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The following is issued on behalf of the Communications Authority:
This press release summarises the Communications Authority (CA)'s decisions following its 43rd meeting in July 2015:
Non-compliance with the licensing requirement to submit annual audited accounts by Asia Television Limited (ATV)
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The CA decided to impose a financial penalty of $50,000 on ATV for its failure to submit the audited accounts for the accounting year of 2014 (2014 Audited Accounts), which contravened Condition 25.2 of its domestic free television programme service licence (the Licence).
Condition 25.2 of the Licence requires ATV to submit to the CA not later than April 30 in each year or upon request by the CA the latest annual audited accounts of ATV prepared by an auditor. The submission of the 2014 Audited Accounts fell due on April 30, 2015. In response to the CA's invitation to submit representations in May 2015 on its failure to submit the 2014 Audited Accounts, ATV attributed it to a number of factors, including its precarious financial position, possible change of ownership and change of personnel, which had impacted on its ability to comply with the regulatory requirement. ATV then further requested an extension of the submission deadline to July 31, 2015.
The CA took a serious view of the breach by ATV as this was already the third breach by ATV of the same licence requirement (Note 1) within a period of two years, a clear reflection of negligence on the part of ATV's management and the absence of effective corporate governance in ATV. Notwithstanding the decision of the Chief Executive in Council not to renew the Licence (Note 2), it remains incumbent upon ATV to comply at all times with all applicable regulatory requirements under the Broadcasting Ordinance (Cap. 562) and the provisions in the Licence during the validity period of its current Licence. Despite ATV's attribution of its failure to various difficulties, it does not obviate the obligation of ATV to comply with the relevant licence condition and to submit the audited accounts within the stipulated timeline.
Taking into account the above, the CA decided to impose a financial penalty of $50,000 on ATV for the contravention. As ATV has yet to furnish the 2014 Audited Accounts to the CA in accordance with Condition 25.2 of the Licence and taking into account ATV's request for submitting the same by July 31, 2015, ATV is directed under Condition 25.1 of the Licence to submit the outstanding audited accounts by the same day and that any failure to do so will lead to the imposition of a heavier sanction by the CA.
Broadcast complaints
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The CA also considered two complaint cases in respect of the licensees' non-compliance with the codes of practice on television and radio programme standards:
(a) complaints against the television programmes "6:00 News", "Main News and Weather Report" and "Late News" broadcast on the Home, Asia and/or World Channels of ATV on March 31, 2015. The CA decided that a financial penalty of $300,000 should be imposed on ATV for breaching the relevant provisions in the Generic Code of Practice on Television Programme Standards; and
(b) a complaint against the radio programme "Circles" broadcast on the CR 1 Channel of Hong Kong Commercial Broadcasting Company Limited (CRHK) in October 2014. The CA decided that CRHK should be strongly advised to observe more closely the relevant provision in the Radio Code of Practice on Programme Standards.
Details of the above cases can be found at: www.coms-auth.hk/filemanager/en/content_713/appx_20150728_en.pdf.0
Note 1: In November 2013, the CA decided to impose a financial penalty of $200,000 on ATV for failing to submit the audited accounts for four accounting years from 2009 to 2012, which contravened Condition 25.2 of the Licence. The $200,000 financial penalty comprised $50,000 for each contravention per accounting year. In August 2014, the CA decided to impose a financial penalty of $50,000 on ATV for failing again to submit the audited accounts in the year 2013, which contravened Condition 25.2 of the Licence.
Note 2: On April 1, 2015, having regard to inter alia the recommendations of the CA, the Chief Executive in Council decided not to renew the Licence, and for the purpose of complying with the requirement under section 8(1)(a) of Schedule 4 to the Broadcasting Ordinance (Cap. 562), to extend the term of the Licence to April 1, 2016, i.e. 12 months after the notice of non-renewal of the Licence was served on ATV.
Ends/Tuesday, July 28, 2015
Issued at HKT 17:09
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