State-owned New Era Publication Corporation (NEPC) has recorded accumulating losses amounting to N$42.5 million, while its total liabilities exceed its assets by N$21.1 million, according to its audit report for the 2016/17 financial year.
The corporation also failed to prove to Auditor General (AG) Junias Kandjeke how it used N$33.5 million.
The report was submitted to the National Assembly (NA) by Deputy Minister of Finance, Natangwe Ithete, on Tuesday.
Kandjeke issued an adverse audit opinion to the NEPC for its inability to provide the auditors with financial statements that fairly represent the financial position of the entity.
The AG premised his opinion on the unexplained adjustments amounting to N$13.9 million observed, among a host of other issues.
These include bad debts amounting to N$10.2 million which were written off without approval and overstatement of penalties paid with N$4.3 million during the period under review.
Further, interest paid was understated by N$1.5 million while a difference of N$915,062 was observed between the asset register and the general ledger.
In the meantime, purchases of property, plants and equipment were understated in the cash flow statement with unknown prior year errors amounting to N$121, 244.
When asked about how they plan to turn around the entity’s financial fortunes and run it in a prudent manner, the company’s Chief Financial Officer, Beatus Amadhila, said NEPC is now compliant in terms of Receiver of Revenue tax return filing to avoid penalties.
NEPC has also made arrangements with the Receiver of Revenue to service the debts owed to them which attract high interests.
“Operational cost containment (printing costs which were on the rise) have been reduced without compromising on the print quality and print run [and the] overall operational costs have been contained,” he said in a written response.
In addition, the corporation has vowed to generate sufficient revenue despite the current tough economic conditions.
NEPC is a 100 percent government-owned entity which publishes local daily New Era, and Kundana, a weekly newspaper published in Oshiwambo. - NAMPA