The Office of the Attorney General (OAG) says the Central Administrative Court's ruling on the concession fee case of iTV Plc had immediate effect, the head of the Office of the Permanent Secretary said yesterday.

Rongphol Charoenphan said the OAG had already sent an official opinion to the PM's Office that the ruling on May 9 had immediate effect.

This has paved the way for the PM's Office to seek payment from iTV immediately, despite iTV's pending appeal with the Supreme Administrative Court.

"We'll inform iTV in writing on Friday about the immediate payment," he said.

iTV faces a potential bill of Bt76 billion in penalties and Bt1.7 billion in backdated fees. iTV's shares yesterday closed at Bt2.80, down by 9.09 per cent from Friday.

The television broadcaster's executive chairman, Niwathamrong Boonsongpaisan, said in a separate conference yesterday that iTV still held to Article 70 of the law governing the establishment of the Administrative Court - that the ruling would be enforced only once the case is completely at an end.

The case ends once the Supreme Administrative Court makes its ruling on the iTV case, he said.

While Rongphol claimed iTV had to pay a fine of Bt76 billion from its adjustment of programming since 2004 without the consent of the PM's office, Niwathamrong argued that the fine should be only Bt100 million per year under the company's calculation method.

He said iTV would clarify all the points with the PM's Office within the next two weeks.

Under the concession, the PM's Office is allowed to fine iTV 10 per cent of its concession fee of about Bt1 billion for each day of the contract's violation.

Rongphol said iTV would also have to pay this year's concession fee of Bt1 billion, which is due on July 3.

The Central Administrative Court on May 9 overturned a 2004 decision by an arbitration committee that had significantly cut iTV's concession fee. As a result, iTV filed an appeal to the Supreme Administrative Court on June 8.

The Central Administrative Court's decision means iTV must resume paying the annual concession fee rate of 44 per cent of revenues or Bt1 billion per year, whichever is greater, to its concession owner: the Office of the Permanent Secretary of the PM's Office.

At present, iTV pays only 6.5 per cent of revenue or a minimum of Bt230 million, granted by the ruling of the arbitration panel in 2004.

The court's ruling also called for backdated concession fees of about Bt1.7 billion to be paid to the government.

The court ruling also voided an easing in programming requirements under the arbitration decision, which had allowed iTV to adjust its news/entertainment programme ratio during prime time to 50:50 from the original 70:30.

The ruling reasoned that the arbitration panel's decision in the case of iTV exceeded its authority in changing the details of the contract between the broadcaster and the government.

Niwathamrong argued that iTV had adjusted its news and entertainment programme ratio to 65:35, nowhere near the 50:50 permitted under the arbitration decision.

Shin Corp Plc is iTV's major shareholder, with a 53-per-cent stake. Singapore's state investment arm Temasek Holdings controls more than 96 per cent of Shin, which was previously owned by caretaker Prime Minister Thaksin Shinawatra's family. Earlier this year it sold its majority stake to Temasek.

The dispute between iTV and its concession owner began when iTV had earlier asked the Office of the Permanent Secretary to compensate it, reasoning that the government had overcharged for its concession fee. However, the government refused to do so.

Moreover, iTV said its operation was adversely affected by the fact that some cable-TV operators were found to have run disguised commercials in defiance of their contracts.

Therefore, iTV filed the case with the arbitration panel and later won the legal battle, which allowed it to pay a much lower annual concession fee and enjoy flexibility to adjust its programmes from January 30, 2004.

After the ruling, the Office of the Permanent Secretary asked the Central Administrative Court to override the arbitration ruling, citing that the verdict exceeded the panel's authority.

The agency awarded the 30-year-concession to iTV in 1995.

iTV posted revenues of Bt2.34 billion last year, up Bt504 million over 2004, thanks to improved ratings for its programmes, especially during prime time.