The National Communications Commission yesterday again rejected a Broadcasting Corp of China (BCC, 中廣) application to reduce its capital, saying that the company might hold illegal assets previously owned by the Chinese Nationalist Party (KMT).
Yesterday’s ruling was the third time the commission has denied the nation’s largest radio network over capital reductions. The two previous applications were rejected in 2011 and last year.
Commission spokesperson Wong Po-tsong (翁柏宗) said that BCC applied to reduce its capital from approximately NT$3.2 billion to NT$628 million (US$101.74 million to US$19.97 million).
The capital reduction would have been accomplished by transferring properties to a new asset management firm established by BCC, which holds mainly land and buildings.
Wong said the commission rejected the company’s latest application because the Ministry of Transportation and Communications had officially informed the commission of a court ruling that said the government owns some of BCC’s properties.
Had the commission approved the application, the ministry would not be able to claim the properties, illegally gained profits and other restitution from BCC, which was valued at NT$256 million, Wong said.
BCC has five national broadcasting licenses, Wong said, adding that the commission was concerned that the network’s operations would be affected if its capital were to be sharply reduced and transferred to a newly established asset management firm.
Many people suspect BCC of holding illegal assets previously owned by the KMT’s Hua Hsia Investment Holding Co after the network’s sale to New Party founder and former UFO radio president Jaw Shaw-kong (趙少康) in 2007, Wong said.
“While the commission is not the government agency in charge of identifying illegal assets owned by political parties, it also needs clarification on this issue from the Committee of Illegal Party Asset Settlement,” he said.
The commission had rejected the first two applications mainly because of settlements and pending lawsuits the BCC had with the ministry, but this was the first time the commission listed “potential illegal party assets” as a reason for rejection.
The Supreme Court in 2014 ruled in a 10-year lawsuit that BCC should return eight properties to the government.
BCC has also been asked to return two of its five national broadcasting licenses to the government, which are to be reassigned to the Hakka Affairs Council and the Council of Indigenous Peoples, Wong said.
The agencies have plans to establish radio stations to serve Hakka speakers and Aboriginal communities respectively, he said, adding that both are in the process of drafting operational plans.
The plans must be reviewed by the commission before the councils can secure operating licenses, Wong said.
“The two BCC licenses were granted because the government needed radio stations to block Chinese Communist Party propaganda transmissions. As that role is no longer needed, the commission needs those licenses back,” he said.
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