iTV staff at the station’s headquarters watch a broadcast of Deputy Prime Minister Pridiyathorn Devakula’s press conference over the future of iTV yesterday.

The PM's Office will today form a panel to supervise iTV Plc if its licence is revoked as a result of it being unable to pay fines and fees of Bt102.21 billion by the March 6 deadline.

Meanwhile, Deputy Prime Minister MR Pridiyathorn Devakula said the government would pursue the legal pressure on iTV for the payment of the Bt2.21 billion in concession fees and the Bt100 billion in fines for violations of its programming requirements.

He said even though its concession would be revoked, iTV remained a company and was obligated to meet its financial responsibilities.

"The licence revocation will take effect immediately on March 7 and the committee will be in place to ensure a smooth transition and take care of technical, legal, financial and human resource aspects," PM's Office Minister Khunying Dhipava-dee Meksawan said.

The panel will comprise representatives from the government sector, including Dhipavadee, PM's Office Permanent Secretary Chula-yuth Hiranyawasit, and representatives from the Attorney General's Office, the Council of State, and the Finance Ministry.

Chulayuth said the PM's Office would approach certain individuals to sit on the panel. MCOT Plc could then be brought in to operate iTV on a contract, but this depended on the committee's decision. Eventual-ly, the programming ratio during prime time, of which 70 per cent should be devoted to news content, would be kept intact.

Ahead of the Cabinet's consideration of iTV's five options - that included revoking the concession - iTV stock was subject to heavy speculation. Opening at Bt0.86, it peaked at Bt1.16 before ending the morning session at Bt1.05 following rumours that iTV had found a buyer and that the government may waive the hefty penalty. Before trading was halted in the afternoon session, the stock gained 11.70 per cent from the previous closing with a transaction value of Bt101.64 million, being the tenth most active stock yesterday. The trading will be halted until iTV clarifies the issue to the Stock Exchange of Thailand.

After the one-hour secret meeting yesterday, the Cabinet approved the concession revocation but agreed that all 1,700 employees of iTV would not be laid off.

During March 1-6, the PM's Office will summon their representatives who will tell the employees to submit their resignations from iTV - and reapply for their jobs with the office. They will keep their present salaries. Dhipavadee said they deserved the privilege as iTV was not like other private companies as a state concessionaire.

According to Chulayuth, the PM's Office also planned to change the company's name and logo, which could be done without having to inform the Cabinet. The name and logo are copyrighted to iTV and the PM's Office had no right to use them further.

"These are the preparations the government will take if iTV eventually fails to pay the money on March 6. We cannot wait until the day comes and then act. This is a common procedure," Dhipavadee said.

iTV executive chairman Niwatthamrong Boonsongpaisan told a press conference yesterday: "We accept what is coming as iTV has no money to pay for the fees and the fines."

He said the company would co-operate with the government for a smooth transition. He estimated that if all employees remained employed by iTV on the day the concession was revoked, iTV would need to pay compensation of Bt200 million.

"We have done everything we can to lengthen the life span. But as the PM's Office insists on the Bt100 billion in fines, we see it as inappropriate, unjust and unfair," Niwatthamrong said.

"We can do nothing more, and paying Bt2 billion is of no use. iTV has made a plan to be implemented after the concession revocation but the plan will be revealed only after shareholders approve it at the March 20 meeting."

Pridiyathorn noted that the concession must be revoked as iTV could not pay the fees. "We have given them a chance. Now, if we do not revoke the concession, we'd be clowns."

While the Office would be the de-facto owner of the television channel, a professional team will be hired to run iTV.

"By doing that we will ensure we're following the rules. In 10 days, all this should be clear although now we don't know exactly, but it will be an efficient management and the government may need to allocate money from the central budget to finance the operations," Pridiyathorn said.

As for the approach by MCOT to run iTV, Jade Dhonavanik, dean of Siam University's Faculty of Law, said it was ridiculous given that MCOT is now a private company, which should not be allowed to run government properties.

"If another private operator is to be selected, the government should ensure it follows the rules. We are attacking the Thaksin government for not honouring the rules. This government should not follow in its footsteps."

Jade foresees that iTV could be forced to pay the unpaid concession fees and the fines. If it cannot, it could face bankruptcy and be liquidated.

iTV staff represented by Tuangporn Asvavilai, yesterday issued a statement to thank the Cabinet for solving the problem without causing havoc to employees. They vowed to continue their work in a competitive environment and urged the government to ensure no political intervention.