The Audit Commission will issue a damning report tomorrow on RTHK, accusing the broadcaster of having a 'culture of non-compliance' with government guidelines and procedures, and criticising it for 'inadequacies in internal controls'. The report was compiled after a team of seven Audit Commission staff spent seven months in the offices of RTHK, examining its governance and management. A government source said: 'The corporate governance of RTHK has aroused public concerns, there is big room for improvement.' The report cites examples of irregularities within RTHK and its failure to comply with guidelines. It says fraud cases uncovered in the past few years highlighted the irregularities and inadequate internal controls within RTHK. The report also raises questions on matters such as staff overtime claims and expenses, some of which staff viewed as 'petty and unreasonable'. One example is the overtime claimed by the driver of Director of Broadcasting Chu Pui-hing. The report questions why the driver started his work day at 7am but did not finish until 11pm. It also queried why another driver needed to be sent to buy newspapers at 5.30am. 'The commission questioned RTHK's $10,000 payment for a table of 12 at the Hong Kong Journalists' Association's annual ball, a charity event, which exceeded the government limit on entertainment expenses per head,' a source familiar with the probe said. The latest investigation is the commission's second probe into RTHK since 2001. The first criticised RTHK's costly educational television programming. There have also been media reports that RTHK will be criticised for producing programmes at double the cost of those made by private broadcasters. Assistant Director of Broadcasting Cheung Man-sun rejected accusations the station had wasted public money in making costly programmes, and called on the public to give the station a 'fair verdict'. He said RTHK staff had tried their best 'despite administrative and political pressures', and the repeated probes by the Audit Commission had damaged staff morale. Mr Cheung said he would not comment on the probe until the report had been published, but asserted that RTHK had gone to great lengths to be cost-effective. Despite suffering a 15 per cent budget cut, RTHK's television airtime output had risen from 520 hours in 2000 at a cost of $500,000 an hour to 570 hours at $350,000 an hour now. This was comparable with private broadcasters, he said. Some lawmakers expressed concern the probe could deflect attention during the government review of public broadcasting from the issue of how to defend RTHK's editorial independence. 'Every government department has operational problems ... We are concerned at present with the future of RTHK and the discussion should not be sidetracked by these allegations,' Legco information technology and broadcasting panel member Ronny Tong Ka-wah said.