The NCC will create a task force to survey the books of cable systems

• By Shelley Shan / Staff Reporter

The National Communications Commission (NCC) is to create a special task force to review the financial statements of cable television systems after Net Wave Cable Systems Co was found guilty of failing to record revenue from service charges. subscription in its accounts for the past 10 years.

NCC commissioners at the agency’s weekly meeting yesterday ruled that Net Wave would be fined NT$4 million ($143,451) for violating the Cable Radio and Television Act (有線廣播電視法).

Financial problems at the cable system operator, which serves subscribers in Taipei’s Zhongzheng (中正) and Wanhua (萬華) districts, came to light last year following an allegation that the management allegedly embezzled NT$130 million in subscription fees.

In April last year, the Taipei District Attorney’s Office launched an investigation into Net Wave Chairman Lee Hsi-chin (李錫欽) and his wife, as well as other officials allegedly involved. in the scandal.

Due to financial problems at Net Wave, the NCC in May granted the cable system a one-year operating license after reviewing its license renewal application.

NCC Vice Chairman and Spokesman Wong Po-tsung (翁柏宗) said the commission also launched an administrative investigation last month.

From 2011 to 2020, the company did not list subscription fee revenue in its financial statements, Wong said, adding that unlisted funds amounted to NT$168 million.

Net Wave was fined NT$1.5 million for violating Section 44 of the Act, which requires cable system operators to follow the accounting system and its standard procedures issued by the central agency regulatory, Wong said.

The commission fined the company an additional NT$2 million for violating section 45 of the law, which requires cable operators to set aside 1% of their annual operating revenue and submit it to the NCC for the creation of a special fund.

Lee was also fined NT$500,000 for violating Article 15 of the Administrative Penalty Law (行政罰法) due to his mismanagement of the cable system, Wong said.

The company had retroactively listed its income from 2011 to 2020 in its financial statements last year, the commission said, adding that it had paid NT$1.54 million in accordance with Section 45 of the law.

“We also asked Net Wave to find a new president and two new supervisors to replace the current ones by August 30. Supervisors should have a background in law and accounting,” Wong said, adding that it was the first time the stewards asked. a cable operator to change its management.