x. The total staff complement will be reduced from 569 as at 1 September 2019 to
413. This reduction will require an intensive staff reduction exercise by the end of
this financial year, meaning that 156 NBC staff members (permanent and short-
term contracts) risk losing their jobs. The engagement process with NAPWU and
the Office of the Labour Commissioner will commence effective from 10"
September from a process perspective.
xi. Current employment agreements of the remaining staff complement may be
renegotiated with the aim to reduce cost linked to current and future employment
benefits structure (leave, medical aid, retirement, insurance, etc.)
3. FIDUCIARY DUTIES OF THE BOARD OF DIRECTORS
Certainly, the above proposed measures are not taken lightly and their impact on many
stakeholders i.e. staff and the public, cannot be overemphasized. However, as Directors
we must at all time act in the best interest of the NBC, owing he corporation the duty to act
with care, skill and diligence. At present, we are unable to vouch that the NBC is able to
meet all its liabilities and can continue as a viable business
This situation has led to the statutory obligations not being able to be complied with, a
situation which risks the Directors; exposed to criminal, civil and governance liabilities for
failing to ensure that the NBC has the required funds to carry out its operations; despite
the fact that this factor is mainly outside the control of the Directors but determined by the
Shareholder. In fact, the Namibia Financial Institutions Supervisory Authority (NAMFISA)
has been planning to refer the NBC to the Procecutor General to consider prosecution for
violation of the Pension Funds Act (Act No. 24 of 1956). Our question is, where does this
leave the Shareholder who in the main is responsible for the funding part of the NBC given
its nature of operations. Note must be taken that despite all these challenges, the NBC
has been generating revenue which for the past three years is hovering above N$100
million per annum.
If the funding level cannot be improved to ensure that it is commensurate with planned
spending, it would be prudent to consider the liquidation of the NBC in terms of Section 29
of the Namibian broadcasting Act (Act No. 9 of 1991).
Yours Sincerely,
SVEN THEME
CHAIRPERSON BOARD OF DIRECTORS — ON BEHALF OF BOARD OF DIRECTORS.