Last Friday, (March 14, 2008), the lead story in The Tribune was about the financial crisis at ZNS.

The report on Senator Kay Smith’s presentation to the Senate by Denise Maycock, indicates that the employee pension fund there is underfunded by some $12 million and they are owed some $4 million in receivables. On top of this, the accounts have not been audited in five years!

If that’s not all bad enough, the government has committed $8 million to help cover salaries and benefits this year because the corporation does not earn enough to pay its way.

First of all, how on earth could the pension fund for employees be underfunded by $12,000,000? This is unconscionable!!!

Can you imagine for a moment what the politicians would be saying if this was being done by a business person? I bet you can.

Second. $4 million in receivables might be well within reason, but it depends how old or how long they have been outstanding. If this is $4 million in bad or doubtful debts, then the financial crisis at ZNS becomes even more difficult to manage.

Third. What would possess the government to provide an additional $8 million for salary and other benefits for a corporation that cannot cover these from revenue from sales, year, after year, after year?

If this was a private company, what do you think would happen? Go to the head of the class. You are absolutely right. The private firm would close. But of course, this reality seldom happens with a government owned entity. They just get more taxpayer money.

It gets worse.

Private companies have to submit audited returns each year to pay business taxes and receive a license from the government to operate.

But what happens at the government owned radio and television station? You guessed it, the books at ZNS have not been audited in five years!

The government can close a business down for not providing a return in any given year, but ZNS does not do it for five years and then the taxpayer is asked to foot the bill for a further $8 million to fund this folly.

Both the PLP and FNM are culpable where ZNS is concerned but one can only hope that the FNM has the courage of their convictions to deal with these issues once and for all. The taxpayers of The Bahamas deserve better.

Are there more revelations to come? God knows I hope not, but the going out of business signs should be posted at ZNS effective immediately.