The high-profile host of TVB's Be My Guest was yesterday taken into custody by the Independent Commission Against Corruption (ICAC) 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 (陳永孫); variety department executive producer Wilson Chin Kwok Wai (錢國偉); 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 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 (Thursday, March 11, 2010). 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.
Rumors rife over Chan for weeks
Just weeks ago, rumors were circulating about Stephen Chan's future, reportedly including talk that he had resigned as general manager after falling out of favor with top TVB management.
Late last month, there was speculation TVB deputy chairman Mona Fong Yat Wah (TVB founder Sir Run Run Shaw's wife) had dropped him from her close circle after he failed to accompany her to a variety show. However, Chan denied suggestions he had already resigned.
It was also said TVB had put the blame on Chan after the station was involved in a widely reported copyright row with the Hong Kong Record Industry Alliance. The alliance, including top record labels, had offered TVB a plan under which copyright fees would be pegged to the station's annual advertising revenue, which Chan said was not acceptable. Because of the dispute, popular singers Kay Tse On Kei, Eason Chan Yik Shun and Hins Cheung King Hin missed the annual TVB Jade Solid Gold Top 10 Awards in January.
In a radio program, Chan denied he was responsible for the breakdown in talks, saying it was a collective decision of the management.
Chan was also not popular with some staff after he sacked hundreds of employees last year to "tie in with the new media developments."
Chinese People's Political Consultative Conference delegate and veteran actress Liza Wang Ming Chun said she was shocked at Chan's arrest as he was nice to all TVB people.
A number of TVB staff also said they were astonished.
TVB artist Patrick Tang Kin Wang, said to be one of Chan's favorites, admitted he was concerned as Chan had helped him a lot in his career.
"I did not call him but sent him an SMS," he told reporters. "I am a bit worried because he is like my master. He helped me a lot. When I left TVB, it was he who tracked me down and asked me to rejoin the company."
When asked whether the arrest would affect Chan's position on the Tourism Board, a spokeswoman for the Commerce and Economic Development Bureau said it was not proper for the bureau to comment on an ICAC investigation.
Hands-on operator is a natural on either side of the camera (Stephen Chan bio before the corruption)
General manager Stephen Chan often takes center stage at TVB.
The 51-year-old is host and presenter of the show Be My Guest, in which the city's movers and shakers reveal their secrets and their career highs and lows.
Guests invited to dine with him on the show have included Chief Executive Donald Tsang Yam Kuen, singer Gillian Chung Yan Tung of Twins, former secretary for commerce and economic development Frederick Ma Si Hang and City Telecom chairman Ricky Wong Wai Kay.
Chan, a 16-year veteran of TVB, was promoted to general manager in 2004. He graduated with a first-class honours Bachelor of Arts degree from the University of Hong Kong in 1981.
After university, he worked for the government as an administrative officer for a decade, during which he was sent to study in Britain for a year.
In the 1980s, Chan also hosted a variety of programs at Radio Television Hong Kong, under the name of Wai Ka-ching.
After a decade of government work, Chan joined Commercial Radio, and later moved to TVB as controller of programs in 1994. Two years later, he took charge of the program division and external affairs division.
In 2002, he was promoted to assistant general manager and two years later to general manager.
In the program Vanishing Glacier, Chan, as a guest host, flew to the Arctic to record the impact of global warming.
0 comments