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TVBS brouhaha raises host of questions

Behind the recent furor over TVBS is a simple question: is the station violating the law because it is entirely funded by foreign money?

But in attempting to find an answer, the Government Information Office (GIO) has sparked a debate about how to balance freedom of the press against preventing Chinese control over the nation's media. And while the GIO insists the issue is enforcement of the law, many see its probe of TVBS as an attempt to muzzle media outlets that criticize the government and publicize its misdeeds.

The public uproar began when the GIO on Oct. 29 launched a probe into TVBS's ownership structure, and said that the station's foreign stake appeared to exceed the law's 50 percent limit.

The timing of the GIO's announcement immediately prompted criticism. The launch of the probe followed directly after TVBS publicized evidence of alleged government corruption.

On-air evidence

TVBS' talk show 2100 Quan Min Kai Jiang [Speaking Your Mind at 2100] publicized a photo of former deputy secretary-general of the Presidential Office Chen Che-nan (陳哲男) at a casino in South Korea in 2002, which fed the fire of a mounting scandal relating to Chen's alleged corruption.

That and other "evidence" was aired on TVBS on Oct. 27 and Oct. 28. The very next day, Yao announced that the GIO would launch an investigation of TVBS. But Yao insisted their was no political motive behind the probe.

"I must say again that this issue has nothing to do with politics," GIO Minister Pasuya Yao (姚文智) said. "We simply want to make everything legal and play by the rules."

Critics quickly made another point: if the GIO was so concerned about TVBS, why did its evaluation committee renew the station's license without problem in July?

In response to that question, Yao admitted that the evaluation process was not well organized.

"Our review and evaluation were based on documents that were submitted by applicants. From that information, we did not notice that the ratio of TVBS' foreign shares exceeded 50 percent, which is against the law," Yao said.

"But there is also a three-month probation period, and the GIO is authorized to make any changes if any mistakes are discovered during this period," he said. "That is what we are doing."

Old problem

However, Yao's explanation was quickly rebutted by a member of the GIO's evaluation committee, who spoke on condition of anonymity. The member said that committee members had already noticed TVBS' foreign ownership problem and had alerted GIO officials in early August.

"The law only regulates that `direct foreign shares' of a station or newspaper cannot exceed 50 percent, but it does not say anything about `indirect foreign shares.' TVBS is taking advantage of that grey area," the member said.

That regulation is laid out in Article 10 of the Satellite Broadcasting Law (衛星廣播電視法), which was approved in 1996.

According to the GIO's investigation, Bermuda Production Co, a British company, owns 47 percent of TVBS, while Oriental Production Co, a Taiwanese company, owns 53 percent. However, Oriental Production Co's entire budget comes from Hong Kong, as does the funding of Bermuda Production Co. As a result, the GIO asserts that TVBS is actually owned and operated by 100 percent Chinese interests.

TVBS chairman Norman Leung's (梁乃鵬) background has become another focus of debate.

Leung, the former chairman of the Hong Kong government's Broadcasting Authority, possesses dual Hong Kong and Irish nationalities. The GIO argues that it may be illegal for a foreigner to be the chairman of a local TV station, and has asked TVBS to find a new chairman.

Explanation

On Oct. 31, the GIO officially filed a request to TVBS and asked for an "explanation" by 6pm this past Friday.

TVBS sent its "explanation" to the GIO around 3pm on Friday and distributed a summary of its explanation to the press.

According to TVBS, Article 10 of the Satellite Broadcasting Law stipulates that the major shareholder of a media company must be a Taiwanese shareholder. However, the law does not stipulate that the Taiwanese shareholder's budget must be funded with domestic money, or that the company's head must be a Taiwanese. As a result, there is nothing illegal about Leung's foreign nationality or the Oriental Production Co's foreign budget.

That hasn't deterred the GIO minister. Yao mentioned he would ask GIO officials to question two former GIO chiefs -- Taichung Mayor Jason Hu (胡志強) and Taiwan's representative to the EU and Belgium Cheng Chien-jen (程建人) -- on whether former GIO staff members or chiefs made any mistakes or engaged in illegal behavior relating to TVBS.

Widening probe

At a press conference Yao held on Friday night, he said the problem of the TV stations' ownership dates back to 1999, when the station was finally given a license. Cheng was then head of the GIO.

Cheng said he does not remember the evaluation of TVBS' application for a license.

"But it is not difficult to retrieve the documents," Cheng said.

In response to the mounting controversy, President Chen Shui-bian (陳水扁) last week said categorically that his government would not shut down any TV station during his term, out of respect for freedom of the press.

But Yao said a decision on whether to fine TVBS or suspend its operation licenses will be made sometime next week.
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