ERC says it has done everything the law allows in the Global Media case

The social communications regulator said this Sunday that it had done what the law allows in the Global Media case, and that if information gaps persist in the open procedure, it could deprive the WOF fund of shareholder rights.

At the Congress of Journalists, during a debate on the topic of “Media Regulation”, member of the Regulatory Council of the Social Communications Regulatory Authority (ERC), Telmo Goncalves, said that the regulator had done everything it could “within the existing legal framework” and stated that, contrary to the opinion of some, “there is no” mechanism that would impose restrictions on business in the media for business entities such as investment funds.

The person in charge said that if there are new restrictions in the future, this debate should begin and the legislator will have to change the law.

Regarding the entry into Global Media of the investment fund World Opportunity Fund (WOF – based in the Bahamas, the so-called “tax haven”), Telmo Goncalves said that the ERC “monitored the transaction, although it was not yet completed” and he warned both parties that that they must provide clear information in accordance with the Transparency Regime, which in several cases did not fully occur, which is why the case was brought earlier this month.

On January 8, the ERC approved the opening of a mandatory reporting process for the entire distribution chain of Global Media’s qualified holdings, as there are reasonable doubts as to whether there are qualified holdings among the holders of the World Opportunity Fund.

If there is no clear and timely reporting, that shareholder could be “deprived of voting rights and ownership,” Telmo Goncalves said, considering this a “very heavy sanction.”

In addition to this process, the ERC has also opened a procedure to verify whether there has been a change in the scope of activities of radio operators not authorized by the ERC with the entry of the WOF shareholder into the ownership structure of the Global Media Group, as well as to verify whether a change has occurred, not approved by the ERC, in the service project TSF programs, and the impact of the Global Media restructuring on the pluralism and continuation of the editorial lines of the group’s various media outlets.

Last year, the investment fund World Opportunity Fund became the owner of 51% of the share capital of Páginas Civilizados, directly and indirectly controlling Global Media.

The ERC has since requested further information from the fund’s counsel to clarify the name and respective percentage of shareholders’ participation in the fund, given that the responses received did not elaborate (the fund said the shares were dispersed and identified by UCAP Bahamas Ltd and Frenchman Clément Ducasse as governing bodies).

In recent weeks, disagreements between Global Media shareholders have become public, and on January 19, shareholders Marco Galinha, Kevin Ho, José Pedro Soeiro and Mendes Ferreira announced that they planned to hold a general meeting to present a solution to the group.

These shareholders consider the “sole responsibility” of the World Opportunity Fund and its appointed executive management, led by José Paulo Fafe, to be the “unsustainable situation” currently experienced by Global Media workers and the group itself.

Workers in this group continue to receive wage arrears and there is a threat of collective dismissal of up to 200 people.

Last week, José Paulo Fafe said in a statement that the World Opportunity Fund would not transfer money to pay outstanding salaries until the ERC’s decision.

This Sunday marks the end of the V Congress of Journalists, which has been taking place since Thursday in Lisbon.