State to keep control of ‘new’ NBN

Apparently driven by political considerations, Gov-ernment has gone back on its decision to divest NBN to private investors. Public Administration Dr Lenny Saith stated on Friday that the new broadcasting entity which would replace NBN would also be 100 percent State-owned. Saith made the disclosure in response to a question in the House of Representatives on Friday. Stating that Government intended to wind up the operations of NBN, Saith said: “We would liquidate the debt of the company and all obligations to workers would be met.”

He added that assets of NBN, including the radio stations — 6.10 am, 98.9 and 100.1 FM, and television channels 2, 20, 9 and 14, would be transferred to a new company, which would be 100 percent State-owned. The mandate of this new entity would be to compete for market share and to ensure its commercial viability. He said through a tendering process, seven bids were received to assist the new company to finding its character. As a consequence EDC Technologies Services Ltd had been engaged to do a five-year business plan to enable the new company to meet its mandate, he said.

Noting that negotiations were in process for a separation package for NBN’s 251 employees, Saith said all suitably qualified citizens of Trinidad and Tobago would be considered for employment by the new company which “I am sure” would want to make use of some of the experience and expertise of the present employees. According to Saith, for the last six years NBN had been under-performing and generating substantial losses. An evaluation of the financial position of the company in December 2002 concluded that it was technically insolvent. Losses before taxation, which had increased by 17 percent over the previous year, were $20.4 million in 2002, while working capital deficit, had  increased by 26 percent to $14.3 million for the same period. He said liabilities continued to escalate to $20.3 million by December 31, 2002.