http://nationmultimedia.com/2006/11/07/headlines/headlines_30018273.php
CONCESSION DISPUTE
Govt to seek iTV fine of Bt94 bn
PM's Office to submit all documentation to attorney-general within
two weeks
The Prime Minister's Office will submit to the attorney-general
within two weeks documentation of its dispute with iTV Plc. It
seeks more than Bt94 billion from the broadcaster.
[See the timeline of the iTV saga]
PM's Office permanent secretary Julayuth Hiranyawisit said
yesterday a panel overseeing the concession contract calculated
total fines, plus interest, were now Bt94.06 billion.
"It has been nearly six months since the Attorney General's Office
advised us to file for compensation. Now, we will submit documents
to that office and to PM's Office Minister Khunying Dhipavadee
Meksawan for acknowledgement," Julayuth said.
In June, the government claimed the free-to-air broadcaster owed it
fines totalling Bt76 billion for breaches of its concession
agreement. It claimed the station adjusted programming ratios in
2004 without state consent and reduced concession-fee payments from
those specified in the contract.
iTV was paying 6.5 per cent of revenue only - or a minimum of Bt230
million a year - based on a 2004 arbitration-committee
judgement.
But the Central Administrative Court on May 9 overturned that
decision and required iTV to pay 44 per cent of revenue or Bt1
billion a year - whichever was greater.
After the PM's Office insisted the station resume paying the
original fee, iTV filed an appeal with the Supreme Administrative
Court on June 8.
The Central Administrative Court called for backdated concession
fees of about Bt1.7 billion to be paid. iTV was required to
readjust its news-to-entertainment ratio from 50-50 to 70-30.
Julayuth revealed his office's intentions after meeting with
mediators and iTV representatives including Suparanant Tanvirach,
the company's finance director.
At the mediation, Suparanant complained the fines were too high and
sought the appointment of a new arbitration panel.
"It is agreed that right now iTV must stick to the Central
Administrative Court ruling, which said the company must pay the
fines immediately. Thus, the PM's Office will exercise its right to
file legal action within a year," Julayuth said.
He said a mediating committee also explored the possibility the
Supreme Administrative Court could overturn the Central
Administrative Court decision.
If the higher court agrees to the lower concession fees, then the
PM's Office must return the extra amount to iTV, plus
interest.
"This has been discussed at length. The mediating committee said
this must be discussed with the Finance Ministry," Julayuth
reported.
iTV is 53-per-cent owned by Shin Corp. Shin has been controlled by
a group led by Singapore's state investment arm Temasek Holdings
since January, when the family of ousted prime minister Thaksin
Shinawatra disposed of its majority stake to Temasek.
The broadcaster has been on air for 11 years. It has a 30-year
concession.
Julayuth said iTV informed the PM's Office it would pay a
concession fee in its 11th operating year of Bt770 million.
