EMBATTLED TV RAISING MONEY TO STAY ON AIR

Radio Liberty
March 19 2008
Czech Republic

A rare Armenian TV station at loggerheads with the government pleaded
for financial support from viewers and sympathizers on Wednesday as
it scrambled to pay a hefty fine imposed by tax authorities.

The Gyumri-based GALA has been facing uncertain future ever since
it broke ranks to air a September speech by former President
Levon Ter-Petrosian which contained harsh criticism of Armenia’s
government. The speech marked the start of Ter-Petrosian’s dramatic
political comeback.

Tax officials raided the offices of the small station and inspected
its books in late October. They claimed to have found more than 25
million drams ($81,000) in unpaid taxes, asking a local court to
force GALA’s parent company, Chap, to pay the sum.

The company denied the fraud allegations and said they were
fabricated in retaliation for its decision to provide airtime to
Ter-Petrosian. Local and Yerevan-based civic group also denounced the
case as politically motivated, rallying hundreds of Gyumri residents
in support of the embattled broadcaster in December.

However, the Gyumri division of Armenia’s Administrative Court ruled
on Wednesday that GALA did evade taxes and must pay the fine.

The cash-strapped channel clearly anticipated such a decision, having
decided on Monday to try to raise the required sum from the public
and hold a telethon for that purpose. The televised fund-raiser began
several hours before the announcement of the court ruling and appears
to have attracted strong interest from Gyumri residents. Hundreds of
them visited GALA’s offices and donated cash throughout the day.

GALA’s owner and chief executive, Vahan Khachatrian, told RFE/RL that
he has also received donations from Armenians living in other parts
of the country as well as abroad. The TV station raised a total of
6 million drams, or roughly one quarter of the required sum, as of
6 p.m. local time.

"I personally was against such fund-raising," said Khachatrian. "But
given the fact that GALA’s problem has long ceased to be my problem
and is now the public’s, I bowed to pressure from the public, my staff,
residents of Gyumri, Yerevan and entire Armenia."

Khachatrian claimed that the authorities hope that the financial
penalty will force GALA into bankruptcy. "We’ve told them right from
the beginning that this is not going to work and that they should
think of other ways of taking GALA off the air," he said.

Virtually all other Armenian TV stations, including the Yerevan-based
national networks, are controlled by or loyal to the government. The
only major private network that regularly aired criticism of the
government was controversially forced off the air in 2002.

From: Emil Lazarian | Ararat NewsPress