ATV executive must quit, may face police probe
Broadcaster fined a record HK$1M for investor’s intervention
Asia Television ( ATV) was fined HK$ 1 million for breaching a license term and its executive director, James Shing Pan-yu, may face a police probe for allegedly misleading the regulator with pruned documents to conceal the dayto-day intervention of ATV’s main investor, Wong Ching.
The Communications Authority made the findings public on Friday after a 14-month delay. The broadcaster had attempted to block the report with a judicial review application since last June, but lost the legal battle at the top court earlier this month.
ATV had sought to identify insiders that supplied “information” to the regulator and the report revealed why conference minutes provided by the company were apparently pruned when compared to records held by insiders interviewed by the authority.
Sixteen out of 32 minutes of the weekly management meetings, for instance, showed material discrepancies in regard to Wong’s involvement in ATV between January and September 2011. Six of them involved deletions that had the effect of “downplaying” Wong’s role.
The “corrected” minutes were not circulated among meeting participants. Shing first argued the minutes were
I have fought the battle for ATV until the last moment. This is the cost (we) paid for the conscience route.”
JAMES SHING PAN-YU EXECUTIVE DIRECTOR OF ASIA TELEVISION
“updated” to reflect the progress of matters deliberated. He then said signing on the minutes “did not reflect recognition of their authenticity”.
The report concluded Shing had deliberately misled the regulator. He was thus no longer considered a “fit and proper person” to run the station as an executive director, and was ordered to quit all managerial posts before Sept 2.
He may suffer a bigger blow. When a person makes “false instrument” to “induce somebody to accept it as genuine”, he commits forgery and could be jailed for up to 14 years. The police have been notified of the findings.
Barrister Albert Luk Waihung said it appeared a strong case, given its clear intent to mislead the regulator and the lack of consent from other participants to amend the minutes.
The prosecution dilemma, he said, concerns whether Shing knew about the offense beforehand.
James Shing, via a statement on Friday, claimed his family has spent HK$ 1.6 billion in the past four years on the ailing station. “I have fought the battle for ATV until the last moment,” he wrote. “This is the cost ( we) paid for the conscience route.”
ATV has yet to indicate the fate of its main investor, Wong Ching. The report ruled that since he had exercised “de facto” control on ATV, the station must pay a HK$ 1 million fine for breaching licensing terms. It is the steepest fine the law permits.
Wong, a “personal consultant” to James Shing, signed an undertaking in October 2010 that he was not “entitled to exercise de facto control over ATV” as a premise for the regulatory approval of a change of ownership at ATV.
That promise was soon questioned. An anonymous letter, dated June 2011, outlined Wong’s control on a day- to- day business. A false report about the “death” of former president Jiang Zemin, aired in July 2011, fueled public concern and prompted the launch of probe.
Minutes and statements provided by insiders showed Wong’s involvement was too “direct and active” for a consultant — he decided the list of candidates for a contest, he ordered the adoption of stricter rules for artistes and he dominated the agenda at meetings.
In response, ATV told the regulator that these sources were biased and not credible given their “vested interests, prejudiced motives and/ or improper motives”. The regulator, having considered the evidence, ruled Wong had broken the pledge.
ATV was again warned to keep Wong out of the loop. It must also submit a proposal to improve its corporate governance by November. Chairman of the Communications Authority, Ambrose Ho Puihim, said the history of irregularities will be taken into account if the station wants to renew its license, which expires in 2015.
Ho said it was too early to suggest what penalties to take if ATV again fails to comply with the regulator’s requirements, but revoking its license remains an option.
Clement So York- kee, a professor at the School of Journalism and Communication of Chinese University of Hong Kong, described the severe penalty as unprecedented in the city’s broadcasting history. He urged the station to find new investors and improve its production quality.
ATV will still have 30 days to fi le an appeal with the Executive Council against the regulator’s ruling. As of late Friday, the station did not indicate whether it will obey or protest.