ZBC Chief executive Officer (CEO), Patrick Mavhura and other members of the national broadcaster appeared before the parliamentary committee on Media, Information and Communication Technologies, Postal Services and Cyber Security to give oral evidence on the implementation of the KPMG Forensic Audit Report resolutions. The audit was recommended by the government as a restructuring exercise.
By Pearson Mbendera
“We have been going through a restructuring exercise that was triggered by the corporation’s inability to pay salaries for seven consecutive months and the dissolution of the Board of Directors chaired by Cuthbert Dube,” said Mr Mavhura
Based on the turn around strategy of the report, ZBC embarked on a staff rationalization exercise that resulted in 485 people losing their jobs and the realization of an unaudited profit of $267,072 for the period ending 2017.
A huge legacy debt of $66 million still hangs over ZBC and they are hoping that the government will take over that debt or that the debt will be warehoused and be paid later while in the interim, ZBC concentrates on the current obligations. Of the $66 million, ZBC has only been able to pay $1 million, meaning that the debt now stands at $65 million.
The initial audit was supposed to be simply a forensic audit looking at the transactions but ended up providing a turnaround strategy for the organization.
The broadcaster made a loss of $16 million in 2013, and following the implementations of the KPMG audit resolutions, the
Under the previous management, ZBC going concern status was in doubt because of the losses and a bloated payroll that far outweighed the revenues being generated by ZBC.
The revenue generation part of the company has gone up with advertising revenue going up by 28% and license fees revenues also going up due to the many partnerships the broadcaster has formed with orgnaisations such as the Zimbabwe National Road Administration (ZINARA) which has been helping in the collection or license fees.
At the moment, the digitization process being carried out by the government will see ZBC launching six new television stations, meaning that they will be able to generate more money and in turn, make more profits.