This press release summarises the Communications Authority ("CA")'s decisions following its 33rd meeting in August 2014:
Non-compliance with the Licensing Requirement to Submit Annual Audited Accounts by Asia Television Limited ("ATV")
The CA decided to impose a financial penalty of $50,000 on ATV for failing to submit the audited accounts for the accounting year of 2013 ("2013 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 30 April in each year or upon request by the CA the latest annual audited accounts of ATV prepared by an auditor. ATV attributed its failure to comply with the submission requirement to a number of factors, including its inability to secure the approval of the 2013 Audited Accounts by ATV's board of directors ("ATV Board") due to the winding-up petition filed by its shareholders, Mr Cha Mou Sing Payson and Mr Cha Mou Daid against ATV on 22 April 2014; and the advice of ATV's auditors that the draft 2013 Audited Accounts were not ready for issue because the outcome of the winding-up petition could result in a different basis of preparation of the 2013 Audited Accounts. Following the dismissal of the winding-up petition on 14 July 2014, ATV submitted that it was working with its auditors to finalise the draft audited accounts for the ATV Board's approval and would furnish the 2013 Audited Accounts to the CA by 8 August 2014.
The CA took a serious view of the repeated breach by ATV of the same licence requirement1 within a space of eight months. ATV's failure to submit the 2013 Audited Accounts is a blatant breach of its licence condition. It is the responsibility of ATV, the licensee, to ensure that it closely observes the licence requirements. Even though there were disputes and legal actions among the shareholders of ATV, this does not obviate the obligation of ATV to comply with Condition 25.2 of the Licence and submit the regulatory return under the stipulated timeframe.
Taking into account the above, the CA has decided to impose a financial penalty of $50,000 on ATV for the contravention. As ATV has yet to furnish the 2013 Audited Accounts to the CA in accordance with Condition 25.2 of the Licence and taking into account ATV's commitment to submitting the same by 8 August 2014, 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 heavier sanction by the CA.
Other Licensable Television Programme Service Licence
The CA approved the application by Showers of Blessing Evangelistic Ministry (Hong Kong) Limited ("Showers of Blessing") for the renewal of its other licensable television programme service licence for the provision of television programme service to hotel rooms in Hong Kong for a period of three years. Including Showers of Blessing, there are now 27 other licensable television programme service licensees providing services to more than 80 hotels in Hong Kong.
Hutchison Telephone Company Limited ("HTCL") was Found not in Breach of Section 7M of the Telecommunications Ordinance ("TO") (Cap.106)
The CA considered a consumer complaint against HTCL for breaching section 7M of the TO. The complainant alleged that HTCL had engaged in deceptive representations in offering to her mobile services in November 2012, thereby contravening section 7M of the TO. Having considered the findings of the investigation conducted by the Office of the Communications Authority, the CA was of the view that a breach under section 7M of the TO on the part of HTCL was not established. Nonetheless, the CA advised HTCL to improve its sales practice to avoid similar incident from happening in future. For details, please refer to the CA’s Decision which is published on the CA's website.
Broadcast Complaints
The CA also considered two complaint cases in respect of the broadcasters' non-compliance with the Generic Code of Practice on Television Programme Standards ("TV Programme Code") -
(a) complaints against Radio Television Hong Kong ("RTHK")'s television programme "Hong Kong Connection" (鏗鏘集) broadcast on the Jade Channel of Television Broadcasts Limited on 20 October 2013. The CA decided that RTHK should be advised to observe more closely the relevant provisions in the TV Programme Code; and
(b) a complaint against the television programme "Tech Biz" (潮玩科技) broadcast on the now Business News Channel of PCCW Media Limited ("now TV") on 23 December 2013. The CA decided that now TV should be advised to observe more closely the relevant provisions in the TV Programme Code.
Details of the above cases are at the Appendix.
Communications Authority
Secretariat
5 August 2014
| (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 of financial penalty comprised $50,000 for each contravention per accounting year. |