PPP/C, Kashif & Shanghai, Hits & Jams among top 20 companies indebted to NCN- Audit Report reveals

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The People’s Progressive Party/Civic, Kashif and Shanghai and Hits and Jams Entertainment, are among the top 20 companies that still owe the state owned National Communications Network  (NCN) Inc. a recently released audit report has revealed.

The report, which can be obtained from the Ministry of Finance’s official website said the PPP/C has a balance of over nine million dollars for the entity and the party’s media centre owes over six million dollars.

In addition to this, the balance of over 17 million dollars owed by Impressions, the report revealed, represents campaign ads placed for the PPP for the 2011 Regional and General Elections.

The report pointed out that there is no evidence that the Company made efforts to recover this debt. It noted instead that The Finance Manager advised that letters were sent by the Debt Recovery Department on November 10, 2011, December 13, 2011 and November 29, 2013, however actual copies of these letters were not available for the auditors to exam.

Also, there is no evidence that legal action was initiated to recover this debt from the customer.

 

Chief Executive Officer, Molly Hassan on April 16, 2015 wrote a memo to the Board of

Directors to have the amount written off as uncollectable as per section 6 of the Limitation Act,

Chapter 7:02, laws of Guyana. Once again, there is no evidence that the CEO sought legal advice from the Company’s  lawyer, Ms. Jaya Manickchand.

“It should be noted that NCN usually make payments for services provided by Impressions. No

effort was made to off- set payment for such services against amounts due from Impressions,” it stated.

 

 

NCN also incurred legal fees to recover debts through the Courts. In two instances (Hits & Jams Entertainment – $7,913,193 and Kashif & Shanghai – $2,046,703) which the court ruled in favour of NCN, however, the Board of Directors at a meeting held on March 10, 2015, according to the report, decided not to enforce the judgment and failed to recover the debt.

For these two matters, the state entity incurred legal fees in excess of 1.2 million dollars. The report stated further that there is inadequate evidence to confirm that significant efforts were made to collect the outstanding debts.

 

 

Below is the table of the top 20 companies with outstanding debts as listed by the report.

 

Name 31.12.2011 31.12.2012 31.12.2013 31.12.2014 31.05.2015
G$ G$ G$ G$ G$
Impressions 17,317,686 17,317,686 17,317,686 17,525,326 17,525,326
Ministry of Health   8,495,996   9,125,527 10,885,207 12,805,935 11,795,765
Peoples Progressive Party / Civic       (26,100)       (26,100)       (26,100)          –   9,523,248
Modern Media Advertising Agency    8,311,815 19,586,189    9,934,963   6,477,020   8,850,943
U Mobile Cellular Inc    4,965,505   6,231,259    4,652,390   7,812,363   8,153,973
Hits & Jams Entertainment    3,809,644   7,913,193    7,913,193   7,913,193   7,913,193
Media Centre (PPP/C)    6,344,300   6,344,300    6,344,300   7,400,260   6,344,300
Beepat’s    4,020,508   4,350,829    5,478,465   4,149.913   5,259,864
Guyana Telephone & Telegraph Company  16,502,850      358,458    8,787,478   1,296,140   4,004,222
Brutal Tracks Recording Studio    1,992,239   3,294,407    3,378,579   3,378,579   3,378,579
King Advertising Limited    7,812,536 10,029,392    7,189,147   4,531,346   3,054,656
Merundoi Inc.       809,114   1,150,086    1,952,006   2,713,343   2,713,342
Ministry of Tourism, Industry & Commerce    1,811,579   1,102,943    2,040,935   2,024,895   2,220,123
Guyana Water Inc.    1,618,350   2,113,152    1,723,302   2,698,279   2,117,555
Kashif & Shanghai    1,497,907   2,046,703    2,046,703   2,046,703   2,046,703
The Guyana Learning Channel           –     (269,723)    1,121,539          –   1,769,635
Wireless Connection    4,196,760   4,242,693    1,745,412   1,745,412   1,745,412
Caribbean Fire Fest Production         25,828   1,650,222    1,650,222   1,650,222   1,650,222
Ministry of Health – Chronic Diseases    3,500,416   3,953,512    3,953,512   1,330,984   1,330,984
Guyana Oil Company    1,717,601   1,591,625    1,295,593   1,560,305   1,261,953

 

 

 

The audit also revealed that a total of 35 media monitors were employed by NCN during the period 2011 to May 2015. During the period 2011 to May 2015 NCN expended close to 29 million dollars on media monitors.

 

 

While these employees were contracted by NCN, they were not located at NCN neither did they perform any duties for NCN or report to any official at NCN, instead these individuals reported directly to former Press and Publicity Officer, Kwame Mc Coy at the Office of the President.

 

The report said Mc Coy would write to the NCN human resource manager when changes were required and on a monthly basis all employees were required to submit an invoice for payment to NCN. The media monitors were required to uplift payments from the NCN’s head office.

 

The report also noted that General Secretary of the PPP, Clement Rohee’s daughter, Renata Rohee was a media monitor.

 

 

 

 

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