SHOULD GOVERNMENT CONTINUE TO RUN NEWSPAPERS?
THE Zambian government has announced plans to create a consolidated
media and newspaper publishing company under the Industrial Development
Corporation (IDC) Group. This is a
shocking decision given Zambia’s severely constrained fiscal position.
The first step was taken a few days ago when the IDC dissolved
the Times Printpak Board of Directors and handed over the management of the
company to Zambia Daily Mail leaving only the editorial team to manage content
at the broke parastatal haunted by massive debt and liabilities.
The state controlled Times Printpak Limited the Publishers
of the Times of Zambia and Sunday Times of Zambia has growing outstanding
statutory liabilities with workers not receiving regular monthly salaries, in
some cases up to 11 months in arrears.
During the first nine months of 2019, Times Printpak
recorded an operating loss of K41.7 million and had a return on assets (ROA) of
-49 per cent.
The IDC has directed that the Zambia Daily Mail Limited
Board of Directors oversee the affairs of both companies effectively appointing
Nebat Mbewe – Zambia Daily Mail Managing Director to oversee both newspapers in
acting capacity.
In a recent statement, IDC Group Chief Executive Officer
Mateyo Kaluba said the IDC has been concerned with the continued deteriorating
financial situation at Times Printpak Zambia Limited, which had rendered the
company unable to meet its key obligations as they fall due.
He announced that the first phase involved recapitalising
the business to ensure it has the resources to undertake emergency reforms,
making changes at board and management level as well as liquidating all unpaid
salary arrears owed to the workers.
Kaluba argued that the model of consolidating media and
newspaper assets was not unique to the IDC. This assertion can however be
rebutted from various angles and may need to be explained further to convince
Zambians that it’s the viable way out.
Kaluba claimed the model had proved successful around the
world in optimising value of media companies by creating synergies, eliminating
duplications, reorienting resources to growing the business and delivering
profits.
Whilst it is commendable to see government take practical steps
to address the deteriorating situation at Times Printpak, the merging of the
two state newspapers needs to be properly handled or else the state risks
losing Daily Mail as well.
The government must clearly state why it is so reluctant to
hive off the loss making newspapers and let the private sector do the business
since in their current propaganda state, they are not useful to the public and
continue to be unattractive to advertisers. Moreover government is in a
severely constrained fiscal position and may not have cash to run this new outfit.
Will the management of Zambia Daily Mail run two newspapers with the same
resources and on the same conditions of service, or it’s a case of transferring
the burden of Times of Zambia to Zambia Daily Mail? What business does the State have in running newspapers;
especially that online media is increasingly taking central stage on the
dissemination of news world over?
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