iTV pays up just Bt230m,well short of court order
Free-to-air broadcaster iTV Plc yesterday paid the government Bt230 million in annual concession fees - well short of the Bt1 billion demanded by the state.
The Prime Minister's Office will be receiving a letter from iTV explaining the shortfall. Executive chairman Niwattumrong Boonsongpaisal said yesterday iTV would pay only Bt230 million in concession fees, as determined by a 2004 arbitration-panel decision. He asserted the arbitration-panel ruling was valid and had not been revoked by a Central Administrative Court order made on May 9. He cited Article 70 of the Administrative Court rules, which states that lower court rulings would be enforced only once a case has exhausted all legal avenues. As well as the Bt1 billion in current concession fees, the government is seeking back payments of Bt1.7 billion and penalty fees. iTV has an appeal of these claims pending in the Supreme Administrative Court. The May Central Administrative Court order overturned the 2004 arbitration decision that significantly cut iTV's concession fee. The Central Administrative Court ruled iTV must resume paying the annual concession rate of 44 per cent of revenue or Bt1 billion a year, whichever is greater. The payment is to be made to the Office of the Permanent Secretary of the Prime Minister's Office. But, iTV said it would pay 6.5 per cent of revenue - or a minimum of Bt230 million - as declared by the 2004 arbitration panel. The Central Administrative Court also awarded the government backdated concession fees. The court found the arbitration panel exceeded its authority in changing the details of the contract between the broadcaster and the government. iTV's major shareholder is Shin Corp Plc with a 53-per-cent stake. Singapore state investment arm Temasek Holdings controls more than 96 per cent of Shin, which was previously owned by the family of caretaker Prime Minister Thaksin Shinawatra. It sold its majority stake to Temasek earlier this year. The iTV dispute erupted when the broadcaster claimed compensation for alleged state overcharging of the concession fee. The government refused. In addition, iTV claimed its business was unfairly affected by some cable-television operators broadcasting "disguised" commercials in violation of their contracts. This was the basis of its successful arbitration panel argument. That victory allowed iTV to reduce its concession payments as well as granting it programming flexibility from January 30, 2004. The government successfully contested that decision in the Central Administrative Court. The broadcaster has been on air for 11 years. It has a 30-year-concession.
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