The Philippine government on Monday urged the Supreme Court to cancel the franchises of the country's top broadcaster, ABS-CBN Corp., a move slammed by opposition lawmakers and activists as an attack designed to intimidate independent media.
The government said the 66-year-old entertainment and media conglomerate, which drew the ire of President Rodrigo Duterte during his 2016 election campaign, had violated ownership laws and was involved in "highly abusive practices".
Duterte's opponents said the complaint was timed to deny Congress the chance to renew the franchise of ABS-CBN, which employs nearly 7,000 people and engages hundreds of celebrities in radio, television and online content.
Solicitor-General and staunch Duterte loyalist Jose Calida said ABS-CBN had for too long shown greed and abuse of what was a privileged franchise.
"We want to put an end to what we discovered to be highly abusive practices of ABS-CBN benefiting a greedy few at the expense of millions of its loyal subscribers", Calida said in a statement.
ABS-CBN denied that and said the complaint appeared to be "an effort to shut down ABS-CBN to the serious prejudice of millions of Filipinos".
Duterte's has threatened for three years to torpedo the franchise renewal of ABS-CBN, which Duterte accuses of refusing to air his campaign commercials.
ABS-CBN has not directly responded to Duterte's claims, but its chairman, Eugenio Lopez said at the company stockholders' meeting in 2017 that it was "part and parcel of our work being a media institution".
Lopez also said the company deals with these problems privately.
The move comes at a time of concerns among some investors about regulatory unpredictability following a Duterte-ordered review of government contracts, which included big losses for two water firms whose billionaire owners Duterte has criticized.
ABS-CBN has lost 65% of its share value since Duterte assumed office in June 2016. It fell as much as 2.9% on Monday.
In 2018, the government revoked the license of Rappler, a news website known for its tough scrutiny of Duterte, who called it a "fake news outlet" sponsored by American spies. Rappler still operates pending appeal.
Calida said ABS-CBN started a pay-per-view channel without approval and charges fees not supposed to be levied. He said that like Rappler, ABS-CBN had breached foreign ownership restrictions behind an "elaborately crafted corporate veil".
The National Union of Journalists in the Philippines said the Supreme Court and Congress had the chance to prove they were independent and not beholden to Duterte.
"We must not allow the vindictiveness of one man, no matter how powerful, to run roughshod over the constitutionally guaranteed freedoms of the press and of expression, and the people's right to know," it said.
Congressman Edcel Lagman said the complaint was "maliciously timed" while representative Rufus Rodriguez called it an encroachment on Congress's turf.
Presidential spokesman Savlador Panelo said Duterte personally had nothing to do with the complaint, and in criticizing ABS-CBN, he was exercising his right to free speech.
https://www.voanews.com/east-asia-pacific/philippines-seeks-scrapping-abusive-broadcasters-franchise
Monday, February 10, 2020
Journalists denounce move to void ABS-CBN franchise
Several journalists denounced Monday a legal move to shut down ABS-CBN Corp by invalidating its franchise, even as they hailed the media conglomerate's role in nation-building.
Online news website Rappler, the Foreign Correspondents Association of the Philippines (FOCAP), and the National Union of Journalists in the Philippines backed ABS-CBN as Solicitor General Jose Calida sought to void the company's franchise via a "quo warranto" petition.
Rappler, in its statement, alleged that President Rodrigo Duterte's administration is "resorting to legal gymnastics to push their own agenda of silencing critical media."
"We at Rappler deplore the latest attempt by the Duterte administration to use the levers of state power to bring down a media company and silence Filipino journalists," it said.
"We stand with our colleagues at ABS-CBN and share the hope that they will weather this and come out even stronger," it added.
Both ABS-CBN and Rappler have been the subject of President Rodrigo Duterte's tirades.
In seeking to invalidate ABS-CBN's franchise, the government's top lawyer accused the company of "highly abusive practices."
ABS-CBN, however, insists it is compliant with all the laws governing its franchise and has secured necessary permits for its business operations.
"We reiterate that everything we do is in accordance with the law. We did not violate the law. This case appears to be an attempt to deprive Filipinos of the services of ABS-CBN," the company said.
Like Rappler, ABS-CBN allegedly violated the Filipino ownership restriction when it issued Philippine Depositary Receipts to foreigners, the Calida complaint said. A depositary receipt gives its holder some benefits without giving stockholder status.
"These practices have gone unnoticed or were disregarded for years," the complaint alleges.
FOCAP, meanwhile, said moves to shut ABS-CBN down threaten a pillar of the country's media industry, describing it a "cornerstone of Philippine democracy and the free press."
"Our ABS-CBN colleagues have been on the frontlines of every major breaking news in the country. They have chronicled history, and continue to hold power to account," FOCAP said.
"We stand with ABS-CBN. We stand with press freedom."
The NUJP criticized Calida for confronting ABS-CBN reporter Mike Navallo during the filing of the quo warranto petition.
"Calida's boorishness is the classic example of a government factotum who mistakes his position of authority as a license to throw his weight around. It is behavior that, of course, echoes his principal," the organization said.
ABS-CBN has repeatedly been hit by Duterte for allegedly not airing a paid campaign ad before the 2016 presidential elections.
In December, Duterte urged the owners of ABS-CBN to just sell the company, saying he would "see to it that you're out."
Salvador Panelo, the spokesman of Duterte, reiterated Monday that developments pertaining to the broadcast franchise of ABS-CBN have nothing to do with the issue of freedom of the press.
He also claimed that Duterte is not involved in Calida's complaint.
https://news.abs-cbn.com/news/02/10/20/journalists-denounce-move-to-void-abs-cbn-franchise
Online news website Rappler, the Foreign Correspondents Association of the Philippines (FOCAP), and the National Union of Journalists in the Philippines backed ABS-CBN as Solicitor General Jose Calida sought to void the company's franchise via a "quo warranto" petition.
Rappler, in its statement, alleged that President Rodrigo Duterte's administration is "resorting to legal gymnastics to push their own agenda of silencing critical media."
"We at Rappler deplore the latest attempt by the Duterte administration to use the levers of state power to bring down a media company and silence Filipino journalists," it said.
"We stand with our colleagues at ABS-CBN and share the hope that they will weather this and come out even stronger," it added.
Both ABS-CBN and Rappler have been the subject of President Rodrigo Duterte's tirades.
In seeking to invalidate ABS-CBN's franchise, the government's top lawyer accused the company of "highly abusive practices."
ABS-CBN, however, insists it is compliant with all the laws governing its franchise and has secured necessary permits for its business operations.
"We reiterate that everything we do is in accordance with the law. We did not violate the law. This case appears to be an attempt to deprive Filipinos of the services of ABS-CBN," the company said.
Like Rappler, ABS-CBN allegedly violated the Filipino ownership restriction when it issued Philippine Depositary Receipts to foreigners, the Calida complaint said. A depositary receipt gives its holder some benefits without giving stockholder status.
"These practices have gone unnoticed or were disregarded for years," the complaint alleges.
FOCAP, meanwhile, said moves to shut ABS-CBN down threaten a pillar of the country's media industry, describing it a "cornerstone of Philippine democracy and the free press."
"Our ABS-CBN colleagues have been on the frontlines of every major breaking news in the country. They have chronicled history, and continue to hold power to account," FOCAP said.
"We stand with ABS-CBN. We stand with press freedom."
The NUJP criticized Calida for confronting ABS-CBN reporter Mike Navallo during the filing of the quo warranto petition.
"Calida's boorishness is the classic example of a government factotum who mistakes his position of authority as a license to throw his weight around. It is behavior that, of course, echoes his principal," the organization said.
ABS-CBN has repeatedly been hit by Duterte for allegedly not airing a paid campaign ad before the 2016 presidential elections.
In December, Duterte urged the owners of ABS-CBN to just sell the company, saying he would "see to it that you're out."
Salvador Panelo, the spokesman of Duterte, reiterated Monday that developments pertaining to the broadcast franchise of ABS-CBN have nothing to do with the issue of freedom of the press.
He also claimed that Duterte is not involved in Calida's complaint.
https://news.abs-cbn.com/news/02/10/20/journalists-denounce-move-to-void-abs-cbn-franchise
Let Congress mandate on ABS-CBN franchise work: solon
A lawmaker at the House of Representatives on Monday said Congress has the mandate to act on the franchise renewal of broadcast giant ABS-CBN.
Laguna Representative Sol Aragones said that while she respects the decision of the Office of the Solicitor General (OSG) to file a quo warranto petition asking the Supreme Court to revoke the legislative franchise of ABS-CBN, the chamber is “prepared to tackle the issues raised by the OSG as part of our mandate to study and evaluate all matters involving the renewal of legislative franchises".
"Handa po kami gawin ang trabaho namin dito sa Kongreso. Sana po bigyan kami ng pagkakataon himayin at busisiin itong pag-renew ng franchise ng ABS-CBN (We are ready to do our mandate here in Congress. We hope that we are given a chance to thoroughly examine the renewal of ABS-CBN's franchise),” Aragones said, noting that several bills regarding the matter are pending before the House Committee on Legislative Franchises.
Aragones, a former ABS-CBN reporter, said that it is important to take into consideration the more than 11,000 employees of the network and their families.
Cagayan de Oro Rep. Rufus Rodriguez, one of the authors of pending bills seeking to renew ABS-CBN’s franchise for another 25 years, said the quo warranto petition is an “unconstitutional encroachment” of the exclusive power of Congress to grant a franchise.
Rodriguez also argued that the petition violates the separation of powers among the three branches of government.
Solicitor General Jose Calida said that ABS-CBN had been hiding behind an "elaborately crafted corporate veil", and alleged that it was allowing foreign investors to take part in the ownership of a Philippine mass media entity by issuing Philippine Deposit Receipts (PDRs) through ABS-CBN Holdings Corp., a violation of the 1987 Constitution.
Under the 1987 Constitution, mass media ownership is limited to Filipinos.
"This simply means that mass media companies operating in the Philippines must be 100 percent Filipino owned because they play an integral role in the nation's economic, political, and socio-political landscape," Calida said.
Calida added that the broadcasting firm "abused" the privilege granted by the State when it launched and operated a pay-per-view channel in ABS-CBN TV Plus, the KBO Channel, without prior approval or permit from the National Telecommunications Commission (NTC).
"While it is true that broadcasting is a business, the welfare of the people must not be sacrificed in the pursuit of profit," Calida said. "We want to put an end to what we discovered to be highly abusive practices of ABS-CBN benefitting a greedy few at the expense of millions of its loyal subscribers. These practices have gone unnoticed or were disregarded for years."
https://www.pna.gov.ph/articles/1093469
ABS-CBN denies franchise violations, says quo warranto case ‘without merit’
Media giant ABS-CBN on Monday denied allegations of violations in its legislative franchise, saying the quo warranto petition filed by Office of the Solicitor General only point to an effort to shut down the network.
A statement released by the broadcast giant claimed Solicitor General Jose Calida‘s petition before the Supreme Court to forfeit its franchise of ABS-CBN lacked merit.
“The Office of the Solicitor General’s filing of a quo warranto case against ABS-CBN on alleged violations of its franchise appears to be an effort to shut down ABS-CBN to the serious prejudice of millions of Filipinos who rely on the network for news, entertainment and public service,” the statement read.
“These allegations cited by the Office of the Solicitor General in his press statement are without merit. ABS-CBN complies with all pertinent laws governing its franchise and has secured all necessary government and regulatory approvals for its business operations,” it added.
The network also noted that the Senate, the House of Representatives, and the Executive Branch have assured the public that its franchise will be allowed to undergo the proper renewal process in a “fair manner.”
“To that end, the filing of the quo warranto case is ill-timed given that Congress has already resumed its session,” ABS-CBN said.
According to the network, all its broadcast offerings, including the Kapamilya Box Office (KBO) have received the necessary government and regulatory approvals, and are not prohibited by its franchise.
It likewise said that Philippine Deposit Receipts (PDRs) of the ABS-CBN Holdings were evaluated and approved by the Security Exchange Commission and the Philippine Stock Exchange prior to its public offering. ABS-CBN explained these are the same instruments used by other broadcast companies to raise capital for the improvement of its services.
The ownership of ABS-CBN in ABS-CBN Convergence was also undertaken under the same law and structures that have been utilized by other telecommunication companies. These are transfers that are approved under the Public Telecommunications Policy Act and are fully compliant with the law, according to the network.
“We reiterate that everything we do is in accordance with the law. We did not violate the law. This case appears to be an attempt to deprive Filipinos of the services of ABS-CBN,” it said.
The broadcast giant also noted that KBO remains one of the cheapest forms of entertainment that it can provide to the public.
“The capital we have raised from the PDRs has enabled us to provide services to nearly 90 percent of the Philippines and to our OFW’s all over the world. Our work with ABS-CBN Convergence supports the government policy of finding ways to bring down the cost of internet access,” it said.
“We remain committed to our mission to serve the Filipino people especially at this time when millions of Filipinos rely on our services in delivering information such as the 2019 NCoV ARD, the developments in the Middle East, and updates on Taal Volcano situation as they relate to our countrymen,” the network added.
In filing the quo warranto petition, Calida sought to void the franchise in a bid to stop the supposed “abusive practices” of ABS-CBN.
“We want to put an end to what we discovered to be highly abusive practices of ABS-CBN benefiting a greedy few at the expense of millions of its loyal subscribers. These practices have gone unnoticed or were disregarded for years,” Calida said.
https://newsinfo.inquirer.net/1226711/fwd-abs-cbn-solgens-claims-on-quo-warranto-case-without-merit
A statement released by the broadcast giant claimed Solicitor General Jose Calida‘s petition before the Supreme Court to forfeit its franchise of ABS-CBN lacked merit.
“The Office of the Solicitor General’s filing of a quo warranto case against ABS-CBN on alleged violations of its franchise appears to be an effort to shut down ABS-CBN to the serious prejudice of millions of Filipinos who rely on the network for news, entertainment and public service,” the statement read.
“These allegations cited by the Office of the Solicitor General in his press statement are without merit. ABS-CBN complies with all pertinent laws governing its franchise and has secured all necessary government and regulatory approvals for its business operations,” it added.
The network also noted that the Senate, the House of Representatives, and the Executive Branch have assured the public that its franchise will be allowed to undergo the proper renewal process in a “fair manner.”
“To that end, the filing of the quo warranto case is ill-timed given that Congress has already resumed its session,” ABS-CBN said.
According to the network, all its broadcast offerings, including the Kapamilya Box Office (KBO) have received the necessary government and regulatory approvals, and are not prohibited by its franchise.
It likewise said that Philippine Deposit Receipts (PDRs) of the ABS-CBN Holdings were evaluated and approved by the Security Exchange Commission and the Philippine Stock Exchange prior to its public offering. ABS-CBN explained these are the same instruments used by other broadcast companies to raise capital for the improvement of its services.
The ownership of ABS-CBN in ABS-CBN Convergence was also undertaken under the same law and structures that have been utilized by other telecommunication companies. These are transfers that are approved under the Public Telecommunications Policy Act and are fully compliant with the law, according to the network.
“We reiterate that everything we do is in accordance with the law. We did not violate the law. This case appears to be an attempt to deprive Filipinos of the services of ABS-CBN,” it said.
The broadcast giant also noted that KBO remains one of the cheapest forms of entertainment that it can provide to the public.
“The capital we have raised from the PDRs has enabled us to provide services to nearly 90 percent of the Philippines and to our OFW’s all over the world. Our work with ABS-CBN Convergence supports the government policy of finding ways to bring down the cost of internet access,” it said.
“We remain committed to our mission to serve the Filipino people especially at this time when millions of Filipinos rely on our services in delivering information such as the 2019 NCoV ARD, the developments in the Middle East, and updates on Taal Volcano situation as they relate to our countrymen,” the network added.
In filing the quo warranto petition, Calida sought to void the franchise in a bid to stop the supposed “abusive practices” of ABS-CBN.
“We want to put an end to what we discovered to be highly abusive practices of ABS-CBN benefiting a greedy few at the expense of millions of its loyal subscribers. These practices have gone unnoticed or were disregarded for years,” Calida said.
https://newsinfo.inquirer.net/1226711/fwd-abs-cbn-solgens-claims-on-quo-warranto-case-without-merit
Labor group favors ABS-CBN franchise renewal
By Leslie Ann Aquino
Labor group Defend Jobs Philippines said Supreme Court justices must vote in favor of the thousands of ABS-CBN workers and for press freedom by immediately denying the quo warranto petition filed by Solicitor General Jose Calida against the network.
“Once and for all, the Supreme Court must uphold its mandate to use its judicial powers to make the law of the land serve the best interests of the Filipino people and not of those in the sit (sic) of political power,” said Thadeus Ifurung, Defend Job Philippines spokesperson.
The group added that SC justices should vote on the SolGen’s petition according “to their conscience and not through partisan political dictates.”
The labor group said the move of the government was “not just an act to curtail press freedom but an attack against the livelihood of more than 11,000 workers of the Kapamilya network.”
It then reiterated their call for Congress to do their job and start discussing the bills that will grant new legislative franchise to ABS-CBN despite Calida’s petition.
Ifurung said, “Being the leading media network in the country employing more than 10,000 workers, the non-renewal and shutdown of ABS-CBN will mean massive termination in the Philippine labor sector nationwide.”
He added, “While we acknowledge different labor issues of Kapamilya workers, it doesn’t equate to the non-renewal of ABS-CBN franchise as thousands of families still rely their livelihood and source of income to (sic) the TV and radio network firm.”
Defend Job Philippines also urged President Duterte to resolve its rift with the ABS-CBN management in proper venues and must stop using the legislative franchise and the job security issue of ABS-CBN workers as hostage to his plans of going after the TV network.
Since 2018, President Duterte has been vocal on the supposed failure of ABS-CBN to air his presidential campaign advertisements in 2016, which was duly paid for.
According to Defend Jobs Philippines, being the country’s largest TV network, ABS CBN employs 6,730 regular employees, 900 non-regular workers and more than 3,325 talents since the end of 2018 citing the company’s report to the Securities and Exchange Commission and Philippine Stocks Exchange.
https://news.mb.com.ph/2020/02/10/labor-group-favors-abs-cbn-franchise-renewal/
Labor group Defend Jobs Philippines said Supreme Court justices must vote in favor of the thousands of ABS-CBN workers and for press freedom by immediately denying the quo warranto petition filed by Solicitor General Jose Calida against the network.
“Once and for all, the Supreme Court must uphold its mandate to use its judicial powers to make the law of the land serve the best interests of the Filipino people and not of those in the sit (sic) of political power,” said Thadeus Ifurung, Defend Job Philippines spokesperson.
The group added that SC justices should vote on the SolGen’s petition according “to their conscience and not through partisan political dictates.”
The labor group said the move of the government was “not just an act to curtail press freedom but an attack against the livelihood of more than 11,000 workers of the Kapamilya network.”
It then reiterated their call for Congress to do their job and start discussing the bills that will grant new legislative franchise to ABS-CBN despite Calida’s petition.
Ifurung said, “Being the leading media network in the country employing more than 10,000 workers, the non-renewal and shutdown of ABS-CBN will mean massive termination in the Philippine labor sector nationwide.”
He added, “While we acknowledge different labor issues of Kapamilya workers, it doesn’t equate to the non-renewal of ABS-CBN franchise as thousands of families still rely their livelihood and source of income to (sic) the TV and radio network firm.”
Defend Job Philippines also urged President Duterte to resolve its rift with the ABS-CBN management in proper venues and must stop using the legislative franchise and the job security issue of ABS-CBN workers as hostage to his plans of going after the TV network.
Since 2018, President Duterte has been vocal on the supposed failure of ABS-CBN to air his presidential campaign advertisements in 2016, which was duly paid for.
According to Defend Jobs Philippines, being the country’s largest TV network, ABS CBN employs 6,730 regular employees, 900 non-regular workers and more than 3,325 talents since the end of 2018 citing the company’s report to the Securities and Exchange Commission and Philippine Stocks Exchange.
https://news.mb.com.ph/2020/02/10/labor-group-favors-abs-cbn-franchise-renewal/
SolGen files quo warranto petition vs. ABS CBN
By Rey Panaligan
Government lawyers on Monday morning, February 10, asked the Supreme Court (SC) to forfeit the legislative franchises of ABS-CBN Corporation and its subsidiary, ABS-CBN Convergence, Inc.
The plea was contained in a quo warranto petition filed by the Office of the Solicitor General (OSG) led by Solicitor General Jose C. Calida.
A quo warranto “is a special civil action brought in the name of the Philippines against a person who usurps, intrudes into, or unlawfully holds or exercises a public office, position or franchise; or against a public officer who does or suffers an act which, by provision of law, constitutes a ground for the forfeiture of his office; or an association which acts as a corporation within the Philippines without being legally incorporated or without lawful authority to act.”
Published reports stated that ABS-CBN’s franchise will expire next month. Several bills have been filed in Congress for the renewal of the franchise.
A copy of the OSG’s petition was not immediately available.
The full text of the press statement issued by the OSG:
“We want to put an end to what we discovered to be highly abusive practices of ABS-CBN benefitting a greedy few at the expense of millions of its loyal subscribers. These practices have gone unnoticed or were disregarded for years.
“The petition will show that ABS-CBN has been broadcasting for a fee, which is beyond the scope of its legislative franchise.
“Further, the media giant, hiding behind an ‘elaborately crafted corporate veil,’ has been allowing foreign investors to take part in the ownership of Philippine mass media entity, in gross violation of the foreign interest restriction of mass media provided under Section 11, Article XVI of the Constitution.
“ABS-CBN abused the privilege granted by the State when it launched and operated a pay-per-view channel in ABS-CBN TV Plus, the KBO Channel, without prior approval or permit from the National Telecommunications Commission. While it is true that broadcasting is a business, the welfare of the people must not be sacrificed in the pursuit of profit.
“Further, like Rappler, ABS-CBN had issued Philippine Deposit Receipts (PDRs) through ABS-CBN Holdings Corporation to foreigners, in violation of the foreign ownership restriction on mass media in the Constitution.
“Section 11, Article XVI of the Constitution provides that ‘the ownership and management of mass media shall be limited to citizens of the Philippines, or to corporations, cooperatives or associations, wholly-owned and managed by such citizens.’
“This simply means that mass media companies operating in the Philippines must be 100 percent Filipino owned because they play an integral role in a nation’s economic, political, and socio-cultural landscape.
“On the other hand, ABS-CBN Convergence, Inc. (formerly Multi-Media Telepony, Inc.) resorted to an ingenious corporate layering scheme in order to transfer its franchise without the necessary Congressional approval. It also failed to publicly offer any of its outstanding capital stock to any securities exchange within the Philippines within five years from the start of its operations, which is an indispensable condition in its franchise.
“The legislative franchises of ABS-CBN Corporation and its subsidiary, ABS-CBN Convergence, Inc., must be revoked. A franchise is a special privilege granted by the State, and should be restricted only to entities which faithfully adhere to our Constitution and laws.”
The official reaction or position of ABS-CBN Corporation on the quo warranto petition will be known once it is required by the SC to file its comment on answer.
https://news.mb.com.ph/2020/02/10/solgen-files-quo-warranto-petition-vs-abs-cbn/
Government lawyers on Monday morning, February 10, asked the Supreme Court (SC) to forfeit the legislative franchises of ABS-CBN Corporation and its subsidiary, ABS-CBN Convergence, Inc.
The plea was contained in a quo warranto petition filed by the Office of the Solicitor General (OSG) led by Solicitor General Jose C. Calida.
A quo warranto “is a special civil action brought in the name of the Philippines against a person who usurps, intrudes into, or unlawfully holds or exercises a public office, position or franchise; or against a public officer who does or suffers an act which, by provision of law, constitutes a ground for the forfeiture of his office; or an association which acts as a corporation within the Philippines without being legally incorporated or without lawful authority to act.”
Published reports stated that ABS-CBN’s franchise will expire next month. Several bills have been filed in Congress for the renewal of the franchise.
A copy of the OSG’s petition was not immediately available.
The full text of the press statement issued by the OSG:
“We want to put an end to what we discovered to be highly abusive practices of ABS-CBN benefitting a greedy few at the expense of millions of its loyal subscribers. These practices have gone unnoticed or were disregarded for years.
“The petition will show that ABS-CBN has been broadcasting for a fee, which is beyond the scope of its legislative franchise.
“Further, the media giant, hiding behind an ‘elaborately crafted corporate veil,’ has been allowing foreign investors to take part in the ownership of Philippine mass media entity, in gross violation of the foreign interest restriction of mass media provided under Section 11, Article XVI of the Constitution.
“ABS-CBN abused the privilege granted by the State when it launched and operated a pay-per-view channel in ABS-CBN TV Plus, the KBO Channel, without prior approval or permit from the National Telecommunications Commission. While it is true that broadcasting is a business, the welfare of the people must not be sacrificed in the pursuit of profit.
“Further, like Rappler, ABS-CBN had issued Philippine Deposit Receipts (PDRs) through ABS-CBN Holdings Corporation to foreigners, in violation of the foreign ownership restriction on mass media in the Constitution.
“Section 11, Article XVI of the Constitution provides that ‘the ownership and management of mass media shall be limited to citizens of the Philippines, or to corporations, cooperatives or associations, wholly-owned and managed by such citizens.’
“This simply means that mass media companies operating in the Philippines must be 100 percent Filipino owned because they play an integral role in a nation’s economic, political, and socio-cultural landscape.
“On the other hand, ABS-CBN Convergence, Inc. (formerly Multi-Media Telepony, Inc.) resorted to an ingenious corporate layering scheme in order to transfer its franchise without the necessary Congressional approval. It also failed to publicly offer any of its outstanding capital stock to any securities exchange within the Philippines within five years from the start of its operations, which is an indispensable condition in its franchise.
“The legislative franchises of ABS-CBN Corporation and its subsidiary, ABS-CBN Convergence, Inc., must be revoked. A franchise is a special privilege granted by the State, and should be restricted only to entities which faithfully adhere to our Constitution and laws.”
The official reaction or position of ABS-CBN Corporation on the quo warranto petition will be known once it is required by the SC to file its comment on answer.
https://news.mb.com.ph/2020/02/10/solgen-files-quo-warranto-petition-vs-abs-cbn/
ABS-CBN shares bleed as government moves to revoke network's franchise
Shares in ABS-CBN Corp. took a beating Monday morning after the Office of the Solicitor General asked the Supreme Court to revoke the media giant’s legislative franchise.
As of 10:18 a.m., ABS-CBN shares fell 2% to P16.66 each. The main index was also in the red.
ABS-CBN reported that Solicitor General Jose Calida on Monday filed a quo warranto petition against ABS-CBN Corp. and ABS-CBN Convergence Inc., a subsidiary of the network giant.
In the plea, Calida accused the broadcasting giant of “unlawfully exercising their legislative franchises”. He maintained that “there is no politics” involved in his moves.
“We want to put an end to what we discovered to be highly abusive practices of ABS-CBN benefitting a greedy few at the expense of millions of its loyal subscribers. These practices have gone unnoticed or were disregarded for years,” Calida said in a statement.
Rule 66 of the Rules of Court provides that the solicitor general can file a quo warranto (Latin for "by what authority") against “a person who usurps, intrudes into, or unlawfully holds or exercises a public office, position or franchise.”
The petition may also be filed against “an association which acts as a corporation within the Philippines without being legally incorporated or without lawful authority so to act.”
President Rodrigo Duterte has repeatedly threatened to block the franchise extension of ABS-CBN, which he accused of bias and of not airing his paid political advertisement during the 2016 election campaign.
The media company is racing against time as its franchise will expire in March this year. A bill to extend its license for another 25 years is pending in Congress.
Analysts have warned that ABS-CBN’s franchise woes and Duterte’s recent attacks on big businesses can dampen investor confidence in the country.
The non-renewal of the franchise is also expected to severely affect the network’s business as traditional media revenues account for 70% of ABS-CBN’s revenues. — with a report from Kristine Joy Patag
https://www.philstar.com/business/2020/02/10/1991952/abs-cbn-shares-bleed-government-moves-revoke-networks-franchise
As of 10:18 a.m., ABS-CBN shares fell 2% to P16.66 each. The main index was also in the red.
ABS-CBN reported that Solicitor General Jose Calida on Monday filed a quo warranto petition against ABS-CBN Corp. and ABS-CBN Convergence Inc., a subsidiary of the network giant.
In the plea, Calida accused the broadcasting giant of “unlawfully exercising their legislative franchises”. He maintained that “there is no politics” involved in his moves.
“We want to put an end to what we discovered to be highly abusive practices of ABS-CBN benefitting a greedy few at the expense of millions of its loyal subscribers. These practices have gone unnoticed or were disregarded for years,” Calida said in a statement.
Rule 66 of the Rules of Court provides that the solicitor general can file a quo warranto (Latin for "by what authority") against “a person who usurps, intrudes into, or unlawfully holds or exercises a public office, position or franchise.”
The petition may also be filed against “an association which acts as a corporation within the Philippines without being legally incorporated or without lawful authority so to act.”
President Rodrigo Duterte has repeatedly threatened to block the franchise extension of ABS-CBN, which he accused of bias and of not airing his paid political advertisement during the 2016 election campaign.
The media company is racing against time as its franchise will expire in March this year. A bill to extend its license for another 25 years is pending in Congress.
Analysts have warned that ABS-CBN’s franchise woes and Duterte’s recent attacks on big businesses can dampen investor confidence in the country.
The non-renewal of the franchise is also expected to severely affect the network’s business as traditional media revenues account for 70% of ABS-CBN’s revenues. — with a report from Kristine Joy Patag
https://www.philstar.com/business/2020/02/10/1991952/abs-cbn-shares-bleed-government-moves-revoke-networks-franchise
Solgen Calida asks Supreme Court to revoke ABS-CBN franchise
(Update 3; 10:58 a.m.) — Solicitor General Jose Calida has asked the Supreme Court to revoke the legislative franchise of broadcast giant ABS-CBN, which has been at the receiving end of many of President Rodrigo Duterte’s tirades.
ABS-CBN reported that Calida on Monday filed a quo warranto petition against ABS-CBN Corportation and ABS-CBN Convergence Inc., a subsidiary of the network giant.
In the plea, Calida accused the broadcasting giant of “unlawfully exercising their legislative franchises under Republic Act No. 7966 and Republic Act No. 8332.”
RA 7966 pertains to the Act granting ABS-CBN Corporation franchise to operate while RA 8332 meanwhile is the Act Granting Multi-Media Telephony, Incorporated, a Franchise to Construct, Establish, Operate and Maintain Radio Paging System in the Philippines.
ABS-CBN Convergence, Inc. and is the network's communications arm.
Calida declined almost all questions from reporters after filing, but he said that “there is no politics” involved in the filing.
In a statement, Calida said: “We want to put an end to what we discovered to be highly abusive practices of ABS-CBN benefitting a greedy few at the expense of millions of its loyal subscribers. These practices have gone unnoticed or were disregarded for years.”
Rule 66 of the Rules of Court provides that the solicitor general can file a quo warranto (Latin for "by what authority") against “a person who usurps, intrudes into, or unlawfully holds or exercises a public office, position or franchise.”
The petition may also be filed against “an association which acts as a corporation within the Philippines without being legally incorporated or without lawful authority so to act.”
ABS-CBN’s legislative franchise will expire by the end of March but bills calling for its renewal remain pending before Congress.
House members: Encroachment on congressional power
Rep. Rufus Rodriguez (Cagayan de Oro), author of one of nearly a dozen bills to renew ABS-CBN's franchise, said in a phone patch interview on the ABS-CBN News Channel, that the move "is an encroachment on the right of Congress to grant and revoke franchises."
Rep. Johnny Pimentel (Surigao del Sur), deputy House speaker, said in a separate phone patch interview that the move is "questionable and alarming."
"It is only Congress that has the power to grant or cancel franchises," he said, adding "we have not even started hearings on the renewal."
Nonoy Espina, chairperson of the National Union of Journalists of the Philippines said the move was "more or less expected" although the timing of the filing—with the network's franchise expiring in less than two months—is "weird."
"If they can't stop Congress from acting on the bills, then the quo warranto petition is the way to go, at least to stop it," he said.
He said that said that aside from the business implications for ABS-CBN as a network, thousands of media workers could lose their jobs, adding the petition is "really a direct attack on the freedom of the press and freedom of expression."
He added: "The ball is in Congress, especially in the committee of congressional franchises. They can start the ball rolling, it's not too late."
NUJP launched last month a signature campaign to urge lawmakers to act on the renewal of ABS-CBN's franchise.
"[T]o not act on the bill is to prove that they are nothing but lapdogs of this administration," Espina said.
ABS-CBN has yet to issue an official statement on the latest development in its bid to extend its franchise.
Solgen alleges foreign ownership in ABS-CBN
A copy of the full petition has yet to be made public, but in the statement provided to media, the OSG accused ABS-CBN of allowing foreigners to invest in its ownership.
The 1987 Constitution holds that mass media ownership and management should be limited to Filipino citizens.
"Like Rappler, ABS-CBN issued Philippine Deposit Receipts through ABS-CBN Holdings Corporation to foreigners, in violation of the foreign ownership restriction on mass media in the Constitution," the statement read.
PDRs are instruments that give foreign investors a passive economic interest in a Philippine company.
Rappler, another media entity that has earned the ire of the president, faced a closure order from the Securities and Exchange Commission due to PDRs.
The Court of Appeals sent the case back to the SEC after investor Omidyar Network later donated its PDRs to Rappler executives. The appeals court told the SEC to look into the legal effect of the donation,
'Moves without Congressional approval'
Calida also accused ABS-CBN of “abusing the privilege” given by the State when it launched pay-per-view channel in ABS-CBN TV Plus, KBO Channel without permit from the National Telecommunications Commission.
He also said that ABS-CBN Convergence “resorted to an ingenious corporate layering scheme in order to transfer its franchise without the necessary Congressional approval.”
The solicitor general said that the subsidiary did not publicly offer its outstanding capital stock to any securities exchange within five years since its operation started, “which is an indispensable condition in its franchise.”
In 2018, Calida filed a quo warranto petition against former Chief Justice Maria Lourdes Sereno that eventually led to her ouster.
Sereno, whom Duterte had branded as his enemy, was booted out of the SC after her colleagues voted 8-6 to grant Calida's quo warranto petition against her. They decided that she had never been appointed chief justice and that her appointment was invalid from the very beginning.
https://www.philstar.com/headlines/2020/02/10/1991949/solgen-calida-asks-supreme-court-revoke-abs-cbn-franchise
ABS-CBN reported that Calida on Monday filed a quo warranto petition against ABS-CBN Corportation and ABS-CBN Convergence Inc., a subsidiary of the network giant.
In the plea, Calida accused the broadcasting giant of “unlawfully exercising their legislative franchises under Republic Act No. 7966 and Republic Act No. 8332.”
RA 7966 pertains to the Act granting ABS-CBN Corporation franchise to operate while RA 8332 meanwhile is the Act Granting Multi-Media Telephony, Incorporated, a Franchise to Construct, Establish, Operate and Maintain Radio Paging System in the Philippines.
ABS-CBN Convergence, Inc. and is the network's communications arm.
Calida declined almost all questions from reporters after filing, but he said that “there is no politics” involved in the filing.
In a statement, Calida said: “We want to put an end to what we discovered to be highly abusive practices of ABS-CBN benefitting a greedy few at the expense of millions of its loyal subscribers. These practices have gone unnoticed or were disregarded for years.”
Rule 66 of the Rules of Court provides that the solicitor general can file a quo warranto (Latin for "by what authority") against “a person who usurps, intrudes into, or unlawfully holds or exercises a public office, position or franchise.”
The petition may also be filed against “an association which acts as a corporation within the Philippines without being legally incorporated or without lawful authority so to act.”
ABS-CBN’s legislative franchise will expire by the end of March but bills calling for its renewal remain pending before Congress.
House members: Encroachment on congressional power
Rep. Rufus Rodriguez (Cagayan de Oro), author of one of nearly a dozen bills to renew ABS-CBN's franchise, said in a phone patch interview on the ABS-CBN News Channel, that the move "is an encroachment on the right of Congress to grant and revoke franchises."
Rep. Johnny Pimentel (Surigao del Sur), deputy House speaker, said in a separate phone patch interview that the move is "questionable and alarming."
"It is only Congress that has the power to grant or cancel franchises," he said, adding "we have not even started hearings on the renewal."
Nonoy Espina, chairperson of the National Union of Journalists of the Philippines said the move was "more or less expected" although the timing of the filing—with the network's franchise expiring in less than two months—is "weird."
"If they can't stop Congress from acting on the bills, then the quo warranto petition is the way to go, at least to stop it," he said.
He said that said that aside from the business implications for ABS-CBN as a network, thousands of media workers could lose their jobs, adding the petition is "really a direct attack on the freedom of the press and freedom of expression."
He added: "The ball is in Congress, especially in the committee of congressional franchises. They can start the ball rolling, it's not too late."
NUJP launched last month a signature campaign to urge lawmakers to act on the renewal of ABS-CBN's franchise.
"[T]o not act on the bill is to prove that they are nothing but lapdogs of this administration," Espina said.
ABS-CBN has yet to issue an official statement on the latest development in its bid to extend its franchise.
Solgen alleges foreign ownership in ABS-CBN
A copy of the full petition has yet to be made public, but in the statement provided to media, the OSG accused ABS-CBN of allowing foreigners to invest in its ownership.
The 1987 Constitution holds that mass media ownership and management should be limited to Filipino citizens.
"Like Rappler, ABS-CBN issued Philippine Deposit Receipts through ABS-CBN Holdings Corporation to foreigners, in violation of the foreign ownership restriction on mass media in the Constitution," the statement read.
PDRs are instruments that give foreign investors a passive economic interest in a Philippine company.
Rappler, another media entity that has earned the ire of the president, faced a closure order from the Securities and Exchange Commission due to PDRs.
The Court of Appeals sent the case back to the SEC after investor Omidyar Network later donated its PDRs to Rappler executives. The appeals court told the SEC to look into the legal effect of the donation,
'Moves without Congressional approval'
Calida also accused ABS-CBN of “abusing the privilege” given by the State when it launched pay-per-view channel in ABS-CBN TV Plus, KBO Channel without permit from the National Telecommunications Commission.
He also said that ABS-CBN Convergence “resorted to an ingenious corporate layering scheme in order to transfer its franchise without the necessary Congressional approval.”
The solicitor general said that the subsidiary did not publicly offer its outstanding capital stock to any securities exchange within five years since its operation started, “which is an indispensable condition in its franchise.”
In 2018, Calida filed a quo warranto petition against former Chief Justice Maria Lourdes Sereno that eventually led to her ouster.
Sereno, whom Duterte had branded as his enemy, was booted out of the SC after her colleagues voted 8-6 to grant Calida's quo warranto petition against her. They decided that she had never been appointed chief justice and that her appointment was invalid from the very beginning.
https://www.philstar.com/headlines/2020/02/10/1991949/solgen-calida-asks-supreme-court-revoke-abs-cbn-franchise
Poe: Congress has authority over ABS-CBN legislative franchise
By Vanne Elaine Terrazola
Senator Grace Poe maintained that Congress still has the authority over the legislative franchise granted to broadcast company ABS-CBN despite the quo warranto petition filed by the government.
Solicitor-General Jose Calida on Monday asked the Supreme Court to cancel the congressional franchise of ABS-CBN and its subsidiary ABS-CBN Convergence Inc, for its “highly abusive practices” and alleged violation of the Constitution.
While pointing out that the quo warranto petition is a legal matter that should be resolved by the SC, Poe in her statement, said, “As the constitution mandates, the Senate’s jurisdiction over franchises remains despite the existence of the petition.”
The senator chairs the Senate Committee on Public Services which tackles franchises given to public utilities and media companies. She said she plans to discuss the franchise even with Calida’s petition.
“At any case, every franchise undergoes a public hearing and I intend to tackle these issues in a fair and a deliberative manner,” Poe said.
“I think this is not just an issue of franchise, but this is in a broader stroke, a concern for fair and sound business practice, press freedom, and jobs for all the employees of the television network,” she added.
Poe said she hopes that the High Court will decide on Calida’s petition “on the basis fairness and for the interest of the greatest number of people.”
Senate President Vicente Sotto III, on the other hand, was mum about Calida’s move as he believed that the ABS-CBN’s franchise would still be tackled by the Senate.
“Considering the possibility of the franchise reaching the Senate, I would rather reserve my opinion on the matter,” Sotto said in a text message sent to reporters.
When pressed on the possible effect of the quo warranto case on the franchise bills filed in Congress, he said “it’s prudent to not judge it” because “it might have an effect when we decide later should it reach us.”
The Senate will have to wait for the House of Representatives before it tackles any measures on the renewal of the ABS-CBN’s 25-year franchise, granted on March 30, 1995, and set to expire on March 30. The Lower Chamber has not taken up the matter yet.
The quo warranto case finally came after President Duterte’s repeated vow to block the renewal of ABS-CBN’s franchise, for its supposed failure to air his 2016 presidential campaign advertisement despite paying the network for it.
Presidential spokesman Salvador Panelo said the President had nothing to do with the quo warranto petition, saying instead that it is part of the Solicitor General’s job.
Calida filed the same petition in 2018 to remove from office former Chief Justice Maria Lourdes Sereno, who was critical of the Duterte administration.
https://news.mb.com.ph/2020/02/10/poe-congress-has-authority-over-abs-cbn-legislative-franchise/
Senator Grace Poe maintained that Congress still has the authority over the legislative franchise granted to broadcast company ABS-CBN despite the quo warranto petition filed by the government.
Solicitor-General Jose Calida on Monday asked the Supreme Court to cancel the congressional franchise of ABS-CBN and its subsidiary ABS-CBN Convergence Inc, for its “highly abusive practices” and alleged violation of the Constitution.
While pointing out that the quo warranto petition is a legal matter that should be resolved by the SC, Poe in her statement, said, “As the constitution mandates, the Senate’s jurisdiction over franchises remains despite the existence of the petition.”
The senator chairs the Senate Committee on Public Services which tackles franchises given to public utilities and media companies. She said she plans to discuss the franchise even with Calida’s petition.
“At any case, every franchise undergoes a public hearing and I intend to tackle these issues in a fair and a deliberative manner,” Poe said.
“I think this is not just an issue of franchise, but this is in a broader stroke, a concern for fair and sound business practice, press freedom, and jobs for all the employees of the television network,” she added.
Poe said she hopes that the High Court will decide on Calida’s petition “on the basis fairness and for the interest of the greatest number of people.”
Senate President Vicente Sotto III, on the other hand, was mum about Calida’s move as he believed that the ABS-CBN’s franchise would still be tackled by the Senate.
“Considering the possibility of the franchise reaching the Senate, I would rather reserve my opinion on the matter,” Sotto said in a text message sent to reporters.
When pressed on the possible effect of the quo warranto case on the franchise bills filed in Congress, he said “it’s prudent to not judge it” because “it might have an effect when we decide later should it reach us.”
The Senate will have to wait for the House of Representatives before it tackles any measures on the renewal of the ABS-CBN’s 25-year franchise, granted on March 30, 1995, and set to expire on March 30. The Lower Chamber has not taken up the matter yet.
The quo warranto case finally came after President Duterte’s repeated vow to block the renewal of ABS-CBN’s franchise, for its supposed failure to air his 2016 presidential campaign advertisement despite paying the network for it.
Presidential spokesman Salvador Panelo said the President had nothing to do with the quo warranto petition, saying instead that it is part of the Solicitor General’s job.
Calida filed the same petition in 2018 to remove from office former Chief Justice Maria Lourdes Sereno, who was critical of the Duterte administration.
https://news.mb.com.ph/2020/02/10/poe-congress-has-authority-over-abs-cbn-legislative-franchise/
Senators air support for ABS-CBN franchise renewal
By Hannah Torregoza
Some senators have expressed their support for the renewal of the franchise of ABS-CBN Network, which until remains languishing at the House of Representatives.
Sen. Francis “Kiko” Pangilinan said he believes a majority of the members of the Senate are in favor of the franchise renewal of the media network.
Thus, Pangilinan said, there was still time for Congress to approve the measure seeking to renew ABS-CBN’s franchise which is expected to expire on March 30, 2020.
Congress has until March 11 to tackle the measure, before adjourning.
“Press freedom is so much important and ABS-CBN is one of the pillars of press freedom in the country. It’s closure will mean a threat to press freedom,” Pangilinan said.
He also said ABS-CBN was a publicly listed corporation and its stockholders belong to the general public that also prefers the continuation of the network’s operations.
Sen. Joel Villanueva, for his part, said he favored the renewal of their franchise in order to secure the employees of the network who stand to lose their jobs once the franchise of the media network is terminated.
“Thousands of jobs are at stake here. It’s important that we take it (measure) up as soon as possible),” according to Villanueva.
Sen. Imelda “Imee” Marcos also said she was open to the proposal to extend ABS-CBN’s franchise and this should be reviewed carefully by the Senate.
Other senators who have already signified their support for ABS-CBN were Senators Grace Poe and Ramon “Bong” Revilla, Jr.
https://news.mb.com.ph/2020/02/09/senators-air-support-for-abs-cbn-franchise-renewal/
Some senators have expressed their support for the renewal of the franchise of ABS-CBN Network, which until remains languishing at the House of Representatives.
Sen. Francis “Kiko” Pangilinan said he believes a majority of the members of the Senate are in favor of the franchise renewal of the media network.
Thus, Pangilinan said, there was still time for Congress to approve the measure seeking to renew ABS-CBN’s franchise which is expected to expire on March 30, 2020.
Congress has until March 11 to tackle the measure, before adjourning.
“Press freedom is so much important and ABS-CBN is one of the pillars of press freedom in the country. It’s closure will mean a threat to press freedom,” Pangilinan said.
He also said ABS-CBN was a publicly listed corporation and its stockholders belong to the general public that also prefers the continuation of the network’s operations.
Sen. Joel Villanueva, for his part, said he favored the renewal of their franchise in order to secure the employees of the network who stand to lose their jobs once the franchise of the media network is terminated.
“Thousands of jobs are at stake here. It’s important that we take it (measure) up as soon as possible),” according to Villanueva.
Sen. Imelda “Imee” Marcos also said she was open to the proposal to extend ABS-CBN’s franchise and this should be reviewed carefully by the Senate.
Other senators who have already signified their support for ABS-CBN were Senators Grace Poe and Ramon “Bong” Revilla, Jr.
https://news.mb.com.ph/2020/02/09/senators-air-support-for-abs-cbn-franchise-renewal/