Ministry’s concern over PTV losses
ISLAMABAD – In a Press release issued in Islamabad on May 2 the Ministry of Information referring to The Nation report of May 02 regarding the financial status of PTV, stated that the drop in PTV revenues has been duly noted by the Ministry and the Board of Directors with serious concern.
Of particular concern, a spokesman of the Ministry said, has been the sharp drop of nearly Rs250 million in nine months in the advertising revenues of PTV-I, the main entertainment channel.
It was also noted that PTV-World was not yet fully converted to a 24-hour News and Current Affairs Channel as its Prime Time continues to be utilized for entertainment programmes, it said. The Board has directed the management to come up with a business plan to address the situation. It further said the PTV receivables are part of the revenue cycle and should not be confused with the reduction in revenues and losses of the current year.
As for the award of contract for Channel-3 to a private party, the spokesman said, the decision will be taken by the Board transparently and in the best interest of PTV. The present delay in awarding the contract is due to the change of mind by the management which had earlier, clearly and strongly, recommended the award of the contract to the party identified in The Nation report. The Board has asked the management to furnish cogent reasons for the reversal of its own recommendations and a decision will be taken as soon as such information is furnished to the Board of Directors, the spokesman concluded.
Abdul Jabbar Chief Executive of Sports Star International also issued a Press release. It said the company had bid the highest amount in the open tender invited by PTV. ‘In fact, our offer was further increased through subsequent negotiations with the current PTVmanagement. We were then informed in black and white that our case had been approved and would be moved for formal approval before the PTV Board of Directors. We were later told that it had been principally approved by the BOD as well. What transpired after that has been a baffling affair for us because we were then told that the management had reversed its earlier recommendation and did not want to award us the contract any longer. This unfair change of mind by PTV has in fact damaged our reputation and hurt us financially as well. It would be correct to say that in this case we are the victim of PTV’s whimsical policies.
It further said the company only last month paid Rs40 million to PTV when approached on the grounds that PTV was facing serious cash flow problems and needed support from its business associates.
As for any remaining payments due to PTV, these are the routine amounts, which are always in the pipeline owing to the ongoing nature of business between the organizations. “Such credit facilities are being routinely extended to all PTV associates and we are not an exception in any manner. As a matter of fact, among PTV business associates, we are the second highest revenue generators for the channel for the last 15 years.” It said the SSI is not a defaulter as the contract covering USA is between PTV and another third party and SSI has nothing to do with it.
For the UK territory, our revised payment schedule has already been submitted to the board. Such revisions are forced by the inefficiencies of PTV’s finance division which fist tends to raise padded receivable statements, which are ultimately cut down sharply upon reconciliation. This situation cannot continue indefinitely like this and must be fixed if PTV is to remain a viable television channel, the press release said.
Source: The Nation
Date:5/3/2004
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