Public Broadcasting Services was receiving tens of thousands of euros in “indirect state-aid” in the form of advertising by direct order, industry observers told the Times of Malta.
In addition to the millions of euros in annual state funding under the legitimate public service obligation arrangement, the state broadcaster, which owns TVM, Radio Malta and an online web portal, gets additional funds via direct orders for non-commercial adverts and programme sponsorships.
Read: National broadcaster gets more state funding
The direct orders were being allocated either directly to the state company running the TV and radio stations or through contracts with individual broadcasters producing and airing programmes broadcast by PBS, the observers pointed out, wondering whether such advertising and sponsorship allocations were under EU state aid rules.
“The amount of funding being given to PBS through government coffers for these so-called public service obligation programmes is already questionable because many of the programmes so financed seem to fall outside the remit of the national broadcasting policy,” an observer familiar with both PBS and EU laws said.
The fact that the state broadcasting station was also receiving tens of thousands of euros in advertising and sponsorships from state entities without any form of competition and through direct orders was no-go and should be investigated by both the National Audit Office and the EU, he added.
Times of Malta is informed that a direct order amounting to over €73,000 was allotted by the Environment and Resources Authority for advertising in various programmes.
Other programmes, including those by Malta Today managing director, Saviour Balzan, also have similar arrangements, in addition to payments made by PBS for the production of the shows.
Transport Malta has allocated PBS two direct orders in connection with a Back to School campaign. It receives €17,700 to air traffic updates on another magazine programme called TVAM.
Industry observers said PBS should publicly clarify whether public funds are used to run its online news portal that competes directly with other privately-funded news portals. They noted that the national broadcasting policy does not make funding provisions for the news portal.
Figures obtained following a request under the Freedom of Information Act shows that public funding to sustain PBS operations increased from €3.2 million in 2014 to €4 million in 2017, up 25 per cent.