Surayud told to check legitimacy of

[suriya@xxxxxxxxxxxx]

Subject: Surayud told to check legitimacy of deal  

                                        November 4, 1998 
  BROADCASTING / CONSTITUTIONAL CHALLENGE 

 Chuan demands
 answers on Channel
 7 contract extension

 Surayud told to check legitimacy of deal 

 Yuwadee Tunyasiri

 The prime minister has affirmed his order for the army chief to look
 into the extension of a firm's contract to run Channel 7 for more than
 30 years.

 Chuan Leekpai said he had discussed the issue with Gen Surayud
 Chulanont and had asked him examine the legitimacy of the deal.

 Mr Chuan wanted to know why Bangkok Television and Radio Co
 had been granted the 25-year extension when it had eight years of its
 contract left.

 Furthermore, he asked Gen Surayud if the extension was
 unconstitutional, if it damaged the army, which owns Channel 7, and
 whether the extension could be reviewed.

 The extension, made in May when Gen Chettha Thanajaro was army
 chief, has been challenged on the grounds the constitution places
 state-run media under an independent body yet to be established.

 Mr Chuan said he had received a copy of extended contract and had
 told the army chief to ensure the deal, and others involving
 army-owned media, are above board.

 The premier denied he had been aware of the extension in advance,
 saying he had just learned of it from the press.

 "So far, it has been reported informally that the contract was extended
 to allow Bangkok Television and Radio Co to be listed," he said. The
 stock exchange requires the company to have a state contract of at
 least 20 years.

 Under the extended contract, the company will pay the army 150
 million baht annually in the first three years, with an annual increment of
 10 million baht every three years thereafter, or a combined royalty of
 4,670 million baht for the 25 years.

                                                       
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