TV3 ownership scandal - Malaysians demand money back

(The Statesman) -- The controversy surrounding ownership of TV3, the nation’s first privately owned television network, now points to the Malaysians breaching a statutory requirement by parading Eddie Addo as a shareholder with a 30 per cent stake, whereas in reality Eddie Addo paid nothing, at least in the initial stages.

Reliable sources disclosed to The Statesman that owners of TV3 of Malaysia are now pressuring Eddie Addo and his friends to cough out for the full worth of almost a third of the TV station, which was fashioned out of the Ghana Film Industry Corporation divestiture programme.

The December 21 edition of The Statesman conjectured that Totobi Quakyi, the Minister in charge of the privatization scheme was in all but name the beneficiary of 30 per cent of TV3, with the Malaysians having 70 per cent, leaving Ghana with 30 per cent of Ghana Film Company, which through a clever manipulation of the company law provisions, has no shares in TV3, the main project behind the entire divestiture.

After the story, a close associate of Eddie Addo told the Statesman that whereas some political personalities may be behind Eddie Addo’s 30 per cent share, the Ghanaian entrepreneur is by his own right rich enough to own the 30 per cent or indeed the whole TV3 all by himself.

This, however, begs the question why then did the Malaysians have to fund his 30 per cent acquisition and subsequently refusing to pay the Malaysians after five years, since TV3 was set up in January 1997? This has led to cement the supposition that Eddie Addo was a mere front, who only agreed to do on the assurance that he did not have to pay for the shares through his personal funds.

But Janet Carboo-Dankwah, Public Relations Manager of TV3 denied knowledge about the pressure being mounted on Eddie Addo to honour his financial commitments to the company. Carboo-Dankwa, who does not know the contact number of her employers, was rather quick to state there is no outstanding payments to be made by Totobi’s closest buddy.

The bizarre revelation that the Malaysians are now threatening to bring in new partners if their money is not paid indicates that the Malaysians deceptively exploited the Ghanaian law, which requires a foreign-owned company to have some local shareholders. Thus, if it cannot be shown that the Malaysians did in fact “borrow” money to Eddie Addo for the 30 per cent share then the whole deal is probably illegal as the actual beneficial ownership, is in the absolute hands of the foreigner, does definitely contravenes the laws of the land, therefore making the contract voidable.

TV3 Network Ltd., is a privately owned company set up in January 1997 barely two months after the divestiture of Ghana Film Industry Corporation (GFIC) to the Ghana Film Company. The Ghana government, which then owned GFIC was not given a stake in the new enterprise emerging from the divestiture simply because it was said to be a private business.

According to publications in two leading Malaysian newspapers, copies of which are available to the Statesman, Totobi Quakyi’s visit to Malaysia in August 1996 was to finalise the deal between Sistem Television, owners of TV3 Malaysia and the Ghana’s Divestiture Implementation Committee (DIC) on the acquisition of GFIC for broadcasting.

The New Strait Times and The Star of Kuala Lumpur reported in their August 20, 1996 editions of the signing agreement for TV3 “to help Ghana set up its first private station network.” The Malaysian TV3, the reports said, “will undertake the project through its subsidiary, Amity Valley Sdn Bhd together with another Malaysian company, Asian Panorama Sdn Bhd, and Ghana Films Industry Corporation.”

A follow-up report in Friday August 23 edition of New Straits Times was emphatic to state that the joint venture between the TV3 Malaysia and GFIC “will apply for licences and approvals to own and operate a private television network, FM radio stations and also look into other areas in the broadcasting industry relegating the core business of GFIC to the background. The new company the newspaper added, “will also negotiate with DIC, the acquisition cost of usable assets of the Ghana Film Industry Corporation.”

Interestingly, however, at the time the agreement was being signed the then Managing Director of GFIC, Victor E.K. Anti, who was on Totobi’s team to Malaysia was not aware of the deal, raising questions about transparency of the divestiture.

To confirm fears of discerning minds, when TV3 Network eventually took off in Ghana the people were told that it is a privately owned company with Totobi’s closest friend, Eddie Addo, as the only indigenous shareholder, in a stark contrast to the Kuala Lumpur agreement, which made provision for government participation. GFIC with all its assets was divested for a paltry $1.4 million.