ERC opens investigation into situation at Global Media Group

The ERC Regulatory Council, at an extraordinary meeting this Monday, approved the opening of an autonomous administrative process for the application of the Transparency Law and the opening of an informal investigation procedure on certain issues.

In a statement, the Social Communications Regulatory Authority (ERC) said that the extraordinary meeting, focusing on the analysis of the situation of Global Media Group (GMG), decided to “open an autonomous administrative process for the application of Article 14.” .Transparency Act, given that there is reasonable doubt as to whether qualified holdings under the terms of the Transparency Act (representing 5% or more of the shares) of the capital and/or voting rights of Global Media exist among the holders of the World Opportunity Fund (WOF) Group)”.

It also decided to “open an informal investigation process to clarify” certain issues, including “Checking whether there has been a change in the ownership of radio operators not sanctioned by the ERC with the inclusion of a WOF shareholder in the ownership structure of the radio operators.” Global Media Group”.

Another issue sought to be clarified is “the review of changes not approved by the ERC to the TSF Program Services Project” and “the review of the impact of the ongoing restructuring at the Global Media Group in relation to pluralism and the preservation of the editorial lineage of the various media groups,” it says ERC statement.

The TSF Editorial Board sent a letter to the ERC this Monday “condemning the dangers” of the administration’s interference in the editorial field and warning of “what it believes may happen” when new management is appointed.

On December 28, Global Media told workers it could not pay salaries for December, stressing that the financial situation was “extremely serious.”

The executive committee did not give a date for the payment of salaries for December, but stressed that it was making “every effort” to ensure that the delay was as short as possible.

Meanwhile, on Thursday the group paid food allowances and wages to workers in the Azores for last month. Global Media’s furlough program ends on January 10, the day the group’s workers also went on strike.

On December 6, in an internal statement, GMG’s executive committee, headed by José Paulo Fafe, announced that it would urgently negotiate layoffs with 150–200 workers and embark on a restructuring that it said was necessary to avoid “more than the foreseeable outcome ” bankruptcy of the group.”