PM's Office insists iTV must pay fine in 45 days
Bangkok Post
Attorney-general calls for talks on penalty
POST REPORTERS
The Prime Minister's Office, a contract partner with the iTV
station, is determined to impose a 45-day deadline for iTV to pay
the office its concession fee and fine amounting to 99.97 billion
baht. ''At this stage, we must only abide by the Supreme
Administrative Court's ruling and implement it quickly,'' said
Chulayut Hiranyawasit, permanent secretary of the PM's Office, at a
press conference in response to the Wednesday verdict by the
Supreme Administrative Court.
Mr Chulayut said payment must be made within 45 days, but noted
that the office is willing to extend the deadline by another 45
days if iTV is unable to pay.
He said his office submitted the dispute on the calculation method
of annual fee and fine to the Office of the Attorney-General
shortly after the ruling in May by the Central Administrative
Court.
At the same time, he said the cabinet will consider the fate of iTV
on Tuesday.
The Office of the Attoney-General yesterday gave some hope to iTV
by saying it has the right to appeal and the dispute will be ruled
upon by an arbitration panel.
Attorney-General Pachara Yutidhammadamrong said the contract
between the PM's Office and iTV requires disputes over fees and
penalties to be settled by an arbitration committee.
The PM's Office puts the penalties as of May this year at about 94
billion baht while the station argues it should not exceed 300
million baht, saying the PM's Office calculation, which relies on a
news/entertainment programme ratio agreement on a daily basis was
unacceptable.
But Mr Pachara said that if after 45 days of negotiation in the
arbitration stage no solution could be reached, his agency would
seek the court to declare iTV bankrupt. ''The pressing issue is
that both parties must find a solution soon. If they fail, the
station is likely to be restored as a state asset,'' he said.
Deputy Attorney-General Poramet Intarachumnum said a new
arbitration panel will be set up to rule on the case if the station
objects to the PM's Office's demand. He said Thongchai
Prasatvanich, director-general for conflict resolution and
arbitration, is examining the PM's Office document before taking
the next step.
He urged both parties to negotiate on the penalty.
''The government has a reconciliation approach. If both parties
feel negotiation will benefit the state, they should negotiate,''
he said.
He noted that it would be too early to discuss a bankruptcy lawsuit
against the station.
iTV chairman Niwatthamrong Boonsongpaisal yesterday assured his
staff that their salary and welfare benefits would not be affected
and he would do his best to keep the station going. He said the
board would meet on Dec 29 to discuss the penalty payment and
consider options.
Kongkiat Opaswongkarn, chief executive of Asia Plus Securities, has
suggested iTV negotiate with the government to stay afloat rather
than going bankrupt and becoming a burden on the state.
Asia Plus Securities was iTV's financial adviser during the
station's market listing several years ago.
''In my opinion, the only solution for iTV is to negotiate and seek
a compromise to solve this financial difficulty. The station should
seek to revise its concession to make it more competitive when
compared to the other players,'' he said.
If the government buys out iTV, the cost would be relatively low
given the current stock price. Authorities could then delist the
firm from the market and transform it into a non-profit
organisation.
Shares of iTV fell the maximum 30% yesterday on the Stock Exchange
of Thailand, following a 25% decline on Wednesday. The stock closed
at an all-time low of 1.47 baht, down 63 satang, in trade worth
287.2 million baht.
Academic Surapol Sriwittaya, of Rangsit University, has advised
that the government revoke the concession and enact a law decreeing
the station as a national public television station.
Bonds should be issued to the station staff and the general public
to raise funds. The 99-billion-baht penalty should be used to
rehabilitate the station, he said.
''This is to free the station from the concession and monopoly and
ownership by Singapore's Temasek in a legitimate way,'' he
said.
He also called for removal of iTV senior board members appointed by
Shin Corp.
A source at the Administrative Court yesterday doubted that the
PM's Office could impose the penalty.
According to the source, the station had complied with a separate
arbitration ruling made in 2004 and immediately revamped its
programmes after the Supreme Administrative Court's verdict given
on Wednesday.
''All the court did was revoke that arbitration committee's ruling.
It doesn't obligate iTV to pay the penalty. As a matter of fact,
the station didn't breach the contract. It simply complied with the
arbitration,'' said the source.
Prime Minister Surayud Chulanont was reserved about speculation the
government would revert the station to state control. He also
played down speculation the matter would be considered by the
cabinet next Tuesday.
