**************************************
The following is issued on behalf of the Communications Authority:
This press release summarises the Communications Authority (CA)'s decisions following its 48th meeting in December 2015:
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 $100,000 on ATV for its failure to submit the audited accounts for the accounting year of 2014 (2014 Audited Accounts) by October 31, 2015, and another penalty of $10,000 per week for its continuing failure to submit the 2014 Audited Accounts to the CA thereafter, which contravened Condition 25.1 of its domestic free television programme service licence (the Licence).
The CA had imposed in July and September 2015 financial penalties of $50,000 and $100,000 on ATV for its failure to submit the 2014 Audited Accounts by the stipulated deadline of April 30, 2015, and the extended deadline of July 31, 2015, respectively. The CA had also directed ATV under Condition 25.1 of the Licence to submit the 2014 Audited Accounts by the further extended deadline of October 31, 2015, with which ATV had again failed to comply. ATV attributed its failure to submit the 2014 Audited Accounts to a number of reasons, including the appointment of a new auditor to prepare the audited accounts, the request by the auditor for ATV to provide information before completion of the audit and the steps to be taken by ATV to seek approval of its board of directors for the outstanding audited accounts. ATV also requested a further extension of the submission deadline to November 14, 2015, which was rejected by the CA.
The CA took a serious view over the breach of ATV of Condition 25.1 of the Licence for the following reasons:
(a) ATV had already failed on two occasions to submit the 2014 Audited Accounts by the stipulated deadline of April 30, 2015, and the extended deadline of July 31, 2015. This was the third occasion that ATV had failed to meet the submission requirement by a further extended deadline which was set at the request of ATV;
(b) The reasons given by ATV could not justify its failure to submit the 2014 Audited Accounts to the CA by the further extended deadline. Given ATV's repeated failure to comply with the submission deadlines, the CA did not consider it justifiable to further extend the submission deadline as requested by ATV; and
(c) The non-compliance clearly reflected an irresponsible attitude on the part of ATV in making serious endeavours to meet its regulatory obligations and to take heed of the warnings given by the CA of the serious consequences of further contravention of the licence requirement.
In view of the severity and nature of the multiple breaches by ATV, the CA decided to impose (a) a financial penalty of $100,000 in respect of ATV's failure to submit the 2014 Audited Accounts by the further extended deadline of October 31, 2015, and (b) a financial penalty of $10,000 per week in respect of ATV's continuing failure to submit the 2014 Audited Accounts, to accrue from November 1, 2015, to the date when ATV finally furnished the said accounts to the CA.
Broadcast complaints
--------------------
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) A complaint against the radio programme "The Fun Box" broadcast on the CR 1 Channel of Hong Kong Commercial Broadcasting Company Limited (CRHK) on April 24, 2015. The CA decided that CRHK should be warned to observe more closely the relevant provision in the Radio Code of Practice on Programme Standards; and
(b) Complaints against the television programme "Sunday Report" broadcast on the Jade Channel of Television Broadcasts Limited (TVB) on August 23, 2015. The CA decided that TVB should be strongly advised to observe more closely the relevant provision in the Generic Code of Practice on Television Programme Standards.
Details of the above cases are at: www.coms-auth.hk/filemanager/en/content_713/appx_20151215_en.pdf.
Ends/Tuesday, December 15, 2015
Issued at HKT 16:04
NNNN
