Board of Directors at NCN is pressing the company’s Chief Executive Officer to come clean.
The Board of Directors at the National Communications Network NCN is pressing the company’s Chief Executive Officer to come clean on the finances of the company. Now the NCN Board wants the CEO and the financial officer to present to the board the financial statements for transactions carried out by some of the biggest advertisers for the company and they want the documents to represent the past 3 to 4 years this newscast understands.
As this newscast reported weeks ago, the government announced a probe of the finances at NCN following the company’s own admission that it raked in over 500 million dollars in 2011 alone and was still pressing the administration for an 80 million dollar subvention. That subvention was blocked by the opposition parties in parliament which reduced the allocation to 1 dollar saying that since NCN rakes in over half a billion dollar on its own from advertising, the company should not be tapping into the pockets of taxpayers.
It was the NCN CEO who had declared in a letter to the opposition Alliance for Change that the company rakes in over 90% of its income through commercial ventures which represents the airing of ads and tv and radio productions.
Following the budget cuts, the President himself called for there to be a probe of the financial situation at NCN.
NCN which operates the only radio station in the country along with the tv network rakes in more than all of the other tv stations in Guyana combined and although it enjoyed taxpayers money, it still competed with the private tv stations for the advertising dollar.
The company has also been falling out of favour with some of its main advertisiers. GT&T which paid out over 60 million to NCN in 2011 for ads and various productions has considerably cut back doing business with ncn after the company tried to double the amount of money it would charge gt&t for the airing of that company’s cricket finals. That resulted in a tit for tat war of words between the NCN ceo and the ceo of the telephone company which was one of the biggest advertisers on NCN.
The board of NCN capitol news understands also wants to see statements from the ceo and financial offer which represents a number of advertising agencies, how much commission those agencies receive and the relationship between the head of some of those agencies and officials at NCN.
The NCN CEO recently put together a list of recommendations that he wanted the board to approve but the board reports state didn’t find favour with many of his recommendations, some of them asking for more money to be paid for the production of live shows and programmes, some increases stretch way pass the 200% mark. Apparently the board did not agree with any such move when the company could not show clearly its true earnings and where all that money has been going.