Media Assoc. fights GNBA’s attempt to collect outstanding fees

Sep 12, 2017 News

The Guyana Media Association (GMA) yesterday expressed dissatisfaction at the fact that the Guyana National Broadcasting Authority (GNBA) is looking to collect outstanding fees owed by local broadcasters.
Prime Minister, Moses Nagamootoo, had said that over $125M was owed to the GNBA by broadcasters who neglected to pay fees over the years.
Over the weekend, Nagamootoo’s office sent out a missive stating that GNBA Chairman, Leslie Sobers has written him. The missive also served to inform that Sobers indicated a willingness by most broadcasters to clear their debt. In fact, it was said that some broadcasters have already begun to clear their debts.
Yesterday, GMA said, “It is this Association’s understanding that the Authority is making the demand for these back payments (from 2014) on the basis of fees set under a court-overturned regulation which was instituted by the past administration. The fees set were successfully overturned by a court decision handed down by the then Chief Justice Ian Chang on May 9, 2014 and an absolute order was made on that date. “
GMA said that the decision follows an action by four existing broadcasters to challenge the imposition of $2.5 million in fees which represented a 1000% increase and would allow for financial ruin.
“Further, it was considered in breach of article 146 of the Constitution which guaranteed their right to freedom of expression. The Broadcasting Act, as noted in the decision, allows for a fee ‘which shall be a sum equivalent to such percentage of the gross revenue of the licensee as the Minister may by regulations prescribe.’
This does not allow for the imposition of a fee to be prescribed by the Minister under an option where if the percentage of the gross is less than $2.5 million, the Authority will ask for the greater sum of $2.5 million, as being demanded.”
GMA said that in his decision on May 9, 2014, the former Chief Justice examined the sections in the Broadcasting Act distinguishing between a grant fee for a new licence and an annual fee. The Chief Justice in his decision stated the Authority’s reliance on regulations which were published on November 29, 2013 in the Official Gazette.
The Association said that “this sets out the demand of $2.5 if it is greater than a gross percentage. Chief Justice Chang went on to rule that while the relevant section empowers the Minister to make regulations on grant fees, such a fee ‘would, of necessity, apply only to first time broadcasters and not to existing broadcasters.”
Further, GMA noted that the former Chief Justice, in granting the order in favour of the existing broadcasters, stated: It goes without saying that an annual fee based on a percentage of gross revenue of the previous year, cannot apply to a first-time broadcaster and can apply only to existing broadcasters.

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