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ftm Radio Page - April 6, 2012

Claims filed in Hungarian radio expropriation
seeking “meaningful remedy”

The long simmering dispute between the Hungarian government and two former radio station owners has moved forward as claimants and respondents appointed arbitrators at the International Center for Settlement of Investment Disputes (ICSID), reported Bloomberg (April 4). Emmis Communications and Accession Mezzanine Capital applied for ICSID arbitration in January. Both companies claim “illegal transfer of the broadcast licenses from Slager (owned by Emmis Communications) and Danubius (owned by Accession Mezzanine Capital) to politically favored persons,” said Covington & Burling lawyer Eugene Gulland representing the claimants.

The ICSID will name a tribunal president within the next two months. Then the three-judge panel will begin hearing arguments. The case involves government rejection of radio license renewals in 2009, which the claimants say involved political cronies and demands for “favors”. The Hungarian government has steadfastly rejected the claims. (See more on media in Hungary here)

Both companies applied to the ICSID, which is part of the World Bank, after the now well-known media law changes by the government of Hungarian Prime Minister Viktor Orban “precluded any meaningful remedy,” said the joint filing. That “meaningful remedy” has been suggested in the range of US$50 million for each company, not including court costs. (JMH)

English radio channel doomed, says public broadcaster
Hedge fund managers could be upset

Swiss public broadcasting SSR-SRG Director General Roger De Weck visited the World Radio Switzerland (WRS) studios (April 2) to deliver the message personally that the SSR-SRG will recommend separating itself from WRS to its board this summer. The SSR-SRG has participated in an English language radio station, in several iterations, since the mid-1990’s. Mr. De Weck told staff the SSR-SRG might sell or simply close the station, which has operated in the present configuration as a wholly owned part of SSR-SRG since 2007.

WRS is the successor to World Radio Geneva (WRG), founded by the SSR-SRG and Reuters to serve ‘international Geneva’ with a dedicated commercial radio channel on FM. Geneva is home to over 200 UN organizations, NGOs and corporate headquarters within which all use English as their primary working language. And not to be forgotten are all those hedge funds moving in from London. But ‘international Geneva’ as an economic and social magnet has lost favor within populist-turning Swiss internal politics.

Year-old Web and cable channel Radio Frontier, based in Geneva, made known its willingness to fill any void created by the retreat of SSR-SRG. Anglo Media SA, owner of Radio Frontier, “has made its intentions known that it is prepared to offer English language news and information to the important international community on a privately funded basis,” said a company statement. (See full statement here) Threats by SSR-SRG to close WRG or WRS have accumulated over time.

“No decision has yet been made,” said SSR-SRG spokesperson Daniel Steiner, quoted by the Tribune de Geneve (April 4). “We are talking about a comprehensive process that takes several months.” (JMH)

Racist remarks lead to big fine
not satire

Poland’s media regulator National Broadcasting Council (NBC) levied a PLN 50,000 fine (about €12,000) against radio station Eska Rock (April 3) for “infringing upon the good name of Alvin Gajadhur,” the Polish-born former chief inspector at the Road Transport Ministry. In incidents dating through last year Eska Rock morning show DJs Michal Figurski and Kuba Wojewodzki referred to Mr. Gajadhur, whose father is from India, in negative and provocative terms the NBC deemed racist.

Mr. Gajadhur filed a criminal discrimination complaint against the two DJs last June but later dropped the action. At the time he was running for the Sejm. Eska Radio group program director Boguslaw Potoniec argued that the station should be held harmless as the morning show is “satirical in nature” and the complaint took comments made out of context.

“It can be concluded that Alvin Gajadhur was singled out because of the color of skin,” said the NBC statement imposing the fine. ”It is even more dangerous that listeners to the program are mostly young people.”

Eske Rock is classic rock formatted radio channel owned by Time Radio Group, which also operates Eska Radio and Radio Wawa. (See more on media in Poland here)

The NBC also fined the controversial Radio Maria PLN 4,000 (about €975) for surreptitious advertising. (JMH)

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