Bernama Cash Strapped Staff In A Quandary Ministry Launches Probe

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National news agency Bernama is a facing a cash flow problem - affecting payments to staff's EPF contributions and their loan repayments - despite making deductions from their salaries
In a town hall meeting with about 100 staff at Bernama's Kuala Lumpur headquarters yesterday, its accounts and finance senior manager Syarifah Zaini Syed Zain said the company was experiencing "financial constraints.""Until now, we have yet to receive our grant from the government, so we used the money (from the EPF contributions) to pay for your July salaries," she told the staff
"Yes, we can make the decision to pay all your EPF contributions which means we will then not be able to pay your recent July salaries

"Because the grant is still (stuck) at the Finance Ministry," she added
Malaysiakini had obtained a recording of the town hall session from sources
Besides EPF contributions, staff who pay their car loans through salary deductions have also been affected. Syarifah said loan repayments have only been made as of up to June
This has inadvertently affected the staff's credit ratings, she admitted
Syarifah said she has asked the Finance Ministry why there was a delay in paying the company their third-quarter grant which would usually be on time for payday
When a staff member asked if August salaries would be paid, Syarifah replied: "I dare not promise but we should pay it around 22nd or 23rd (of the month).”"I also cannot promise that all contributions (to EPF and other authorities) would be submitted but I believe the Finance Ministry would keep to its promise to give us the grant next week," she added
Syarifah said the current situation did not arise in the past as grants were paid on a six-month basis, adding that the current grant has been delayed for about 1.5 months which resulted in the company's cash flow being "stuck."CEO: You have bills to pay, children to feedMeanwhile, Bernama CEO Nurini Kassim (below) urged staff to understand that the agency prioritised staff's welfare
"You need your salaries, you have bills to pay, you need to feed your children, that is our priority. Syarifah has to look at our cash flow to see what can be set aside first," she said
Nurini expressed personal concern that the company would be hauled up by EPF for not paying its statutory contributions
"It is an issue for me as well. I came from the EPF and they know who I am. As if I would not pay the contributions now that I am with Bernama," she said
She tried to explain that she was in a dilemma when deciding between paying the staff's salaries, which is her priority, or contributions to EPF
"Yes, the government is in financial constraints," she added
In a statement to Malaysiakini today, Bernama said all outstanding cash flow problems have been resolved and that it is working to improve its internal cash flow and financial management process
This was part of its overall rationalisation plan to transform the national news agency into an "information powerhouse" amidst a challenging media landscape
"These challenges aside, Bernama gives top priority to ensuring staff welfare as was clearly communicated to the employees at a town hall session yesterday
"Bernama realises the importance of maintaining employee morale at a high level as it is people who drive efforts to enhance the organisation’s operational and financial performance," the agency said
The Finance Ministry's national budget office director Johan Merican, meanwhile, told Malaysiakini that it was working closely with the Communications and Multimedia Ministry to resolve the matter
Another ministry official added that a probe would be launched into how Bernama spent the grants it received from the ministry which was enough to cover its expenses each month. - Mkini

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