The management of NTA-Star TV Network Ltd, a joint venture between the Nigerian Television Authority (NTA) and the StarTimes Group, has said it would welcome the planned forensic audit of its finances and operations, by the Senate’s Joint Committee on Finance and National Planning.
The pay-tv service provider’s management, in a statement signed by its Public Relations Manager, Mr Lazarus Ibeabuchi, also stated that contrary to insinuations of an unaccounted-for sum of N200billion, no revenue was missing; since gross earnings had been reportedly ploughed back into the cost of production.
“We also want to clarify that no revenue is missing as gross earnings have been repeatedly ploughed back into the cost of production to cover the cost of components, namely transmitters, equipment, generating sets and satellite; content acquisition; as well as operating costs, which include salaries and other running costs, incurred within our ten years of operation.
“NTA-StarTimes TV Network Limited is a responsible corporate organisation, with our business activities conforming to statutory laws and regulations. Our accounts are audited by one of the big four audit firms in the world, widely known for their integrity and professionalism in the audit field.
“Besides our statutory audits being carried out by external auditors, our financial activities are also fully audited by the Federal Inland Revenue Service, FIRS,” the company stated.
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It, however, attributed the loss in its operations, over the years, to the fact that its huge upfront investment was in U.S. dollars, and the long-term cost recovery had met brick-walls with successive years of naira depreciation.
“Pay-TV business is capital intensive and has a long gestation period. More than 80 per cent of inputs into our operations are dollar-denominated. The naira fluctuations haven’t been favourable to the business, making it more and more difficult to meet dollar-denominated obligations. StarTimes
“We, however, regret the outcome of the Senate hearing, especially as it amounts to a media trial without proper due diligence.
“To this end, we are open to a proper investigation into our operations and financials, especially as we believe the company is run in a prudent, responsible and sustainable manner,” the company stated.
The company is, however, optimistic that, with the support and trust of its public and business partners, and a fast-improving operating environment, its performance would be on the rise, with is losses declining. StarTimes
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