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June 3, 2014

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CORRUPT MEDIA - A tender with only one bidder for rights to digital frequencies

The government considers it perfectly acceptable to award the broadcast rights for the full range of digital frequencies for only 16,777 euros a month for MEGA, ANT1, SKAI and Alpha.

That the tender for the full range of digital frequencies had only one bidder (the company DIGEA whose shareholders include all of the major private Greek channels) and that the right to use this public asset for 15 years was sold for a total of 18 million euros (which amounts to 16,000 and some change for each participant per month) is a “road of progress and development” which creates “conditions of healthy competition,” according to the Deputy Minister for Infrastructure Michalis Papadopoulos.

Responding to a parliamentary question from SYRIZA MP Zoe Konstantopoulou, the minister skilly dodged any personal responsibility for the fact that the tender process went ahead with only one bidder. He stated that the process had been overseen by the Hellenic Telecommunications and Post Commission (EETT) which, “is an independent administrative body which is competent to conduct the tender.” Politically however he did support the decisions made by the Commission saying that it, “protected completely the state’s interests” while, “adhering entirely to the strictures of the European and national legislative framework.”

Specifically over the question of the price of 18 million euros - significantly less than the 715 million euros at which the rights to the frequencies were valued at by the company that was contracted to do so - the Infrastructure Minister was somewhat… vague. He stated that “the starting prices were agreed with a special team” (of unknown makeup) while subsequently “the prices were determined following recommendations,” (also of unknown source or content). However he still maintained that the practices followed were “based on an internationally recognized methodology!”

The deputy minister made clear that the government is in no way considered a cancellation of the contract saying, “there is no provision which stipulates that the process must be cancelled in the event that only one bidder takes part.” Additionally he stated that the developments had meant that the state broadcaster NERIT would broadcast without paying.

It should be noted that the 18 million euro contract was for the broadcast rights for 15 years, meaning that DIGEA will provide the state with revenue of about 220,000 euros a year.

For her part Zoe Konstantopoulou threw out jabs over the deal saying it appears, “that’s why MEGA channel comes top of the European ballots of New Democracy and Elia [PASOK]”

Konstantopoulou added that if it that wasn’t the case MEGA news pundit Pretendenderis “wouldn’t conceal from the public that the debt is not sustainable.”

PressProject


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