Major ATV shareholder halted fund injections for wage payments after losing civil suit, Hong Kong court hears
The executive director of Asia Television, Ip Ka-po, yesterday revealed in court for the first time his reasons for sticking with the cash-strapped broadcaster and offered a detailed account of the struggle ATV faced as investors halted funding at a critical moment last year.
Coming to his own defence at Sha Tin Court, Ip - who was appointed to his post in March last year - said he had stayed in part because he believed he had what it took to turn the ailing station around.
Before rising to the top post, Ip said he specialised in production and marketing.
"I wanted to produce programmes which Hong Kong people love, and change their disapproval for ATV," he said, adding that he took heed of complaints, such as repetitive programme schedules, that viewers had been making against the broadcaster.
He also said he chose to stay because he cared for the 700-odd employees, who might lose their jobs if he left. He was touched by the staff who remained, despite him urging them to go and find new pastures.
Of the 60-odd employees who departed, he said: "Most of them left in tears."
Ip, 59, has pleaded not guilty to 102 summonses regarding his role in ATV's failure to pay 24 staff members on time for a sum of HK$1.13 million between July last year and January.
The court had earlier heard how the network's bank accounts, to which Ip had access, held more than HK$9 million in deposits at one point while staff were going unpaid.
Yesterday, the director also told magistrate Cheung Kit-yee that Wong Ben-koon, ATV's then major shareholder, suddenly ceased additional funding for the station in December after losing a lawsuit to another shareholder, Taiwanese snack tycoon Tsai Eng-meng - who argued he was being unfairly treated. Wong was ordered by the High Court to sell 10.75 per cent of his shares as a result of the court battle.
Ip said when he signed up for the post, senior vice-president Stephen Luen Chun-kwok told him that he would not have to worry about legal and financial matters after Ip expressed his lack of knowledge in the area.
Normally, Luen and another vice-president, Nicholas Lee, would contact Wong Ben-koon and ATV's majority investor Wong Ching for the broadcaster - which earned just about HK$10 million per month but had to put up HK$14 million - to pay monthly wages, Ip explained.
But Wong Ching halted the loan in September, prompting Ip to contact Wong Ben-koon directly instead.
The case continues today.
