Alex Mahon also told a committee of MPs on Tuesday that the broadcaster’s investigation into culture secretary Nadine Dorries claims a 2010 Channel 4 reality show that featured second-hand paid actors found no evidence of tampering. The government is seeking to privatize Channel 4, arguing it will struggle to survive in a media landscape increasingly dominated by streaming giants such as Netflix, and is over-reliant on declining TV advertising to support its business model. The controversial policy is opposed by Channel 4’s management and board. They and the broadcaster’s independent auditors signed off on the annual report on May 23, but it has not yet been made public. Asked about the delay in publishing the report, Mahon said it had been suspended by officials at the Department for Digital, Culture, Media and Sport. “It’s fair to say that DCMS made some comments that they would have preferred to see in the report, particularly around our future financial viability,” Mahon said, answering questions from the DCMS select committee of MPs. “Really, the questions were about whether our wording was in line with government policy. This is the first time as far as I know [Channel 4’s] 40 years since there have been questions about the annual report”. The government is pushing ahead with plans to privatize Channel 4, which have been signed off by former prime minister Boris Johnson, although those plans could be scrapped by his successor. “Management and the board’s view is that Channel 4 is in a strong and sustainable position, it is [our] independent auditor’s opinion,” Mahon said. “There was some concern from DCMS, [which] would prefer to change some wording. [They] they have now agreed that it can be submitted to parliament as normal without any changes. The report that will arrive is the one the board has agreed to.” Channel 4 reported a 25% rise in total revenue to £1.2bn last year, an 18% increase on its pre-pandemic financial performance in 2019. The broadcaster, which is publicly owned but fully commercially funded with a not-for-profit commitment to delivering distinctive and challenging programmes, reported a record ‘surplus’ of £101m last year. Channel 4 has £273m in cash and £566m in net assets on its books, and aims to make 30% of its total revenue from digital operations by 2025. DCMS has been approached for comment. Mahon was also asked about an internal investigation launched by Channel 4 into the 2010 reality show Tower Block of Commons, in which Dorries was one of several MPs who went to live in deprived communities. In May, Dorris claimed before the same select committee that the reality show used paid actors to impersonate supposedly real people. Subscribe to the Business Today daily email or follow Guardian Business on Twitter @BusinessDesk “A charge of forgery was made against the actors in the program,” Mahon said. “We are just completing a proper investigation. From what I have seen, I see no evidence of this tampering.’ Mahon was asked if she had received any evidence from Dorries to support the allegation of tampering as part of the Channel 4 investigation. “From what I have seen to date, there is no evidence to show evidence of tampering,” she said. Asked if she had heard from DCMS about the inquiry, Mahon said she had heard from the culture secretary “directly” and expected his findings to be published alongside a DCMS statement later this week.
