Public Broadcaster Requests Additional GEL 1,300,000 from the Governmental Reserve Fund

Nata Dzvelishvili, Media.ge

Management of the Public Broadcaster requests the Prime Minister allocation of additional GEL 1,300,000 for the functioning of the Second Channel, from the reserve fund.  Board of     Trustees has approved the given initiative of the Director General of the Public Broadcaster Giorgi Chanturia at 12 April session.

According to the documentation posted at the Public Broadcaster website the requested amount will be used for technical equipment of the Second Channel Kutaisi office and the new Parliament building.  For the given cause the Public Broadcaster has already signed a contract with SONY PROFESSIONAL SOLUTIONS MEA FZ-LLC. 

Director General of the Public Broadcaster Giorgi Chanturia clarifies that the PB has requested GEL 9 million for theKutaisioffice equipment and live broadcasting from the new Parliament building, but only GEL 7 million has been received, so additional amount is requested now.  According to Chanturia, the given amount includes the expenses for purchasing the equipment, planning, projecting, installation and workforce.

“SONY representatives have calculated the expenses for the office and Parliament relative equipment.  They have calculated the amount.  That Company provides for everything,” Gia Chanturia told media.ge.

According to the Law on Broadcasting the State Budget is the main source of funding for the Public Broadcaster.  Funding is determined at not less than 0,12% of the gross national product ofGeorgiaof the previous year.  Budget of the PB in 2011 has been set at GEL 55 million with GEL 49 million allocated from the State budget.  Res of the GEL 5 million will be received from own revenues – advertisements in sports programs and renting out of equipment and owned real estate.

Right the revenues received from rent makes up the major part of the accounts receivables (accumulated debt to the Public Broadcaster).  According to the audit report of 2011, which was also published on 12 April, debts of older debtors have decreased compared to 2010, although volume of advance payments has increased.  “Large part of the debtors of 2011 is the unpaid amounts for rented out real estate,” the Audit Report reads.  Audit Report was done by the Company of Independent Evaluators and Auditors Auditescort LLC.  Total accounts receivable made up GEL 2 million.

According to Gia Chanturia, large debtors are the following companies:  San Guko, TBC TV Studio, Radio Ucnobi.  “Restructuring of debts has been agreed with each of them and they will probably repay the debt,” Gia Chanturia said.

Audit Company recommends the PB Management to activate in view of achieving repayment of debts by individual debtors.  PB Management is advised to act strictly and introduce harsh fining system.

The Public Broadcaster itself still has old debts.  According to Gia Chanturia, during the recent period the old debt has been decreased from GEL 30 million to 5-6 million.  Main part of the debt was to Alfa Com (Georgian TV-Radio Center/TV-Tower) and the European Union of Broadcasters.

According to the audit report inventory is underway in the organization.  It was started in 2010 and has not completed in 2011.  During the auditing period only the process of marking the key assets was completed.  Auditors advise the Director General of the PB to write off the useless assets.

“Due to that we are unable to confirm, or deny the reality of remainders in the balance,” says the Audit Report.  The report reads that it is necessary to develop the schedule of writing off useless assets, which will promote correction of registered remainders and setting of real balance.

According to the PB Director General Gia Chanturia, the inventory has not been conducted during last 30 years.  It is related to serious expenses, so the process has been hampered.

In 2011 the Public Broadcaster received GEL 45 million from the State Budget; over GEL 10 million has been paid as salaries.  According to the Audit Report the factual number of full-time employees is 53 and part-time 992.  According to the Report the average salary of full-time employees is Gel 2,678 per month and of part-time employees – GEL 716.