Malaysia

Awesome TV compounded RM250,000 for licensing breach

Station could have been shut but MCMC opts for fine

Updated 10 months ago · Published on 24 May 2023 5:10PM

Awesome TV compounded RM250,000 for licensing breach
On February 20 this year, Communications and Digital Minister Fahmi Fadzil said the Malaysian Communications and Multimedia Commission had summoned Awesome TV for a meeting regarding six offences related to the publication of defamatory material. – YouTube screengrab pic, May 24, 2023

by Arjun Mohanakrishnan

KUALA LUMPUR – The Malaysian Communications and Multimedia Commission (MCMC) has fined Awesome TV RM250,000 for various offences, including operating without a valid licence.

It is learnt that the licence was issued to Awesome Broadcasting Sdn Bhd but the licence is being used by Awesome Media Network Sdn Bhd.

MCMC previously said in a statement on February 21 that it has opened investigation papers against Awesome TV under Section 206 of the Communications and Multimedia Act 1998 over matters pertaining to the compliance of licence conditions.

Later in March, MCMC told the press that it is considering action against one of Awesome TV’s parent companies for a possible violation under Section 36 of the same act, which prohibits the transfer of ownership of a licence without the written approval of the minister-in-charge for communications and multimedia.

MCMC regulatory officers had on March 8 visited Awesome TV and met with its senior management and obtained documents as part of its investigations.

“The violation is sufficient for the MCMC to shut down the station but it proceeded to compound the station instead,” said a source.

However, with its financial troubles, it is anyone’s guess if Awesome TV will be able to pay the fine.

Troubled station running afoul of authorities

The troubled television station has been running afoul of the authorities over various news coverage, including false and inaccurate reports about the sacking of civil servants – that the current administration in Putrajaya plans to reduce the number of government employees.

On February 20 this year, Communications and Digital Minister Fahmi Fadzil said MCMC had summoned Awesome TV for a meeting regarding six offences related to the publication of defamatory material.

Fahmi added that Awesome TV committed its sixth offence when it falsely claimed that the government was planning to lay off 800,000 civil servants.

On November 6 last year, the broadcasting station faced criticism after online portals reported that Awesome TV’s Berita 7:57 program called on Malays to vote during the 15th general election to prevent other races from gaining power.

In response to the significant backlash from social media users labelling the reporting as racist, Awesome TV defended the broadcast in a statement, stating that their intention was merely to inform Malay voters that a new government might not be to their preference and could affect their welfare if they did not vote.

Then, in May last year, Awesome TV received further criticism for adopting a racial tone in its reporting on matters concerning Serba Dinamik Holdings Bhd and Sapura Energy Bhd.

In its Berita 7:57 report, Awesome TV accused the Securities Commission (SC) executive chairman Datuk Syed Zaid Jaafar Albar of failing to assist these two Bumiputera companies in their financial troubles and wrongly labelled him as a non-Malay.

The Berita 7:57 report on the SC executive chairman, like the other news coverage mentioned earlier, drew significant public backlash, prompting other portals to identify links between Awesome TV’s key individuals and Serba Dinamik Holdings.

According to checks with the Companies Commission of Malaysia, Awesome Media Network Sdn Bhd, which operates Awesome TV, has five directors: Datin Ezzan Zalilah Zulfadzli, Irwan Shah Abdullah (D.J. Dave), Datuk Mohamed Ilyas Pakeer Mohamed, Johan Mohamed Isyak, and Datuk Adam Mohamed Ilyas.

Johan and Mohamed Ilyas were previously independent director and chairman, respectively, for Serba Dinamik Holdings before their resignations.

According to Bursa Malaysia filings on November 24, 2021, Serba Dinamik Holdings said their resignation was driven by requirements imposed by Bursa Malaysia, which prohibited Johan and Ilyas from carrying out their duties in the company.

Johan also serves as deputy managing editor for Berita 7:57.

As for Ezzan Zalilah, she is the wife of Adam Mohamad Ilyas, who is the son of the former Serba Dinamik Holdings chairman.

Meanwhile, with regard to its shareholding structure, Awesome Media Network is owned by AP Holding Bhd, Ezzan Zalilah, and Awesome Broadcasting Sdn Bhd as the largest shareholder.

As for the company’s accounts, data suggests that Awesome TV is in poor financial health.

Artistes fees in dispute

In fact, only in November last year, Awesome TV was reported to be in debt after failing to settle payments owed to drama producers.

The Malaysian Television Producers Association deputy president Datuk A. Aida had said that several producers have waited almost a year for their payments and are considering taking legal action.

Several artistes, personalities and contractors have also claimed that Awesome TV owes them for work done.

Awesome TV responded with threats of defamation suits.

This prompted the National Film Development Corporation (Finas) to enter into the dispute as mediator to reach a settlement. The matter is still pending.

According to Awesome Media Network’s 2021 financial report, the company has current and non-current assets valued at RM18,743,509.

The company’s current and non-current liabilities are valued at RM106,871,383.

Awesome Media Network’s losses after tax are listed at RM53,063,307.

Similarly, like its subsidiary, Awesome Broadcasting recorded losses after tax for the year 2021 amounting to RM55,055,393. – The Vibes, May 24, 2023

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