Consumer group wants decision on SLC stake in NMG reversed

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Consumer group wants decision on SLC stake in NMG reversed
THE NATION


NMG chairman Suthichai Yoon files a petition to Department of Special Investigation chief Suwana Suwanjata, seeking an investigation into the questionable trading of NMG stocks since 2014, as senior company executives look on.

BANGKOK: -- A CONSUMERS rights group yesterday called on three members of the broadcast regulator to rescind their decision on the legitimacy of SLC's stake in Nation Multimedia Group (NMG).

Suwanna Jitprapas, adviser to the Foundation for Consumers, said the broadcasting committee of the National Broadcasting and Telecommunications Commission (NBTC) must uphold the spirit of the law and the intention of media reform to protect public interest. Hence, all members of the broadcasting committee should be united in applying the rules governing the auction of digital TV licences to prevent hegemony even after bidding has ended.

Suwanna was speaking after submitting an open letter to broadcasting committee member Supinya Klangnarong.

Her group also claimed that the decision by the three commissioners - Colonel Natee Sukonrat, Pol Colonel Thaweesak and Lt-General Peerapong Manakit - could be considered a dereliction of duty in regulating the broadcasting sector under media reform, which also affected the people's right to know.

Under the rules governing the auction of digital TV licences, a major shareholder was not allowed to hold more than 10 per cent of other companies in the same licence category. The "major shareholder" is not only defined as a person or juristic person allowed to have ownership of not more than 10 per cent of the company, but also mutual beneficiaries. The SLC and its subsidiaries wholly own Spring News digital TV.

On Monday, Natee and Thaweesak abstained on the grounds that the auction's rules on digital TV licences should not be enforced after the fact. Peerapong voted against applying the rules against News Network Corporation, formerly known as Solution Corner (1998), or SLC.

Peerapong also reasoned that SLC was deemed to hold no controlling power over NMG, as it owns only 12.27 per cent. He said SLC held an equity stake in NMG, not in NBC Next Vision Co (NNV), which is a holder of a digital-TV licence. NNV is a wholly-owned subsidiary of Nation Broadcasting Corporation, which is a 70-per-cent owned subsidiary of NMG. Sombat said Peerapong took the view that there was no evidence of SLC taking control of NBC Next Vision in terms of its shareholding structure.

However, two other members of the broadcasting committee - Supinya and Thawatchai - voted at the meeting that the digital TV auction rules against hegemony should remain valid.

With a 2:2:1 outcome, the broadcasting committee could not take any action on the controversial case regarding the alleged violation by News Network Corporation of the rules covering the auction of digital-TV licences. A decision on this case was delayed twice since last year.

"If there is no revision on this matter, our group will submit a proposal to the National Reform Council to impeach Natee, Thaweesak and Peerapong for failing to enforce the law, leading to the danger of dominance in the media and media reform," Suwanna said.

She added that all three would be accused of violating Articles 31 and 32 of the Broadcasting Business Act of 2008 and the criteria used for selection of those who can be stockholders and stakeholders before and after the digital TV bidding.

Supinya said the consumer group had the right to take action. She added that the final decision on this case would be officially approved by the broadcasting committee on Monday.

NMG executives yesterday lodged a complaint with the Department of Special Investigation (DSI) and sought a probe into those who were involved in the purchase of NMG shares since early 2014. They said the purchases had resulted in price fluctuations, which had affected small stock investors.

They urged the DSI to examine the purchases, the source of investment and the financial trail of those who claimed to be small affected investors. The DSI should also check the issue of illegal domination of media organisations, as it would have an impact on freedom and independence of the organisations.

Suthichai Yoon, chairman of NMG's board, said the media should not be dominated, as it would lead to questions of correctness in doing business and responsibility to the public. "We are more than ready to cooperate with DSI in providing the information," Suthichai said.

Source: http://www.nationmultimedia.com/politics/Consumer-group-wants-decision-on-SLC-stake-in-NMG--30256838.html


-- The Nation 2015-03-27