PCCW chairman's role in broadcaster and newspaper may breach rules
The Broadcasting Authority yesterday ordered PCCW Media, operator of NOW TV, to provide information on chairman and controlling shareholder Richard Li Tzar-kai's involvement in the internet broadcaster and the Hong Kong Economic Journal to see if cross-media ownership rules have been breached.
The move comes after Mr Li failed in November to sell his 23 per cent stake in PCCW, which controls PCCW Media, to a consortium led by former investment banker Francis Leung Pak-to.
A source close to the government said PCCW had previously not replied to a government request for information to clarify relations between PCCW and the Journal after Mr Li's deal with the newspaper was announced.
As the controlling shareholder of PCCW, Mr Li is not allowed to own a newspaper or other media assets unless he is given a waiver by the chief executive. When he took a 50 per cent stake in the Economic Journal in August last year it raised public concern that he was breaching the rules.
The Broadcasting Authority said in a statement yesterday: 'Following the vote by the minority shareholders of Pacific Century Regional Developments Limited (PCRD) on November 30, 2006 against the proposed sale of approximately 23 per cent of shares in PCCW by PCRD to Fiorlatte and Mr Francis Leung Pak-to, the authority has been pursuing inquiries with PCCW Media in relation to Mr Richard Li Tzar-kai's involvement in PCCW Media, through the holding company PCCW, and a local newspaper [the Journal].'
