CRAN loses millions in uncollected levies
CRAN’s revenue during the 2019/20 FY also took a nosedive, decreasing by 15%, from N$107 million in 2019 to N$91 million in 2020.
The Communications Regulatory Authority of Namibia (CRAN) has lost at least N$158 million through regulatory levies it could not collect since 2018, its 2020 annual report shows.
In response to the findings of the report which covers the 2019/20 financial year (FY), CRAN Chief Executive Officer (CEO) Emilia Nghikembua said the situation has placed CRAN in a compromised position.
“CRAN’s main source of revenue is the collection of regulatory levies under the Communications Amendment Act. The legal challenge in respect of the Act, however, places a limitation on CRAN’s ability to collect revenue to defray the cost of regulation,” she said.
The loss is a direct consequence of the June 2018 Supreme Court decision which declared that Section 23 (2) (a) of the Communications Act and Regulation 6, which formed the basis on which the regulator determined the regulatory levy, as unconstitutional, she said adding that the authority could no longer raise funds through the levy.
Provisions for the levy are currently under review under the Communications Amendment Act, (No. 6 of 2020) which was published in the Gazette in 2020. However, in December 2020, MTC brought another application challenging the constitutionality of the Communications Amendment Act. This challenge is currently before court,” she explained.
Figures
Meanwhile, the report tabled in the National Assembly recently indicated that CRAN’s operating expenses increased by 7.23% from N$126.2 million in 2019 to N$135.4 million in 2020.
The company recorded a comprehensive loss of N$37.7 million during the period under review, compared to a N$12.6 million loss the previous year.
“The upsurge is on account of an increased provision for doubtful debts and a decrease in regulatory levy income,” CRAN’s former CEO Festus Mbandeka is quoted in the report.
Details on how much CRAN could have collected in regulatory levies during the 2020/2021 financial year (FY) are unavailable.
CRAN’s revenue during the 2019/20 FY also took a nosedive, decreasing by 15%, from N$107 million in 2019 to N$91 million in 2020.
During the period in question, telecommunication and broadcasting fees contributed to 19.6% of the total revenue.
The authority also awarded 13 new telecommunication service licenses and six broadcasting service licenses during the period of reporting. - Nampa
In response to the findings of the report which covers the 2019/20 financial year (FY), CRAN Chief Executive Officer (CEO) Emilia Nghikembua said the situation has placed CRAN in a compromised position.
“CRAN’s main source of revenue is the collection of regulatory levies under the Communications Amendment Act. The legal challenge in respect of the Act, however, places a limitation on CRAN’s ability to collect revenue to defray the cost of regulation,” she said.
The loss is a direct consequence of the June 2018 Supreme Court decision which declared that Section 23 (2) (a) of the Communications Act and Regulation 6, which formed the basis on which the regulator determined the regulatory levy, as unconstitutional, she said adding that the authority could no longer raise funds through the levy.
Provisions for the levy are currently under review under the Communications Amendment Act, (No. 6 of 2020) which was published in the Gazette in 2020. However, in December 2020, MTC brought another application challenging the constitutionality of the Communications Amendment Act. This challenge is currently before court,” she explained.
Figures
Meanwhile, the report tabled in the National Assembly recently indicated that CRAN’s operating expenses increased by 7.23% from N$126.2 million in 2019 to N$135.4 million in 2020.
The company recorded a comprehensive loss of N$37.7 million during the period under review, compared to a N$12.6 million loss the previous year.
“The upsurge is on account of an increased provision for doubtful debts and a decrease in regulatory levy income,” CRAN’s former CEO Festus Mbandeka is quoted in the report.
Details on how much CRAN could have collected in regulatory levies during the 2020/2021 financial year (FY) are unavailable.
CRAN’s revenue during the 2019/20 FY also took a nosedive, decreasing by 15%, from N$107 million in 2019 to N$91 million in 2020.
During the period in question, telecommunication and broadcasting fees contributed to 19.6% of the total revenue.
The authority also awarded 13 new telecommunication service licenses and six broadcasting service licenses during the period of reporting. - Nampa
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