AFTER 12 hearings, the House Committee on Legislative Franchises on Friday rejected the franchise application of the ABS-CBN Corporation.
This, was after the House Committee on Legislative Franchises adopted a resolution—based on the work of a hastily formed technical working group—denying the franchise application of ABS-CBN Corporation to construct, install, establish, operate, and maintain radio and broadcasting stations in the Philippines.
The resolution to deny the ABS-CBN franchise application was adopted with 70 committee members voting in favor of the resolution, 11 against, and with 1 abstention and 2 inhibitions.
Before approving the resolution, the committee adopted the recommendation of its technical working group’s resolution recommending the denial of the franchise.
However, authors of the measures granting the ABS-CBN franchise may still ask the committee to reconsider its decision or refile bills granting the network a fresh legislative franchise.
ABS-CBN went off the air last May 5 after the National Telecommunication Commission issued a cease and desist order (CDO) against the network following the expiration of its legislative franchise last May 4.
The giant network’s saga has raised concern here and abroad that the “politicalization” of the process of granting franchises, which the Constitution reposes in Congress, could stymie investor confidence in the Philippines.
‘Violations’
Citing several violations embodied in six segments of the TWG report, the House Committee on Legislative Franchises rejected the 25-year franchise application of the Lopez-led network, sparking protests that it was really a political decision arising from President Duterte’s publicly stated disdain for the media company.
The committee, however, said the network’s franchise application is not a press freedom issue.
“It is what it is—a denial of a privilege granted by the State because the applicant was seen as undeserving of the grant of a legislative franchise,” it said.
The 12 House hearings discussed: the citizenship of ABS-CBN chair emeritus Gabby Lopez; possible violation of the constitutional prohibition against ownership and management of mass media by foreigners; use of Philippine Depositary Receipts; questionable and unjust, if not immoral, tax avoidance schemes; ABS-CBN’s apparent use of a dummy; and ABS-CBN’s less than exemplary labor practices.
Speaker Alan Peter Cayetano described the committee’s work as fair, impartial, thorough.
“Because of the highly partisan nature of this issue, we accepted from the start that there would be those who will vehemently disagree with the committee’s decision, no matter what they resolve,” he said.
He asked “that the people read the findings carefully in order to appreciate the reasons for their decision. And for those who do not agree, at the least, understand why the decision had to be so.
Albay Rep. Edcel Lagman noted the lightning speed with which the TWG finished a comprehensive report in less than 24 hours.
“While reasonable dispatch in the accomplishment of the work of a TWG is laudable, inordinate alacrity is suspect like in the case of the TWG which recommended the denial of the application of ABS-CBN Corporation for a franchise renewal in less than 24 hours after it was formed and even though it had to review more than 100 hours of hearings, voluminous documents and records, as well as major contentious issues,” Lagman said.
“The pretense of the Speaker for a ‘conscience vote’ was unmasked by his own closing statement at the end of the hearings which was a virtual final summation for the ‘antis’ rooting for the denial of ABS-CBN’s franchise renewal,” he said.
Agusan del Norte Rep. Lawrence Fortun said the TWG findings are a complete departure from the official position and statements of the departments, agencies, offices, and independent organizations invited to the joint committee hearings.
“The TWG recommendation for a resolution denying the franchise is a departure from truth, justice, and reason,” he said.
“History will judge the House on this,” he added.
Network executives
In a statement, ABS-CBN President and Chief Executive Officer Carlo Katigbak said the ABS-CBN will remain committed to public service, and it hopes to find other ways to achieve its mission.
“We are deeply hurt that the Committee on Legislative Franchises has denied the franchise application of ABS-CBN. We believe that we have been rendering service that is meaningful and valuable to the Filipino public. Nevertheless, we would like to thank the Committee for allowing us a chance to air our side on all the issues raised against us,” he said.
“ABS-CBN would like to thank all the congressmen who stood by their bills to renew our franchise, or who spoke out on our behalf during the hearings. We are forever grateful. We also thank everyone who expressed their support and offered their prayers for us. We could not have gotten to this point without you,” said Katigbak.
It would keep GMA and TV5 to serve as the sole private commercial television networks of the country.
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