The closure of a popular mandarin radio station - Wa!FM - has generated a lot of uneasiness. The issue is three-fold. First, the government has a role to play to prevent the closure. Second, the monopolistic nature of media ownership should be reviewed. Third, the government should investigate NTV7 and Synchosound Studio on scandals.     

The premature end of “KL Spring”?

Let me first establish that radio and TV stations are part of the public institution. Even if they are owned by private companies, they should not be treated as mere cash-cows. This House and the Government should take an interest in the issue of Wa!FM as well as the larger question of media ownership and monopoly.

Energy, Water and Communications Minister Datuk Seri Lim Keng Yaik told this House recently that even if a million people petitioned him, there is nothing the Government can do to stop Wa!FM’s private owner, Synchrosound Studio Sdn Bhd from closing it.

When I last checked this morning, only slightly more than 10,000 people had participated in the web petition (http://www.petitiononline.com/mod_perl/signed.cgi?WAFans). I concede that the number is not large, but is the Barisan Nasional government prepared to ignore them at its own peril?

What is at stake is not the sentiment of a segment of radio listeners; it is the reputation of the Abdullah Badawi administration. Wa!FM is a radio station that is best remembered for its popular 5:30p.m.-7:00p.m. talk-back programme which allows listeners to call-in and share their views on pertinent political issues. The existence of such a programme is much appreciated and widely seen as a sign of the relative openness of the Abdullah government, compared to the Mahathir era. Given the limited space and outlet in which the public can freely express their views and in such an unparalleled way as in Wa!FM, its closure would certainly be construed as “the end of ‘KL Spring’ even before it had really started.”

Free-to-air TV: Monopoly in the making

The closure of Wa!FM is part of a wider question of media ownership. The public attention devoted to Wa!FM is mainly because the radio stands out in the airing of public opinion coupled with the fact that there are only a handful of Chinese-language stations around. Out of 56 radio stations in the country, only four are Chinese-based. With a huge audience craving for contents in the Chinese language, the Government has a role to prevent the closure of Wa!FM as well as issuing more licenses for the setting up of Chinese radio stations.

The news that the MCA-owned The Star had purchased another radio station is outrageous. Ruling parties like MCA and UMNO are getting more and more entrenched in the media business to the point of no return. MCA-owned Nanyang Press group, which publishes Nanyang Siang Pau and The China Press, also own two radio stations, 988 and RED 104.9.

Although the line between media and political parties in this country has never been clear demarcated, the increasing attempt by BN parties to monopolize information through media ownership is shocking, especially in the age of globalization.

The acronym GLC referring to government-linked corporation had been imported from Singapore to denote companies in which the government holds a stake. I would like to introduce the acronym ULC or UMNO-linked corporations to denote UMNO-owned companies like Media Prima Bhd.

The case of Media Prima’s acquisition of NTV7 is one such blatant example of UMNO’s and BN’s disregard and disrespect for media independence. In July, Media Prima announced that it was assisting Natseven TV and its two related companies, Synchrosound Studio Sdn. Bhd. and Questseven Dot Com Sdn. Bhd., to restructure an undisclosed amount of the companies’ debts. (Synchrosound is the license holder of Wa!FM.)

Media Prima already owns TV3 and 8TV, with a combined TV advertisement share (adex) of 53% and audience share of 56%. Media Prima recently acquired CH-9 Media, owner of Channel 9, for RM41.44 million. It has enough on its plate. With the impending acquisition of NTV7, Media Prima would be the sole owner of all private free-to-air TVs. It is unhealthy to have a monopoly in media, and worse still, controlled by an ULC.

Scandals

The reason cited for the closure of Wa!FM is that Media Prima is initiating a re-branding process and that the radio is responsible for Sychrosound’s accumulated losses of RM55 million. That is not true. According to Synchrosound’s last annual company report submitted to Registrar of Companies in 2000, it had already accrued a debt of RM23 million. In other words, at least half of the debts had been accumulated before Wa!FM’s debut in 2003.

There are several questions I would like the Government and respective individuals to reply:

(1) The amount of debts Synchrosound and NTV7 have accumulated is substantial. I am not interested to go into private affairs but it is relevant to ask whether the multi-million divorce between Special Envoy with Ministerial Status in Higher Education Ministry Datuk Seri Mohd Effendi Norwawi and his wife of 33 years Farida Hashim has anything to do with the end of NTV7 and Wa!FM. In a Sunday Mail report on 10 July 2005, it was alleged that the settlement between the two is between RM25 million and RM100 million. Three days later, Media Prima declared its first step in the taking over process. The coincidence in timing is surprising. Is Effendi selling NTV7 to settle his marriage woes? Has he ever given thought of the welfare of hundreds of workers in the TV and radio stations? Most of them are likely to lose their jobs in a matter of a few years’ time after the merger with TV3.

(2) The adex of NTV7 is about 30%. The non-discount revenue projection is about RM90 million although the gross revenue after discount is much lower. Whatever the case, even if it is not generating profit from the substantial adex, it is most shocking to learn that NTV7’s debts over the years have totaled over RM200 million. I urge the Anti-Corruption Agency to investigate whether there is any irregularity in the running of the company, particularly its relation with a company called Air7 Sdn. Bhd.

(3) It is alleged that Wa!FM owes TM about RM8 million accumulated over the years. As a GLC, public interest obligates TM to explain why it did not compel Wa!FM to settle the debt and why no action had been taken earlier?

(4) It is further alleged that NTV7 and Wa!FM owes the Employees Provident Fund (EPF) more than RM1 million in arrears. Defaulting on EPF contributions is against the law. It should also be noted that EPF holds a 14.9% stake in Media Prima, which makes the case for an immediate EPF investigation into NTV7 and Sychrosound Studio Sdn Bhd even stronger. It would make a great mockery of EPF's core objective as a workers' retirement fund should EPF indirectly invest in a company that neglects its legal obligation to EPF and its employees.