TVB GM and talk-show host Stephen Chan is under arrest

[galvatron]

Show graft

Patsy Moy

Friday, March 12, 2010

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[SIZE=1][/SIZE]Flamboyant Television Broadcasts general manager and talk-show host Stephen Chan Chi-wan is under arrest for allegedly milking at least HK$10 million from his employer.The high-profile host of TVB's Be My Guest was yesterday taken into custody by the Independent Commission Against Corruption in relation to the activities of a shell company said to be under his control.
Also arrested on corruption charges were four others: TVB's head of business development Wilson Chan Wing- suen; variety department executive producer Wilson Chin Kwok-wai; actor Ning Jin; and Idea Empire Advertising and Production Company director Edthancy Tseng Pei-kun.
Stephen Chan, 51, allegedly controlled the shell company which accepted production contracts from TVB and then outsourced the work to other production houses, according to a source.
This allegedly allowed the shell company to accumulate as much as HK$10 million over the years. Some of TVB's top artists such as Bernice Liu, Moses Chan Ho, Raymond Lam Fung, Bosco Wong Chung-Chak, Tavia Yeung Yi and Charmaine Sheh Sze- man had been forced to perform in major shows and other functions, and even ribbon-cutting ceremonies, for free or at very low pay.
Each time the shell company would allegedly receive payments on their behalf and pocket the difference. The scam involved some of TVB's biggest shows such as Jade Singers Celebrate TVB Anniversary in October and last year's Jade Solid Gold, the source alleged.
The outsourcing was
$this->handle_bbcode_img_match('http://www.thestandard.com.hk/newsimage/20100312/6_2010031122283283250tvb1.jpg') unnecessary as TVB had the resources to handle these productions, including arrangements for venues, transport, costumes, make- up, lighting and music, the source said.All it did was allegedly allow the shell company to pocket hundreds of thousands of dollars for each show.
The ICAC is said to have launched the investigation two months ago following complaints. Chan was arrested at his Argyle Street home at 6am yesterday. There was another man inside his flat at the time who was not arrested. Ning Jin was escorted by ICAC officers to Metro Harbour View in Tai Kok Tsui while Wilson Chan and Wilson Chin were taken to ICAC headquarters in North Point.
The graftbusters yesterday refused to give details of the case. They only confirmed that five people - four from TVB and a director from an advertising and production company - had been "arrested in relation to corruption allegations."
But TVB identified the four staff involved, saying they had all be suspended from duty with immediate effect "pending further development."
The production of Stephen Chan's weekly show Be My Guest has been suspended but a prerecorded episode will be broadcast as scheduled. Shooting for it was completed on Wednesday with former TVB and i-Cable executive May Fung as Chan's special guest.
His duties will be temporarily handled by group general manager Mark Lee Po-on. The arrests came to light after TVB issued a statement at noon saying three of its staff had been involved in an ICAC investigation. Around 4.30pm, ICAC officers escorted Stephen Chan from its North Point headquarters to TVB headquarters in Tseung Kwan O to conduct further searches.
Chan, dressed casually in a gray jacket, did not answer questions from the media throng at the TVB office.
All the five arrested were held overnight at ICAC headquarters.


Link
http://www.thestandard.com.hk/news_d...376&con_type=3

[Guo Xiang]

Am not surprised. The entertainment line is afterall, one of the most corrupted and scandalous industries.

[pemberly]

so not worth it. over several years, 5 ppl only accumulated $10 mill HK dollars. that's so not worth losing your high profile jobs and going to jail.

[tweety365]

perhaps the $10 million is just some of the money ICAC could substantiate. i'm sure there are boatloads elsewhere. because for such a low amount, why would high profile execs want to waste their time?

[sehseh]

Alert station chiefs found the numbers didn't add up

Vivienne Chow
Mar 14, 2010

New management and tighter internal auditing were the key changes at broadcaster TVB which lead to the arrest of the station's flamboyant general manager and prominent host on corruption charges, insiders say.

Stephen Chan Chi-wan and four others were arrested last week over allegations they were outsourcing productions and making TV stars take jobs at cut-price rates.

People familiar with the broadcaster's operations said new managers - such as Mark Lee Po-on - had been keeping a far closer eye on the station's budget over the last two years.

This included a new stringent internal auditing system and careful reviews of production budgets.

The internal audits had uncovered some odd accounting and a report was subsequently submitted to the TV station's management. It led to an internal investigation of Chan's dealings.

Lee was promoted to group general manager in September, above Chan, who became a household name with his popular talk show Be My Guest and his role at the top of TVB's management structure.

But TVB would not comment on where the report of the alleged graft had come from.

On Thursday, Chan and the broadcaster's head of business development, Wilson Chan, prominent variety show executive producer Wilson Chin Kwok-wai, TVB artist Ning Jin and Edthancy Tseng Pei-kun, Stephen Chan's former assistant who is now director of six companies including an advertising and production company, were arrested by the Independent Commission Against Corruption after it had received a report alleging graft.

The commission said Stephen Chan and Wilson Chan allegedly accepted advantages from a director of an advertising company for helping the company secure service contracts related to various entertainment shows produced by the broadcaster.

The ICAC said Stephen Chan and Chin were alleged to have induced TVB stars to appear in shows produced by the advertising company at much less than their normal rates.

Some A-list TV stars and production staff have also been interviewed by graftbusters. The five suspects were released on bail on Friday night and so far no charges have been laid. The ICAC declined to reveal more details of the case.

The new management had streamlined TVB's operations, those familiar with the situation said.

"In the past, people would follow directions depending on who was in charge, but now there are a clear set of rules that they must stick to," one employee said.

An example was the decision to cut back on overseas filming for the Miss Hong Kong beauty pageant. Previously, management never questioned the budgets submitted by production teams, which often numbered more than 100 people.

"But now they question every detail. So the number of crew has been cut to 50 or 60 people," one said. "It is a new style of management."

TVB's external affairs deputy controller Tsang Sing-ming said he sent text messages to Stephen Chan and the others after they were released but only Chin had replied. "He only said thank you for your concern," Tsang said, adding that the families of those arrested had not sought help from the broadcaster.

Reporters maintained a vigil outside Chan's home in Argyle Street, Ho Man Tin, last night, the same address Tseng registered for one of his six companies. Chan and Tseng are reportedly close friends.

Many of those who have worked with Chan are still puzzled by his arrest, with many commenting on his intelligence and sharp wit. "He's kind and very helpful to colleagues," said a TVB veteran, who has worked closely with Chan.

The veteran said Chan "had worked as a government administrative officer. He is smart and very sharp at his job. This is very strange".

Chan is also a graduate of the University of Hong Kong, completing his studies when graduates were still a rare breed in the city.

Peter Lam Yuk-wah, vice-president of the Televisioners Association, said TV stations, which fall into the list of some 100 public bodies monitored by the Prevention of Bribery Ordinance, should have stringent management and tendering systems.

The Commissioner of Independent Commission Against Corruption, Timothy Tong Hin-ming, said the graftbuster received an average of 10 complaints a year about TV stations.

According to the Prevention of Bribery Ordinance, anyone who accepts advantages without the authority of their employer is guilty of an offence.

Source: SCMP.com

[sehseh]

Austin Chiu and Cheung Chi-fai
Mar 15, 2010

TVB (SEHK: 0511), the broadcaster embroiled in a bribery scandal, has decided not to rerun two drama series jointly produced with Hong Kong's graft-buster to educate the public about anti-corruption measures and will replace them with ghost stories.

The decision was made as the broadcaster yesterday said it was prepared to launch a review into its declaration and procurement systems when the bribery case was completed.

The 10 episodes featuring Independent Commission Against Corruption investigations in 2004 and 2009 were to be rerun from Thursday this week at 11am on TVB Jade.

They will be now replaced with Dark Tales II, also produced by the broadcaster, a collection of ancient Chinese tales focused on the struggle between good and evil. TVB said it was not good time to re-screen the dramas given the current graft investigation involving station executives.

"It is not an appropriate timing and we have decided to switch to Dark Tales II," said Tsang Sing-ming, TVB external affairs deputy controller, who said screenings of the anti-graft dramas would be embarrassing.

The ICAC last Thursday arrested TVB manager Stephen Chan Chi-wan and Edthancy Tseng Pei-kun, Chan's former assistant and a director of Idea Empire Advertising and Production Company.

The graft-buster suspects Chan accepted advantages from Tseng to help the firm secure service contracts for programmes produced by the broadcaster.

Also arrested by the ICAC were business development chief Wilson Chan, TVB artists Ning Jin as well as variety show executive producer Wilson Chin Kwok-wai.

The programme change was announced yesterday as the broadcaster's artists voiced support for greater transparency over their wages for appearing in shows - though many said they had no idea how much they were paid.

Their pay is under close scrutiny by anti-corruption officers who have been interviewing artists with ties to TVB.

One focus of the investigation is whether their pay was intentionally decreased to suit the budgets of others in the bribery scandal.

Actress Shirley Yeung Sze-ki, who was interviewed by ICAC investigators last Friday, said she believed her employer TVB would look after her interests.

"I'm not in a good position to say anything about it," she said. "I think the company will fight for the best for me."

Actor Kevin Cheng Ka-wing said artists normally would not know how much they were paid and who produced the events at which they performed because TVB management would represent them in pay negotiations.

On Saturday, ICAC chief Timothy Tong Hin-ming advised TVB to set out clear guidelines for subcontracting jobs, establish a mechanism to select subcontractors and increase transparency of the process.

The suggestion was backed by actor Bowie Lam Po-yee who said: "Hong Kong needs more such systems. It is the right thing to do to make Hong Kong fair and just."

In response to Tong's call, TVB external affairs deputy controller Tsang said the company had intended to review its systems.

"We have had the intention of doing this but it is now not a good time to do it," he said. "We might do it after the case comes to an end."

Source: SCMP.com