State owned broadcaster, Fiji Broadcasting Corporation has raised concern that the Auditor General’s Office has failed to put their comments in the latest Auditor General’s report.
The 2014 report which has been tabled in parliament highlights that FBC has been incurring losses for the last four years - $516,943 loss in 2010, $1.137 million loss in 2011, $7.1 million loss in 2012 and $5.6 million loss in 2013.
The Auditor General’s report states that FBC may need some expert review of its business operations to identify areas that may need to be streamlined to reduce its business costs.
In a press conference this afternoon, FBC Chief Executive Officer, Riyaz Sayed-Khaiyum said they urge the Auditor General’s office to seriously review its recommendations.
He has called them to get views and comments of the entities concerned and actually consider and include them in their conclusions.
He said if this is not done, it infringes on the rights of such entities.
Riyaz Sayed-Khaiyum further claims that Communications Fiji Limited had an agenda by highlighting contents of the Auditor General’s reports and not getting the FBC’s comments.
The Auditor General’s reports are public documents after they are presented in parliament.
The reports were tabled earlier this month and they are also on the parliament website.
The Auditor General highlighted that FBC’s major component of the liability is interest bearing borrowings of $19.4 million in 2013 guaranteed by the government.
The audit said FBC recorded a net loss of $7.1 million in 2012 compared to a net loss of $1.13 million in 2011.
This was mainly attributed to the increase in depreciation expenses from the upgrading works relating to the launch of the company’s TV services which were still in progress in 2011.
There were also increases in program expenses, motor vehicle expenses, salaries and wages and finance costs.
The 2013 net loss was $5.6 million.
Total expenditure for the state owned broadcaster in 2012 was $13.6 million while the expenditure for 2013 was $14 million.
The total income was $6.6 million in 2012 and $8.4 million in 2013.
It has also been noted that the company accounts for all government grants received after 1st January 2010 as capital contribution.
This is a departure from International Accounting Standards accounting for government grants provided to compensate the company for expenses incurred to be recognized in profit or loss as other income on a systematic basis in the same period that the expenses are recognized.
We have also sent questions to Attorney General and Minister for Public Enterprises, Aiyaz Sayed-Khaiyum.
