Two former senior executives of Korean telco KT have reportedly been indicted for selling an in-orbit bird to Asia Broadcast Satellite in 2010 without seeking government approval.
The US$20.85m sale of Koreasat-3 (now named ABS-7) should have been put…
Two former senior executives of Korean telco KT have reportedly been indicted for selling an in-orbit bird to Asia Broadcast Satellite in 2010 without seeking government approval.
The US$20.85m sale of Koreasat-3 (now named ABS-7) should have been put to the government because it was a strategic asset, according to a local report citing the Seoul Central District Prosecutors’ Office.
The two executives have not been accused of taking bribes, added the report.
KT was unable to comment before the press deadline, while ABS declined to comment on the matter.
Korea’s government reportedly ordered the telco to buy back the satellite late last year because it still operates in one of the country’s orbital slots, and the two companies have since been locked in arbitration proceedings over the price.
Koreasat-3, which was built by Lockheed Martin in participation with Korean manufacturers, was launched to 116E in September 1999 with a design life of 12 years. When ABS bought it in May 2010, the group estimated it had enough fuel for station-kept operations in geostationary orbit for six to seven years, and then a further five to six years of life in an inclined orbit.
The deal came just 10 months after private equity-backed ABS snapped up another ageing KT satellite called Koreasat-2 (renamed ABS-1A), which was later moved to 78E.
The telco has previously said it did not see the need to seek government approval for selling Koreasat-2 and Koreasat-3, which were later replaced by Koreasat-5 and Koreasat-6, because they had reached the end of their intended lifetimes.
In May this year, KT mandated Thales Alenia Space to build its next two spacecraft, Koreasat-7 and Koreasat-5A, under a turnkey contract. The manufacturer is also responsible for securing launches in 2016.
In addition, KT owns transponders on the ABS-2 satellite (also known as Koreasat-8), which was launched in February 2014 to 75E.
