OP Gifts NCN $500M in four years

Jun 18, 2012 News

As information continues to surface about the affairs of the National Communication Network (NCN), investigations have revealed that during the years 2008 to 2011 some $499M was turned over in subventions from the State coffers.
The Combined Opposition managed to gut some $81M from the Office of the President subventions for NCN this year.
NCN receives money from the Government on an annual basis through two methods in the Budget, both from Office of the President.
One sum of cash is channeled to the State owned media entity through the Budgetary Line Item for “Subsidies and Contributions to Local Organizations.”
The Budget cuts this year affected $81M stemming from that source of distribution for Office of the President.
The other sum is allocated as Capital Expenditure under monies allocated for such spending.
Current Expenditure in layman’s terms refers to recurring expenditure as in a household where rent, food and utility bills recur monthly.
Capital Expenditure in layman’s terms would be akin to a household deciding to erect a perimeter fence, refurbish a damaged stairway or purchasing a family car.
In 2008 the company received a $50M/$70M allocation amounting to $120M.
The following year in 2009, Office of the President provided NCN with a $70M/$54M provision totaling some $124M.
In 2012 the Office of the President channeled $120M to NCN while last year the company received a $65M/$70M allocation totaling $135M.
Altogether over the past four years the Office of the President has provided NCN Inc with some $499M dollars.
This money is transferred from the nation’s coffers to the company which has been rocked with allegations of massive financial impropriety.
On Thursday last, the Subject Minister Dr Ashni Singh tabled the company’s 2008 audited financial reports which did not help the situation any.
Auditor General (ag) Deodat Sharma in his 2008 Report for the Company was forced to issue what is called a ‘qualified audit opinion.’
A qualified audit opinion has been described by several in the field as “not a good thing,” given that it informs that the audit was either incomplete or that questionable accounting methods were used.
A serious bone of contention raised by Sharma during his audit of NCN in 2008, centered on some $215M reflected on the company’s balance sheet as ‘Accounts Receivable.’
‘Accounts Receivable’ is defined to mean, “Money which is owed to a company by a customer for products and services provided on credit.”
The revelation of more than $200M being reflected in the company’s books as moneys to be received has been flagged by some as a matter that needs further scrutiny.
An economist asked to comment on the audited accounts for the company says that the poor state of its assets, the questionable asset base and large debt base reflect a company that would have been mismanaged while state subventions continued to pour into it.
It was pointed out that only recently one of NCN’s senior officials, Martin Goolsaran admitted to depositing monies meant to be for the company in his personal account.
Sources say that the CEO approved this transaction. NCN’s management therefore ensured that it allowed a system which kept revenues outside of its legal books, meaning that untold volumes of revenues and expenditure for NCN would have been transacted outside of the company’s accounting system.
NCN falls under the aegis of the now controversial National Industrial and Commercial Investments Limited (NICIL) since it was incorporated in 2004.

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OP Gifts NCN $500M in four years

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