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Monday 15 March 2010
Better auditing behind arrest of TVB five
New management and tighter internal auditing were the key changes at broadcaster TVB which lead to the arrest of the station’s flamboyant general manager and prominent host on corruption charges, insiders say.
Alert station chiefs found the numbers didn’t add up
Vivienne Chow 14 March 2010
New management and tighter internal auditing were the key changes at broadcaster TVB which lead to the arrest of the station’s flamboyant general manager and prominent host on corruption charges, insiders say.
Stephen Chan Chi-wan and four others were arrested last week over allegations they were outsourcing productions and making TV stars take jobs at cut-price rates.
People familiar with the broadcaster’s operations said new managers - such as Mark Lee Po-on - had been keeping a far closer eye on the station’s budget over the last two years.
This included a new stringent internal auditing system and careful reviews of production budgets.
The internal audits had uncovered some odd accounting and a report was subsequently submitted to the TV station’s management. It led to an internal investigation of Chan’s dealings.
Lee was promoted to group general manager in September, above Chan, who became a household name with his popular talk show Be My Guest and his role at the top of TVB’s management structure.
But TVB would not comment on where the report of the alleged graft had come from.
On Thursday, Chan and the broadcaster’s head of business development, Wilson Chan, prominent variety show executive producer Wilson Chin Kwok-wai, TVB artist Ning Jin and Edthancy Tseng Pei-kun, Stephen Chan’s former assistant who is now director of six companies including an advertising and production company, were arrested by the Independent Commission Against Corruption after it had received a report alleging graft.
The commission said Stephen Chan and Wilson Chan allegedly accepted advantages from a director of an advertising company for helping the company secure service contracts related to various entertainment shows produced by the broadcaster.
The ICAC said Stephen Chan and Chin were alleged to have induced TVB stars to appear in shows produced by the advertising company at much less than their normal rates.
Some A-list TV stars and production staff have also been interviewed by graftbusters. The five suspects were released on bail on Friday night and so far no charges have been laid. The ICAC declined to reveal more details of the case.
The new management had streamlined TVB’s operations, those familiar with the situation said.
“In the past, people would follow directions depending on who was in charge, but now there are a clear set of rules that they must stick to,” one employee said.
An example was the decision to cut back on overseas filming for the Miss Hong Kong beauty pageant. Previously, management never questioned the budgets submitted by production teams, which often numbered more than 100 people.
“But now they question every detail. So the number of crew has been cut to 50 or 60 people,” one said. “It is a new style of management.”
TVB’s external affairs deputy controller Tsang Sing-ming said he sent text messages to Stephen Chan and the others after they were released but only Chin had replied. “He only said thank you for your concern,” Tsang said, adding that the families of those arrested had not sought help from the broadcaster.
Reporters maintained a vigil outside Chan’s home in Argyle Street, Ho Man Tin, last night, the same address Tseng registered for one of his six companies. Chan and Tseng are reportedly close friends.
Many of those who have worked with Chan are still puzzled by his arrest, with many commenting on his intelligence and sharp wit. “He’s kind and very helpful to colleagues,” said a TVB veteran, who has worked closely with Chan.
The veteran said Chan “had worked as a government administrative officer. He is smart and very sharp at his job. This is very strange”.
Chan is also a graduate of the University of Hong Kong, completing his studies when graduates were still a rare breed in the city.
Peter Lam Yuk-wah, vice-president of the Televisioners Association, said TV stations, which fall into the list of some 100 public bodies monitored by the Prevention of Bribery Ordinance, should have stringent management and tendering systems.
The Commissioner of Independent Commission Against Corruption, Timothy Tong Hin-ming, said the graftbuster received an average of 10 complaints a year about TV stations.
According to the Prevention of Bribery Ordinance, anyone who accepts advantages without the authority of their employer is guilty of an offence.
2 comments:
Better auditing behind arrest of TVB five
Alert station chiefs found the numbers didn’t add up
Vivienne Chow
14 March 2010
New management and tighter internal auditing were the key changes at broadcaster TVB which lead to the arrest of the station’s flamboyant general manager and prominent host on corruption charges, insiders say.
Stephen Chan Chi-wan and four others were arrested last week over allegations they were outsourcing productions and making TV stars take jobs at cut-price rates.
People familiar with the broadcaster’s operations said new managers - such as Mark Lee Po-on - had been keeping a far closer eye on the station’s budget over the last two years.
This included a new stringent internal auditing system and careful reviews of production budgets.
The internal audits had uncovered some odd accounting and a report was subsequently submitted to the TV station’s management. It led to an internal investigation of Chan’s dealings.
Lee was promoted to group general manager in September, above Chan, who became a household name with his popular talk show Be My Guest and his role at the top of TVB’s management structure.
But TVB would not comment on where the report of the alleged graft had come from.
On Thursday, Chan and the broadcaster’s head of business development, Wilson Chan, prominent variety show executive producer Wilson Chin Kwok-wai, TVB artist Ning Jin and Edthancy Tseng Pei-kun, Stephen Chan’s former assistant who is now director of six companies including an advertising and production company, were arrested by the Independent Commission Against Corruption after it had received a report alleging graft.
The commission said Stephen Chan and Wilson Chan allegedly accepted advantages from a director of an advertising company for helping the company secure service contracts related to various entertainment shows produced by the broadcaster.
The ICAC said Stephen Chan and Chin were alleged to have induced TVB stars to appear in shows produced by the advertising company at much less than their normal rates.
Some A-list TV stars and production staff have also been interviewed by graftbusters. The five suspects were released on bail on Friday night and so far no charges have been laid. The ICAC declined to reveal more details of the case.
The new management had streamlined TVB’s operations, those familiar with the situation said.
“In the past, people would follow directions depending on who was in charge, but now there are a clear set of rules that they must stick to,” one employee said.
An example was the decision to cut back on overseas filming for the Miss Hong Kong beauty pageant. Previously, management never questioned the budgets submitted by production teams, which often numbered more than 100 people.
“But now they question every detail. So the number of crew has been cut to 50 or 60 people,” one said. “It is a new style of management.”
TVB’s external affairs deputy controller Tsang Sing-ming said he sent text messages to Stephen Chan and the others after they were released but only Chin had replied. “He only said thank you for your concern,” Tsang said, adding that the families of those arrested had not sought help from the broadcaster.
Reporters maintained a vigil outside Chan’s home in Argyle Street, Ho Man Tin, last night, the same address Tseng registered for one of his six companies. Chan and Tseng are reportedly close friends.
Many of those who have worked with Chan are still puzzled by his arrest, with many commenting on his intelligence and sharp wit. “He’s kind and very helpful to colleagues,” said a TVB veteran, who has worked closely with Chan.
The veteran said Chan “had worked as a government administrative officer. He is smart and very sharp at his job. This is very strange”.
Chan is also a graduate of the University of Hong Kong, completing his studies when graduates were still a rare breed in the city.
Peter Lam Yuk-wah, vice-president of the Televisioners Association, said TV stations, which fall into the list of some 100 public bodies monitored by the Prevention of Bribery Ordinance, should have stringent management and tendering systems.
The Commissioner of Independent Commission Against Corruption, Timothy Tong Hin-ming, said the graftbuster received an average of 10 complaints a year about TV stations.
According to the Prevention of Bribery Ordinance, anyone who accepts advantages without the authority of their employer is guilty of an offence.
Additional reporting by Kobi Chan
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