Local media 'give way' to Stephen Chan following corruption charges

In a press statement from the ICAC, the defendants are Stephen Chan Chi-wan, GM of TVB, Tseng Pei-kun, director of Idea EmpirePublisher (IEPCL); and Wilson Chan Wing-shuen, head of business development for the marketing and sales division at TVB.

Chan and Tseng face two counts of conspiracy for an agent to accept an advantage and two alternative charges including an agent to accept an advantage and offering an advantage to an agent.

The two corruption charges allege that between July 2009 and January 2010, Chan and Tseng conspired for Chan to accept a total of about HK$127,000 (US$16,353) from IEAP. In return, Chan was said to have participated or performed in an event and a show related to TVB's business or affairs.

Another charge alleges Chan and Tseng conspired to defraud TVB and artists of TVB between January and February 2010. They allegedly falsely claimed that the artists' attendance at an event was to show support for the release of Chan's book. They neglected to disclose that the event was arranged by IEPCL under sponsorship from a business corporation with obligation to invite said artists.

The remaining charge alleges Tseng and Chan conspired to defraud TVB between September and December 2009. They allegedly misappropriated HK$550,000 (US$70,822) from $5.2 million (US$ 669,594) due and payable to TVB from a business corporation under a commercial contract, by dishonestly and falsely creating a service agreement between TVB and IEAP whereby TVB was to pay HK$550,000 (US$ 70,822) to IEAP.
 
The press has been closely following the case after Chan's widely reported across all major titles including Apple Daily, Oriental Daily, SCMP, MingPao Daily this morning along with extensive coverage on radio shows and online.

Ray Wong, MD of PHD Hong Kong, said, “This news has relatively less impact on media agencies, as we are not involved in the production side, however our media negotiation with TVB would become harder, as their justification process would take much longer after Mr. Chan’s corruption case, as they need to justify why they give their business to a particular client."

Another undisclosed agency boss commented, "I believe the departure of Stephen will not have much impact on the relationship with media agencies."

Chan, commonly known as 'Master Chi Wan' in Chinese, is a high-profile senior executive at TVB. Among other things, his own talk show released on DVD and sponsored by Cartier, propelled him into the spotlight.

“It seems ICAC got some hard core evidence on the Stephen Chan case. This will surely be the hot topic over the table for mid autumn festival feasts,” said one undisclosed TV industry source.