Several companies linked to Democratic Progressive Party (DPP) members control 74 out of a total of 131 channels provided by Chunghwa Telecom’s (中華電信) Multimedia on Demand (MOD) service, enabling the party to obtain working capital of NT$4.5 billion (US$148 million) from the telecoms company, Chinese Nationalist Party (KMT) Legislator Alex Tsai (蔡正元) said yesterday.
“Chunghwa Telecom has become the DPP’s treasury,” Tsai said during a question-and-answer session with Premier Wu Den-yih (吳敦義).
Tsai said Taiwan -Interactive Television Company (TITV), owned by Yen Wan-chin (顏萬進), vice interior minister -during the former DPP administration, and three other companies together held four-year licenses for 56.5 percent of the channels on the MOD service.
TITV, established on May 11, 2006, acquired the first satellite TV license from the National Communications Commission (NCC) on Nov. 29, 2007, and the number of licenses owned by a group led by the TITV amounted to 74 before the DPP government handed over power on May 20, 2008, Tsai said.
Tsai said the chief manager of the DPP’s then-presidential campaign office, Wu Nai-jen (吳乃仁), who is close to Yen, made a call on Dec. 27, 2007, to Wu Jia-huei (吳嘉輝), then-NCC chief secretary, leading to the granting of 18 satellite TV licenses to four companies in one day.
In accordance with the related contracts, Chunghwa Telecom gives 70 percent of the revenues derived from its MOD service to its media suppliers and allows its suppliers to make a loan of up to 80 percent of the value of the contract, Tsai said.
Based on an estimated 550,000 subscribers to the MOD service, the group led by TITV receives approximately NT$1.4 billion a year from Chunghwa Telecom, Tsai said.
The 74 licenses valued at NT$5.68 billion allows the DPP to receive working capital of up to NT$4.5 billion from the Bank of Taiwan, Tsai said.
Tsai accused Wu of masterminding the monopolization of the MOD service by the DPP.
TITV and the other three -companies are located in the same office, the seventh floor of the Bade Building, Tsai said. The first to fifth floors house the KMT’s headquarters.
Wu said Tsai’s accusation was created “out of thin air.”
“The allegation is completely false because I didn’t know anyone at the NCC, from the chairman, to commission members, to contract workers,” Wu said, challenging Tsai to waive his right to immunity from prosecution to pursue the accusation.
NCC Chairwoman Su Herng (蘇蘅) said the commission would look into the allegations.
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