NCC's Historic Mistake：Mirror Media Case Undermines President Tsai
The Storm Media, June 29, 2023
On the morning of June 29, during her opening speech at the 2023 World News Media Congress, President Tsai Ing-wen stated that in recent years, many international media professionals have set up stations in Taiwan, which confirms Taiwan's efforts to defend media freedom and freedom of speech. On the same day, however, the National Communications Commission (NCC) passed a resolution that cast a shadow over "Taiwan's defense of media freedom" and brought upon President Tsai the stigma of impeding freedom of speech through political power.
On June 28, the NCC approved the review of Mirror TV News Channel's application for changes in its personnel and company articles, as well as the issuance of a new license. NCC authorized the broadcasting of Mirror TV on Channel 86 of 32 cable television systems, including KBro and Taiwan Fixed Network, reaching approximately 2.63 million households and achieving a market share of 56.9 percent. This decision served as a crucial lifeline for Mirror TV, which was facing financial difficulties. However, it has been perceived as another instance of NCC’s intervention, influenced by political considerations, to support this controversial television media outlet.
Mirror TV, as the sole television news channel approved by the NCC in the past decade, has naturally attracted significant attention. Since its license application, Mirror TV has been immersed in controversies and become a battleground for political struggles between the Kuomintang (KMT) and the Democratic Progressive Party (DPP). The NCC had originally scheduled to review Mirror TV's broadcasting and changes in its board of directors and supervisors in May. However, during that time, the KMT caucus staged a sit-in protest in front of NCC Chairman Chen Yaw-shyang’s office and obstructed the meeting. Consequently, no decision was reached by the NCC that day. The current NCC review has been criticized for taking place while the Legislative Yuan is in recess, highlighting its intention to ensure Mirror TV's broadcasting.
This is not the first time NCC has tried to protect Mirror TV. Since Mirror TV submitted its license application, it has received questioning and criticisms of its shortcomings both externally and internally within the NCC. However, Mirror TV has been repeatedly given the opportunity to address these concerns by submitting amendments. In contrast to other television stations, which typically go through around 10 rounds of amendments for their license applications, Mirror TV has undergone over 30. This pattern resembles allowing a student, who was initially at risk of failure or dismissal, to continuously take makeup exams until they ultimately obtain their graduation certificate.
Furthermore, there are several significant controversies surrounding Mirror TV, some of which remain unresolved to this day including the following:
1. Non-standard procedures for replacing the chairman, as well as five changes in personnel of important positions within a span of two months, including its chairman and general manager.
2. The television station is heavily influenced by political factors, with the presence of key figures associated with President Tsai involved in both the licensing and personnel matters of Mirror TV.
3. Chairman Pei Wei of Mirror TV directly informed the directors that Mirror TV’s case was a directive from the president. Regardless of who the premier is, the case must be approved.
4. There are intricate financial ties between Mirror TV and Mirror Media (Mirror Weekly) with ongoing rumors of funds being drained from the television station to support the magazine.
Moreover, Chen Chien-ping, the former chairman of Mirror TV who was removed from his position, filed a report in May of last year accusing current Chairman Pei, who is also the major shareholder and behind-the-scenes controller of Mirror TV, of violating the Company Act, Commercial Accounting Act, as well as allegations of fraud and breach of trust. The case is still under investigation.
With these controversies yet to be clarified, the hasty approval of Mirror TV's broadcasting raises further questions from various sectors. Although the NCC claims to respect the criminal investigation process and judicial review outcomes, they not only failed to suspend the review due to the lack of conclusive results from the judicial investigation but also used the ongoing investigation to absolve themselves of their regulatory responsibilities.
Mirror TV has engaged in frequent transactions with Pei and his subsidiary Mirror Media, which goes beyond the accusations made by Chen. These transactions are suspected of benefiting Mirror Media at the expense of Mirror TV shareholders and even involve national security concerns.
Mirror Media primarily relies on loans from MMG, an overseas company owned by Pei. The source of funds for such offshore tax haven paper companies is often opaque, and it is unclear whether any Chinese capital is involved. In the provisions attached to the approval of Mirror TV's license, the first item under "Reservations of License Revocation Rights” states that “the company shall not engage in news production or business operations under direct or indirect instructions, commissions, or funding from infiltrating sources, nor accept direct or indirect investments from infiltrating sources.” Given the close financial relationship between Mirror Media and Mirror TV, it is important to determine whether or not Mirror Media has “received direct or indirect instructions, commissions, or funding from infiltrating sources.” The NCC should provide a clear explanation to the public on this matter.
The opposition party has been criticizing the Mirror TV case, claiming that the NCC is following the will of the DPP and disregarding public opinion. This gives the impression that the NCC officials are dutifully serving the party and the government. However, the stark contrast on June 29 highlights the absurdity of the situation. In the morning, President Tsai proudly presented Taiwan's accomplishments in safeguarding press freedom to international journalists. Yet, in the afternoon, Mirror TV's "disgraceful political scandal" served as a direct contradiction to those claims.
When President Tsai’s merits and faults are evaluated in the future, the Mirror TV case will be regarded as an enduring stain that cannot be erased, and the NCC's handling and decision-making in this matter will be considered a significant historical mistake.