsuits, consequences of past mismanagement and the possibility of a financial crisis.

From August 2020 to date, the new management team and Board of Directors have rolled out cost-recovery measures with the aim of staving off a financial crisis that could place almost 100 employees on the breadline.

In the area of management, efforts are moving apace to strengthen the management team of GNNL and improve measures to bolster accountability and transparency. The management team was advised by the Board of Directors to roll out initiatives that would also boost circulation and, by extension, revenues, as well as respond to the needs of stakeholders and customers. Among these initiatives are the introduction of a quarterly supplement that boasts a focus on national development and a business supplement.

Further, to avoid additional court challenges, the Board took steps to introduce training sessions on libel and defamation – sessions that were open to other State entities. Other training is also on the cards.

PULL QUOTE – General Manager of GNNL, Moshamie Ramotar, when asked to comment, said: “We are working hard to realise a turn-around in terms of the company’s finances, and to ensure that there is no recurrence of what took place in the past, bearing in mind that we have an obligation to our employees and to ensure that their welfare is protected. We are committed to this task. With the support of our board and stakeholders, we are confident that the task we have set ourselves will be accomplished.”

LAWSUITS
Among the past occurrences referenced by the General Manager was a deviation from the standard operating procedures and editorial policy, over the past five years, which exposed the GNNL to millions of dollars in liabilities.
Those actions, some of which were directly influenced by officials of the former A Partnership for National Unity + Alliance For Change (APNU+AFC) Coalition administration, exposed GNNL to a slew of legal suits and losses, which continue to negatively impact the company’s ability to meet the demands of the staff and, by extension, customers.

Amidst the slew of claims for defamation and libel, judgements have been awarded against GNNL to the tune of over $50 million. Some of the judgements against GNNL include Yokohama Trading, where the court awarded $12.5 million; Pasha Global, where the court awarded $12.5 million; and Clifton Bacchus, where the court awarded $27.5 million. In these cases alone, GNNL was exposed to claims for over $6 billion.

The Board of Directors of GNNL has since conducted an investigation into the numerous lawsuits, the incidences of conflict of interest of the legal teams representing both claimants and the defendant, and the authorship and board responsibility for the offensive articles that resulted in the lawsuits.
Further, following one of the several lawsuits against GNNL, the company, acting on external directives, made a decision that was not in its best interest. The company was ordered by the former Prime Minister’s office to pay $7 million to the claimant. After the payout was made, Chief Justice (ag), Roxane George, dismissed the very lawsuit which was the basis for the payout.

The judgement was dated July 15, 2020, but the agreement for the payout was done prior to the ruling. The legal suit in reference was filed by Rickford Burke and it was extended to other media agencies as well. The Chief Justice ruled that Burke led no evidence to support the actions brought and resultantly could not substantiate claims that his reputation was damaged in any way. In dismissing the claims, Justice George ordered Burke to pay a total of $400,000 in court costs to the named respondents. While the respondents in the case would have benefitted financially, it was the opposite for GNNL, which incurred an unwarranted expense of $7 million.

INTERFERENCE
The deviation from the editorial policy of the company was reportedly influenced by those politicians who had utilised GNNL as a public relations mechanism to execute their agenda. This was particularly evident during the impasse following the March 2, 2020 General and Regional Elections.
In this regard, the glaring bias in the Guyana Chronicle’s reporting during the electoral process was cited by the European Union (EU) Election Observer Mission (EOM) in its final report on Guyana’s General and Regional elections. The EU’s EOM conducted a quantitative and qualitative media monitoring of a sample of broadcast and print media.

Based on the report, which was issued on June 5, 2020, the state-owned newspaper devoted 83 per cent of its news coverage to the former President David Granger; the former APNU+AFC administration and, at the same time, offered considerable space to letters from persons critical of the People’s Progressive Party/Civic (PPP/C).
Compared to the Guyana Chronicle, the privately owned Guyana Times newspaper dedicated 51 per cent coverage to the coalition and 47 per cent to the PPP/C, while coverage provided by both the Stabroek News and Kaieteur News – also private entities – was described by the EU’s EOM as “rather balanced.”

MISMANAGEMENT
Past actions have also affected GNNL’s current operations, given that there were financial consequences of mismanagement of GNNL’s resources prior to August 2020.

A series of indiscriminate spending was particularly evident between June 2018 and September 2018, when the company had at its helm, a manager, who is a known member of the APNU+AFC Coalition.

Notable infractions during that period were so great that the company’s Board of Directors at that time – comprised mainly of known affiliates of the APNU+AFC – had to commission a special audit of the activities.

This was done by Chateram Ramdihal Chartered Accountants. The audit firm was formally asked by the Board of Directors to conduct a special audit on the overall management and governance of the GNNL in the areas of financial management, human resource management and administrative management for the period June 1, 2018 to September 10, 2018.

The objective of the audit was to determine whether there were mismanagement /excessive spending of funds and whether funds were expended in accordance with relevant principles, rules and regulations, and internal control procedures.
It was revealed that $5,460,897 was spent without proper adherence to the company’s policy.

WAY FORWARD
The mounting liabilities, coupled with the effects of the novel coronavirus (COVID-19) pandemic and other challenges, are not only restricting the company’s ability to provide salary increases and conduct other critical administrative and infrastructure work, but also driving the entity to insolvency.
Nonetheless, the GNNL’s Board of Directors and current management have assured stakeholders that no effort will be spared to secure the success of the company and, by extension, its employees and stakeholders.
This assurance came even as calls are being made for accountability from those responsible for past actions that imperiled the operations of the entity.