iTV Court Ruling

[ColPyat]

Oh dear! ITV was an independent station until taken over by Thaksin-the original concessions payable to the government and restrictions on entertainment meant it would never be easy to make a profit.

But once he took over all independence was gone, sacking all journalists who protested at editorial interference( about 20).

And did their colleagues, the present distressed staff help them? Not a jot.

At the time the Democratic government let Thaksin take over ITV, there was a clause prohibiting any shareholder from owning over 10%. I don't know to this day why they let him take it over and didn't try to form a BBC type corporation. Though collecting tax from every TV owner in Thailand could prove to have been problematic!

True.

But that doesn't mean that ITV cannot be retuned to its original purpose. Bringing back the original news content balance should do the trick, plus working out a compromise with the new owners given them a timeline in which they have to get rid of the amount of shares that would exceed the originally allowed percentage.

What is gained by a possible destruction of ITV? Nothing.

Well, i do hope that the government is wise enough not to destroy ITV, but to return it to its original purpose.

[Plus]

Leaving it as it is and just changing news content ratio back to the original is surely one of the options. However ITV's present status does not guarantee in any way that it won't be overtaken by vested interests, buying back shares from Temasek is also problematic.

It's probably better to start all over again than try to untangle this mess. They can possibly pass the special law outlining its independent status - guaranteed finding and independently chosen directors. It probably should not be listed but kept as a non-profitable public service with all the profits reinvested rather than paid as dividends.

[sriracha john]

Court rules against Thai broadcaster in latest blow to Thaksin's former empire

SINGAPORE: In the latest blow to the former commercial empire of Thailand's ousted prime minister, Thaksin Shinawatra, the country's Supreme Administrative Court on Wednesday upheld a decision against local broadcaster iTV that could force it to close.

The court rejected a final appeal by iTV against a ruling ordering the broadcaster to increase the annual fee it pays the government, and leaving it liable to as much as 94 billion baht in fines.

"It's really just the end of the road for these guys," said Ramiz Chelat, a regional media analyst at Macquarie Securities in Hong Kong, echoing an opinion shared by analysts in Bangkok. "It will put them out of business."

ITV's stock dropped Wednesday, closing 25 percent lower at 2.10 baht, down 0.70 baht. A spokeswoman for the company said it would seek to negotiate with the government for a lower fine.

ITV is majority-owned by Shin Corp., the telecommunications conglomerate that made Thaksin a billionaire and that critics allege he continued to favor after becoming prime minister in 2001, and transferred control of the company to his children. His family's tax-free $1.9 billion sale early this year of its controlling stake in Shin to the Singapore government's investment arm, Temasek Holdings, inflamed the street protests against Thaksin that culminated in his September ouster.

Had the court sided with iTV, the government would not have been able to levy any fine. Now it must decide whether to demand the full amount from iTV.

In buying Shin, Temasek gained control of the companies in Shin's stable, including Thailand's leading mobile phone operator, a satellite company, a low-cost airline and iTV.

Critics say iTV was an example of how government policies benefited Shin and its holdings.

Set up in the 1990s under one of Thaksin's predecessors, iTV was given a 30-year license on the condition that it broadcast largely news. After Thaksin became prime minister, the company went public and in 2004, was awarded compensation from the government and allowed to pay a lower annual fee. In addition, it was allowed to cut back on news in favor of entertainment.

But in May, the central administrative court rescinded these benefits and ordered iTV to return to its mostly news format and increase its payments. The government followed the decision by demanding 76 billion baht in back payments, interest and penalties. After the coup, a government committee raised that figure to 94 billion baht.

"They want to send a message that you can't abuse your power in office and just change contracts to benefit yourself," said Karen Ang, an analyst who follows Shin for Citigroup in Bangkok.

Analysts said that even if iTV were to avoid the penalties, it was unlikely to be able to afford higher annual fees. Shin, which owns 53 percent of iTV but for whom iTV represents only about 1 percent of its assets, is more likely to let the broadcaster go under than pay the fines on its behalf, they said.

"Shin can't be forced to pay the fine," said Vikas Kawatra, Head of Institutional Sales at Kim Eng Securities in Bangkok.

- International Herald Tribune

[Siripon]

Who remembers the relaunch of ITV, only about 18 months ago with its new background of red?

Traipop, the famous presenter of The Millionaire Game, and the Kanjana Media group announced they had bought a considerable amount of shares with the option of buying millions more within 2 years at 10 baht per share.

Along with the major shareholder,Shin group, they convinced small investors the future was bright.

The share value increased to over 32 baht,( I wonder who bought so much stock to reach that level?)

And then it fell and fell and fell.

Traipop and Kanjana hesitated (declined)over their option buy.

The small investor who bought the hype was left bahtless as the share price plummeted to below 5 baht. And today?

[sriracha john]

The small investor who bought the hype was left bahtless as the share price plummeted to below 5 baht. And today?

At the final bell today, shares were neung baht, see sip jeht satang (1.47)

Government gives iTV 45 days to pay fine

The Prime Minister's Office Thursday decided to give iTV 45 days to pay almost 100 billion baht for penalties and concession fees, said Chulayut Hiranyawasit, permanent secretary of the PM's Office.

"iTV has to pay past concession fees worth 2.21 billion baht and 97.76 billion baht in penalties within 45 days,'' Mr Chulayut told a news conference.

Continued here:

http://www.bangkokpost.com/breaking_news/b...s.php?id=115103

[ColPyat]

It appears that instead of trying to find ways to restore ITV to its original purpose of mainly news station free of government interference, our government prefers to have in the new democratic Thailand only government/military controlled channels on free TV.

[Tony Clifton]

It appears that instead of trying to find ways to restore ITV to its original purpose of mainly news station free of government interference, our government prefers to have in the new democratic Thailand only government/military controlled channels on free TV.

I see nothing wrong with slapping them hard and letting other stations, who have kept their stance bravely during the previous government, keep doing just what you are suggesting. The propaganda machines have to pay the price as well.

[sriracha john]

I see nothing wrong with slapping them hard and letting other stations, who have kept their stance bravely during the previous government, keep doing just what you are suggesting. The propaganda machines have to pay the price as well.

I disagree, Tony.

The loss of their remarkably educational game shows and exceedingly enlightening soap operas will be catastrophic to Thailand.

[Aujuba]

Thaksin's ITv really was MeTV. I think its just another nail in Thaksin's coffin. He probably will think twice about returning to Thailand. He's losing friends by the day here.

As for the gov't getting more control well that may be so. If only Thaksin had been a decent man. He just lined his pockets. If Thailand has problems today it is because of Thaksin and the TRT. Their greed brought this on. I just hope Thaksin and his spawn stay away from the US. The US has hosted too many rotten dictators over the years. They should go live in China. China has harsh rules for corrupt people.

[hammered]

Correct me if I am wrong, but isnt ITV currently majority owned by the investment wing of a foreign government not exactly known for its openess to the freedom of the press?

[ColPyat]

I see nothing wrong with slapping them hard and letting other stations, who have kept their stance bravely during the previous government, keep doing just what you are suggesting. The propaganda machines have to pay the price as well.

What are you talking about?!

All other TV stations have been government/military controlled, no TV station has "kept their stance bravely", all have been TRT propaganda machines, and more so than ITV.

"Slapping" ITV hard? ITV is in the process of getting destroyed. This is the only non-government/non-military owned TV channel on free TV.

[hammered]

I see nothing wrong with slapping them hard and letting other stations, who have kept their stance bravely during the previous government, keep doing just what you are suggesting. The propaganda machines have to pay the price as well.

What are you talking about?!

All other TV stations have been government/military controlled, no TV station has "kept their stance bravely", all have been TRT propaganda machines, and more so than ITV.

"Slapping" ITV hard? ITV is in the process of getting destroyed. This is the only non-government/non-military owned TV channel on free TV.

Hi Colpyat. Yes you are right that all the TV stations were propoganda mouthpieces of TRT at that time, and yes all except ITV are owned by the Thai government or military. However, having just checked I find ITV is 54% owned by Shin, so for most of the Thaksin governments duration it was also a government propoganda station. In fact 20 or so kounalists were dismissed over editorial independence disputes. Now of course ITV exists as a TV station majority owned by a foreign government with a worse reputation for freedom of the press than Thailand, so there are really no independent TV stations in the country.

What comes of this I do not know but hopefully ITV will be returned to being an independent news broadcaster as it was originally set up to be, and hopefully some safeguards will be built in to stop politicians, businessmen and foreign governments from interfering with it to benefit their own ends.

[ColPyat]

What comes of this I do not know but hopefully ITV will be returned to being an independent news broadcaster as it was originally set up to be, and hopefully some safeguards will be built in to stop politicians, businessmen and foreign governments from interfering with it to benefit their own ends.

I hope so too.

But if the government pulls through with their plans then ITV is finished. A channel with mainly news is simply not able to pay those concession fees, and it is laughable to pay a fine that is a multitude of it assets.

I am sorry, but it appears to me that the government is poised on destroying ITV, and not allowing any independent TV channel on free TV at all.

I though the aim was getting rid of TRT media control, and not aiming for complete military control instead. Considering all that is set up now, we are slowly pushed back right into the early 80s.

[eyespan]

What is this all obviously heading towards? And what is the motive behind this act? There must be a political motive involved or is the world suddenly a better place?

1) To own ITV thus having 100% control in Thai broadcasting?

2) To earn some cash out of foreigners as is the culture (double pricing standards)?

3) To punish Mr Taksin? (I really don't know how this can apply as the money is not out of his own pocket)

4) To punish Temasek? (Yup for buying something that no Thais had the cash for. Made the people lose so much face.)

5) To squeeze Singapores' balls and then release with an IOU for future favors?(Millitary governments like to do that)

6) To teach others a lesson.... SPEND MONEY IN THAILAND. NOT MAKE MONEY... OR ELSE.

[Thaising]

Correct me if I am wrong, but isnt ITV currently majority owned by the investment wing of a foreign government not exactly known for its openess to the freedom of the press?

You are rights, the present owner of itv are having a hard time. Beside controlling their local media they even press charges on foreign journalist and media for giving misleading news and information.

[Plus]

They can't just leave ITV as it is, it's license is as good as gone now, the management can surely start packing.

I don't see any reason to speculate that it will re-emerge as a govt owned channel.

[pete_r]

What is this all obviously heading towards? And what is the motive behind this act? There must be a political motive involved or is the world suddenly a better place?

1) To own ITV thus having 100% control in Thai broadcasting?

2) To earn some cash out of foreigners as is the culture (double pricing standards)?

3) To punish Mr Taksin? (I really don't know how this can apply as the money is not out of his own pocket)

4) To punish Temasek? (Yup for buying something that no Thais had the cash for. Made the people lose so much face.)

5) To squeeze Singapores' balls and then release with an IOU for future favors?(Millitary governments like to do that)

6) To teach others a lesson.... SPEND MONEY IN THAILAND. NOT MAKE MONEY... OR ELSE.

Let me see... ITV originally belonged to Nation Multimedia, before Shin took control in the aftermath of the 1997 economic crisis (one of the reasons for the resentment of the Nation against Thaksin, by the way and IMHO). Could it be that the Nation are preparing to get the baby back? They just have to wait for the declaration of bankruptcy that will wipe out the debt, then to step in to buy a popular and profitable channel at a very reasonable price. It would be a suitable reward (...)

[eyespan]

If that is the case, The Nation would have to be in cahoots with the Junta. I am not betting my money on whether this is the case. But anyways, would you happen to know of any links unknown to me about whether who is whose brother-in-law or lover or well..... you get what I mean, between the Junta and the owners of The Nation?

[Jai Dee]

Office of Permanent Secretary to PM’s Office to discuss iTV case with Cabinet this week

The Office of Permanent Secretary to Prime Minister’s Office will report the progress of iTV's case and propose fines collection scheme to the Cabinet meeting this week. The broadcaster is required to pay fines estimated at 100 billion baht to the office as it has violated the operation contract by adding more entertainment programs in its program schedule.

Meanwhile, the Commerce Ministry has planned to propose to the Cabinet to revoke the Council for Democratic Reform’s 8th announcement which prohibits dealers from stocking goods, while the Information and Communication Technology Ministry will request the Cabinet to revise the telecommunication excise tax collection measures.

At the same time, Deputy Prime Minister and Finance Minister M.R.Pridiyathorn Devakula will submit a development plan for the recently designated special development zone in the five Southern border provinces.

The Interior Ministry will request a budget of 501 million baht to prevent and resolve the flood situation in Had Yai District, Song Kla Province, by constructing a new irrigation system.

Source: Thai National News Bureau Public Relations Department - 19 December 2006

[Plus]

Originally The Nation was only one of the shareholders, they didn't "own" ITV. I believe there was 15% cap.

[sriracha john]

iTV fine decision will not be reversed

The decision by the PM's Office to enforce the payment of concession fee and fines against iTV is final and not negotiable, Permanent Secretary Jullayuth Hiranyawasit said yesterday.

iTV is required to immediately pay the Bt2.21 billion concession fee before the end of the 45-day deadline, which began last Friday, to the PM's Office.

However, the Bt97.76 billion fine can be paid within an extended period of time to be scheduled later on, he said.

The PM's Office did not accept iTV's position that an arbitration sanction was still needed to rule on both the unpaid concession fee and the heavy fine.

Jullayuth said iTV faced contract termination if it failed to pay the fee before the deadline.

The Office of the Attorney General, meanwhile, said it would be known what legal action could be taken against iTV only after iTV announces what it would do to comply with the fee and fine obligations - or whether it would do nothing at all.

Sa-nguan Tiyaphaiboolsin, a deputy attorney general tasked with handling the legal action against iTV, said he had not yet received a reply from the station, which had 45 days to say what it would do in response to the Supreme Administrative Court's verdict.

In yesterday's Cabinet meeting, Surayud gave a promise that iTV staff, especially those involved in production, would not be affected in case it is ultimately ordered to stop operations and return the concession to the PM's Office.

Meanwhile, relatives of people killed in the May 1992 uprising submitted a statement to Prime Minister Surayud Chulanont yesterday, calling for a clear stance on iTV to ensure it fully serves the public.

In a statement read by group leader Adul Kiewboriboon, the victims' relatives said iTV was created out of the blood, sweat and tears of people killed in street clashes with government forces in 1992 - a sacrifice never fully recognised by previous governments.

"Both [Democrat and Thai Rak Thai] parties have never showed a clear position to maintain the ideological ground on which iTV was founded as a truly independent television station," he said.

"The Thaksin Shinawatra government, in particular, exploited iTV extravagantly, sucking dry its core spirit and ideology and later selling it to a foreign company," Adul said.

They called on the government to give an assurance that iTV would be allowed to operate freely from the influence of officials and businesses.

The group of 50 relatives said they also disagreed with the iTV dispute going to arbitration.

- The Nation

[Jai Dee]

PM’s Office deciding how iTV should pay its hefty fines

Minister to the Prime Minister’s Office Khunying Thipawadi Meksawan (ทิพาวดี เมฆสวรรค์) said the Office of Permanent Secretary to Prime Minister’s Office, the plaintiff in iTV case, is deciding whether it will request the Arbitrator to outline a fines collection scheme or it will fine the broadcaster immediately by itself. Khunying Thipawadi affirmed that PM’s Office is not pressing iTV during this 45-day deadline of fines payment.

In response to criticism that the Cabinet lets PM’s Office process the case independently, the minister explained that the Cabinet has not interfered with the case as it is not iTV’s contractor, but PM’s Office is. She said at present PM’s office is waiting to see how iTV will pay the fines and how much it can afford to pay.

Source: Thai National News Bureau Public Relations Department - 20 December 2006

[pete_r]

If that is the case, The Nation would have to be in cahoots with the Junta. I am not betting my money on whether this is the case. But anyways, would you happen to know of any links unknown to me about whether who is whose brother-in-law or lover or well..... you get what I mean, between the Junta and the owners of The Nation?

No, I'm not aware of any special relationships. Just trying to guess the future... The link I see is the Nation group being close to the Manager group, whose owner Sondhi L. is good friend with the new government (he is getting back his slot on Channel 9 next month, if my information is correct). But whether this connection is good enough for The Nation to get control of ITV is anyone's guess, specially seeing how critical of the coup they can be (see link below). Wait and see.

http://www.nationmultimedia.com/search/pag...amp;id=30021310

[slimdog]

I doubt if the Nation has either the assets or the inclination to get involved with itv again. Don't forget that since leaving itv, the Nation has taken a 10% stake in TTV and provides a great deal of their news coverage. But even with TTV they have had to make 50% cuts in the workforce.

[Plus]

The Nation would probably be very happy to simply produce news programs, not outright own and manage a TV station.

Under Thaksin they had no chance getting on air on any of public channels.

[hammered]

The Asia Times online has a new article up on the trevails of ITV and its apparent inevitable total demise in the midst of seemingly apathy and little sympathy.

http://www.atimes.com/atimes/Southeast_Asia/IA13Ae01.html

[sriracha john]

UPDATE... well they're just over 2% of their way to be free of the fine they owe... only a little under 98% more to go...

Thai ITV agrees to pay 2.21 bln baht fine

BANGKOK - Thailand's ITV PCL said on Monday it had agreed to pay 2.21 billion baht of the nearly 100 billion baht ($2.84 billion) fine the government has imposed for breach of contract.

The broadcaster, owned indirectly by Singapore state investment firm Temasek Holdings, said in a statement it was still negotiating the final size of the fine with the government.

But ITV, which runs Thailand's third most popular television channel, said after a board meeting it was considering several options to raise funds to pay an additional sum. *perhaps their former owner could put it on his MasterCard?*

ITV risks losing the right to operate if it failed to agree a final fine and payment timetable with the Prime Minister's Office, the department which owns the concession licensed to the broadcaster.

"If ITV and PMO could not negotiate on the issue and ITV was unable to pay the PMO within a specified time, the government agency has the right to terminate the contract," the statement said.

The company had planned to seek loans and raise money in a rights issue, but was unable to do so because of the uncertainty about the amount of the fine, ITV said.

In December, ITV lost its final appeal in the licence fee dispute with the PMO, which imposed a 97.7 billion baht fines for breach of its licence fee agreement.

ITV had appealed after a lower court ruled in May 2006 in favour of the PMO, which had sued the broadcaster to overrule an arbitration ruling which cut the company's fee payments to 6.5 percent of revenues from 44 percent in the original contract.

ITV is 53 percent owned by Shin Corp , for which Temasek paid $3.8 billion a year ago after buying the controlling stake of the family of ousted Prime Minister Thaksin Shinawatra.

ITV shares, valued at $39 million on the Thai bourse, were down nearly one percent at 1.10 baht at the midday break.

- Reuters

Edited January 22, 2007 by sriracha john

[sriracha john]

iTV finding it hard to secure loans

May be forced to file for bankruptcy

Listed broadcaster iTV yesterday admitted difficulty in securing loans to pay a 2.21-billion-baht concession fee to the Prime Minister's Office due to uncertainties over penalty charges to be assessed by the government. Uncertainties regarding the penalties to be assessed against the station has caused the broadcaster difficulty in securing new capital, iTV said. The 2.21-billion-baht payment is due to the PM's Office this month with a Jan 30 deadline. Jullayuth Hiranyawasit, permanent secretary of the PM's Office, said the office would object to iTV's petition seeking arbitration. The office would also send a new letter to iTV demanding payment of the fee if the deadline was missed. ''We insist that the arbitration process is finished."

Continued here:

http://www.bangkokpost.com/News/23Jan2007_news12.php

[sriracha john]

BROADCASTING PAYMENT DEADLINE LOOMS

PM's Office turns down iTV offer

The Prime Minister's Office yesterday turned down iTV's latest proposals to end their financial row and decided to seek a court order to force the television station to hand over about 100 billion baht. ITV representatives, led by chairman Niwatthamrong Boonsongpaisal, went to Government House yesterday with five offers for settling the issue with the Prime Minister's Office.

http://www.bangkokpost.com/News/25Jan2007_news02.php

--------------------------------------------------------------------------------

They got 5 days to come up with 2.2 Billion baht... can anyone spare them 20 baht?

and if so, would you mind helping out with the remaining 98 Billion baht?

Edited January 25, 2007 by sriracha john

[Jai Dee]

M.R.Pridiyathorn insists that ITV pay concession fees of over 2000 million Baht within January this year

The Deputy Prime Minister and the Finance Minister has insisted that ITV pay the 2,210 million Baht concession within this January 31, since it is the court order.

M.R. Pridiyathorn Devakula and Mr. Jullayuth Hirunyawasit (จุลยุทธ หิรัณยะวสิต), Permanent Secretary of the Office of the Prime Minister, yesterday (Jan 25) reported ITV’s proposal on payment leniency to Prime Minister Surayud Chulanont in order for him to conclude on the issue.

However, the Prime Minister agreed with a guideline that ITV must settle the concession fees to the Office of the Permanent Secretary of the Prime Minister's Office because it is the court order which every side concerned must comply with.

Moreover, the cabinet will not consider a five-point proposal on payment leniency forwarded by ITV until the payment has been made.

Source: Thai National News Bureau Public Relations Department - 26 January 2007