2010 TVB corruption scandal

Background

Chan was said to control a shell company through his personal assistant to which he was alleged to have awarded production contracts from TVB. The shell company had no production facilities of its own but outsourced the work to other production houses at a much lower rate than it receives from TVB, pocketing the difference the shell company having accumulated as much as HK$10 million over the years. This outsourcing is itself thought to be unnecessary since TVB has the resources in house to handle these productions. One of the arrested is the manager of artist's contracts at TVB and using this position many actors and actresses had been asked to perform in major shows and other functions, and even ribbon cutting ceremonies for free or at very low pay in return for possible future favour. These artists included Bernice Liu, Moses Chan, Raymond Lam, Bosco Wong, Tavia Yeung and Charmaine Sheh.

Prior to the arrest, in late February 2010, speculation existed that TVB deputy chairman Mona Fong had dropped Stephen Chan from her inner circle after he failed to accompany her to a variety show. Chan was also blamed over a copyright issue with the Hong Kong Recording Industry Alliance, and has not been popular with the staff after he laid off hundreds of employees in 2009. Many other artists however have expressed regrets in the situation.

Arrests and release on bail

Chan and the four other were arrested on 11 March 2010 and were released on bail without being charged, the next day. On 18 March 2010, Chan made a public appearance for the first time since his arrest. Chan said that the mask he wore while returning home was because of a shaving wound refuting media reports that it was related to his arrest. Chan also thanks those who sent text messages of support.

Chan was cleared of charges relating to some activities at TVB in November 2010, but three other incidents relating to bribery and conspiracy to defraud are still being investigated. Chan resumed his TVB duties on 16 November, but his duties will not involve artist management and casting arrangement.

Acquittal

Following a trial Chan and his co-accused were acquitted of all charges in the September 2011. The prosecution could not prove beyond a reasonable doubt that Chan knew the details of a payment of HK$300,000 withheld from TVB and five actresses. The court also found that Chan was paid to be an administrator at TVB, and any remuneration he received from the Olympic City shopping mall was as a performer and this did not conflict with his role at TVB.

Following Chan's acquittal a number of artists identified with the Chan faction at TVB have failed to have their contracts renewed.

References

References

1. (12 March 2010). "Five arrested for alleged corruption over entertainment show contracts". Independent Commission Against Corruption.
2. link. (15 March 2010 ." ''Show graft.'' Retrieved 12 March 2010.)
3. MAK, Adrian Yau Kee. (11 March 2010). "Announcement". Television Broadcasts Limited.
4. link. (29 June 2011 ." ''Rumors rife over Chan for weeks.'' Retrieved 12 March 2010.)
5. Moy, Patsy. (19 March 2010). "TVB's Chan stays calm in storm". The Standard.
6. O'Keeffe, Kate. (16 November 2010). "TVB's Chan to Resume Manager Duties". The Wall Street Journal.
7. (2 September 2011). "TVB boss cleared in corruption case". [[RTHK]].
8. Roland Lim. (2 September 2011). "TVB GM Stephen Chan acquitted of bribery, fraud charge". Channelnewsasia.com.
9. Guo Jiaxue. (3 September 2011). "Stephen Chan found not guilty of corruption charges".