MBC in K7 billion debt, Kunkuyu pledges support

The Malawi Broadcasting Corporation (MBC) is still struggling to settle over K7 billion in debts accumulated through pension and tax arrears over a decade ago.

This transpired yesterday when Minister of Information and Digisation Moses Kunkuyu visited MBC’s broadcasting houses in Blantyre.

Apart from the debts, MBC is also facing the challenge of operating on old equipment and studio, a thing which is said to be crippling its operations.

Pledging to support the corporation’s plan to deal with the challenges, Kunkuyu urged politicians to stop exploiting the corporation to enable it to operate professionally.

He was commenting on reports that some politicians and government institutions owe MBC more than K2 billion in debts, adding that the amount was huge and could address some of the challenges the institution is facing.

Said Kunkuyu: “MBC is sinking in debts and this is crippling its operations, but there are also people that owe the institution, most of them politically exposed who come and place adverts but they don’t pay.

“I am appealing to those who advertise on MBC, especially those with political connections, to pay, this trend is killing the institution. MBC could have closed its doors had it not been for sound leadership and dedicated staff.”

MBC director general George Kasakula said most of the debts were accumulated 10 years ago.

He said: “There was a year that Parliament gave MBC K1, making it unable to pay pension, taxes and many more. Over the years they weren’t really updated and things have accumulated. Some of the money we are owed are from adverts, orders were just being given through phones, to run an advert without even documentation.”

“This is affecting us badly because our strategic aim is to have an MBC that is financially vibrant and sustainable, so, all these debts tend to affect our cash flow.”

According to Kasakula, the corporation has put in place measures to collect all the money it is owed by the end of this financial year by, among others, hiring a private institution to collect on its behalf.

He said the coming in of the minister was an encouragement, as he has approved some of the measures the institution plans to undertake to collect revenue all the debts and settle its arrears.

“We want the government to approve the sale of some assets because we can’t sell assets without the approval of the Secretary to the Treasury; we also want to reform the commercial department to have a financial turnaround. He has offered support,” said Kasakula.