ABS-CBN Corp. and its subsidiary ABS-CBN Convergence Inc. answered allegations of violations against its franchise thrown by Solicitor General Jose Calida on Monday.
The network giant filed the comment on the Office of the Solicitor General's quo warranto petition before the Supreme Court on Monday, the same morning that the Senate hears bills calling for franchise renewal of the network and looks into supposed violations against its franchise law.
A copy of the comment however has yet to be made public as of this story’s posting.
Solicitor General Jose Calida accused the network of violating Republic Act 7966, its franchise law, and RA 8332, which granted a franchise to Multi-Media Telephony.
He said in a statement released on the day of filing: “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 accused the network of foreign ownership through the issuance of Philippine Depositary Receipts, financial tools that give foreign investors a passive economic ownership restriction in a Philippine company.
He also said that the ABS-CBN is operating its Kapamilya Box Office Channel without permit from the National Telecommunications Commission.
ABS-CBN Convergence, the network’s subsidiary, is accused of resorting to “corporate layering” for using the franchise of Multi-media Telephony without Congressional approval.
The network, in an earlier released statement, denied all the allegations and asserted that it does not violate the laws.
This is a developing story.
https://www.philstar.com/headlines/2020/02/24/1995701/abs-cbn-answers-calidas-quo-warranto-petition-vs-franchise
Monday, February 24, 2020
ABS-CBN’s franchise expires on May 4, not March 30 — DOJ chief
The franchise of ABS-CBN will expire on May 4 and not on March 30.
This is according to Justice Secretary Menardo Guevarra during Monday’s Senate public services committee hearing on the franchise of ABS-CBN and six other broadcast companies.
“Based on the records on our possession, the following facts are undisputed. Number one, in the case of ABS-CBN, its franchise covered by Republic Act No. 7966 enacted on 30 March 1995, provides for a term of 25 years from the effectivity of the franchise,” Guevarra told the Senate panel.
He noted that Section 15 of the said act provides that the franchise becomes effective 15 days from date of publication in at least two newspapers of general circulation.
“The franchise was published on April 19, 1995. For that reason, the franchise will expire on May 4, 2020,” he pointed out.
The Senate will tackle the franchise of ABS-CBN while the House of Representatives has yet to act on pending bills seeking its renewal.
https://newsinfo.inquirer.net/1232572/abs-cbns-franchise-expires-on-may-4-not-march-30-doj-chief
This is according to Justice Secretary Menardo Guevarra during Monday’s Senate public services committee hearing on the franchise of ABS-CBN and six other broadcast companies.
“Based on the records on our possession, the following facts are undisputed. Number one, in the case of ABS-CBN, its franchise covered by Republic Act No. 7966 enacted on 30 March 1995, provides for a term of 25 years from the effectivity of the franchise,” Guevarra told the Senate panel.
He noted that Section 15 of the said act provides that the franchise becomes effective 15 days from date of publication in at least two newspapers of general circulation.
“The franchise was published on April 19, 1995. For that reason, the franchise will expire on May 4, 2020,” he pointed out.
The Senate will tackle the franchise of ABS-CBN while the House of Representatives has yet to act on pending bills seeking its renewal.
https://newsinfo.inquirer.net/1232572/abs-cbns-franchise-expires-on-may-4-not-march-30-doj-chief
ABS-CBN franchise to expire on May 4, 2020 – DOJ
Media giant ABS-CBN Corporation has more time to operate as it awaits the renewal of its broadcast franchise.
Justice Secretary Menardo Guevarra on Monday said the franchise will lapse on May 4, 2020 — not March 30 as widely reported.
During the Senate Committee on Public Services inquiry into ABS-CBN's franchise, he said the 25-year franchise was granted on March 30, 1995, but it becomes effective 15 days after it is published in newspapers. He added this is an "undisputed fact."
"Based on facts available to us, the franchise was published on April 19, 1995. For that reason, the franchise will expire on May 4, 2020," he said.
House Speaker Alan Peter Cayetano earlier said the House may be able to tackle the bills in May at the earliest, citing “more urgent" measures on deck for lawmakers.
A total of eleven bills seeking to renew ABS-CBN’s legal mandate are languishing before the lower chamber.
https://www.cnnphilippines.com/news/2020/2/24/ABS-CBN-franchise-expiration-Senate-hearing.html
ABS-CBN employees pray for franchise renewal ahead of Senate probe
Hundreds of employees joined Monday a prayer rally for the renewal of ABS-CBN Corps's broadcast franchise, ahead of a Senate inquiry into supposed violations that the government's top lawyer cited in a move to close the country's largest media network.
The Senate committee hearing is scheduled on the same day the network responded to Solicitor General Jose Calida’s quo warranto petition to take it off the air.
House Speaker Alan Peter Cayetano had said the inquiry might violate a constitutional provision that franchise bills should be tackled first by the lower chamber of Congress before the Senate.
The Senate committee hearing is scheduled on the same day the network responded to Solicitor General Jose Calida’s quo warranto petition to take it off the air.
House Speaker Alan Peter Cayetano had said the inquiry might violate a constitutional provision that franchise bills should be tackled first by the lower chamber of Congress before the Senate.
House begins ‘proceedings’ on ABS-CBN franchise, asks for position papers
House committee on legislative franchises chair Franz Alvarez says his panel will schedule a hearing only when all documents have been received
After sitting on the bills renewing the franchise of ABS-CBN, the House committee on legislative franchises will begin “proceedings” on the measures by asking all parties to submit their position papers.
In a text message to Rappler, panel chairperson Franz Alvarez said this will be formally announced during the committee on legislative franchises’ meeting on Monday, February 24.
“The committee will ask all sides (pro/anti) to submit their position papers so that we can start reviewing them before we hold our hearing proper for the franchise renewal,” the Palawan 1st District congressman said.
This legislative franchises panel's meeting, however, was not included in the list of committee hearings posted in the House website as of posting.
Alvarez said the House committee will schedule the first hearing on the ABS-CBN franchise renewal bills only when they are done reviewing all position papers.
But he did not say how long it would take for the committee to go through all documents nor when the hearing would likely happen. In contrast, the Senate public services committee is set to hold its first hearing on ABS-CBN on Monday.
At least 12 bills have been filed in the House that would renew for another 25 years the soon-to-expire franchise of ABS-CBN, the country’s biggest media network. Its current franchise, approved under Republic Act Np. 7966, is already due to expire on March 30. (READ: What's taking Congress so long to tackle ABS-CBN's franchise?)
Despite calls from other lawmakers and media groups for the House to begin deliberating on these bills, the committee on legislative franchises has yet to schedule any hearing.
No less than President Rodrigo Duterte and Speaker Alan Peter Cayetano – running mates in the 2016 elections – both have grudges against ABS-CBN.
Duterte accused the network of “swindling” him for not airing his paid political advertisements during the campaign, while Cayetano claimed vice presidential candidates were given unfair air time.
These allegations, on top of Cayetano’s argument that the House needs to prioritze tax bills first, are the reasons cited by the Speaker why he had said the lower chamber would likely begin hearing the ABS-CBN franchise bills only in May or early August – when the network’s franchise will be long expired.
Alvarez insists ABS-CBN won’t close down
In a separate interview with ABS-CBN's Umagang Kay Ganda show, Alvarez said the network would not need to close down should Congress fail to renew its franchise by March 30.
He said his committee is currently in talks with the National Telecommunications Commission (NTC) so the latter could give provisional authority to the media network to continue operating.
“Sa ngayon po, habang dinidinig po ang prangkisa ng ABS-CBN sa Kongreso, nakikipag-ugnayan po kami sa NTC upang siguraduhin na ang network ay magpapatuloy ng kanilang pagbo-broadcast. Hinahintay din po namin 'yung opinyon ng DOJ (Department of Justice) tungkol dito,” Alvarez said.
(Right now, while Congress is hearing the bills on franchise of ABS-CBN, we are in talks with NTC to ensure the network would continue its broadcast. We're also waiting for the opinion of DOJ.)
The House committee chair argued this was done before for the franchise of faith-based station Radio Veritas.
But legal experts told Rappler it would be illegal for ABS-CBN to continue operating until 2022 under its current franchise once its expires by March.
Jun Rodriguez, lecturer on Contemporary Issues in Media Law at Ateneo de Manila University’s Masters in Journalism program, argued the pending ABS-CBN franchise bills “are not law.”
“It is the law that grants the franchise or the right. Without the law that grants the right, there is no right and therefore there is nothing to exercise. The fact that they have the intention, perhaps, to renew it is not exactly the same as renewing it or extending the right to them for another period,” he said.
https://www.rappler.com/nation/252529-house-begins-proceedings-abs-cbn-franchise-asks-position-papers
After sitting on the bills renewing the franchise of ABS-CBN, the House committee on legislative franchises will begin “proceedings” on the measures by asking all parties to submit their position papers.
In a text message to Rappler, panel chairperson Franz Alvarez said this will be formally announced during the committee on legislative franchises’ meeting on Monday, February 24.
“The committee will ask all sides (pro/anti) to submit their position papers so that we can start reviewing them before we hold our hearing proper for the franchise renewal,” the Palawan 1st District congressman said.
This legislative franchises panel's meeting, however, was not included in the list of committee hearings posted in the House website as of posting.
Alvarez said the House committee will schedule the first hearing on the ABS-CBN franchise renewal bills only when they are done reviewing all position papers.
But he did not say how long it would take for the committee to go through all documents nor when the hearing would likely happen. In contrast, the Senate public services committee is set to hold its first hearing on ABS-CBN on Monday.
At least 12 bills have been filed in the House that would renew for another 25 years the soon-to-expire franchise of ABS-CBN, the country’s biggest media network. Its current franchise, approved under Republic Act Np. 7966, is already due to expire on March 30. (READ: What's taking Congress so long to tackle ABS-CBN's franchise?)
Despite calls from other lawmakers and media groups for the House to begin deliberating on these bills, the committee on legislative franchises has yet to schedule any hearing.
No less than President Rodrigo Duterte and Speaker Alan Peter Cayetano – running mates in the 2016 elections – both have grudges against ABS-CBN.
Duterte accused the network of “swindling” him for not airing his paid political advertisements during the campaign, while Cayetano claimed vice presidential candidates were given unfair air time.
These allegations, on top of Cayetano’s argument that the House needs to prioritze tax bills first, are the reasons cited by the Speaker why he had said the lower chamber would likely begin hearing the ABS-CBN franchise bills only in May or early August – when the network’s franchise will be long expired.
Alvarez insists ABS-CBN won’t close down
In a separate interview with ABS-CBN's Umagang Kay Ganda show, Alvarez said the network would not need to close down should Congress fail to renew its franchise by March 30.
He said his committee is currently in talks with the National Telecommunications Commission (NTC) so the latter could give provisional authority to the media network to continue operating.
“Sa ngayon po, habang dinidinig po ang prangkisa ng ABS-CBN sa Kongreso, nakikipag-ugnayan po kami sa NTC upang siguraduhin na ang network ay magpapatuloy ng kanilang pagbo-broadcast. Hinahintay din po namin 'yung opinyon ng DOJ (Department of Justice) tungkol dito,” Alvarez said.
(Right now, while Congress is hearing the bills on franchise of ABS-CBN, we are in talks with NTC to ensure the network would continue its broadcast. We're also waiting for the opinion of DOJ.)
The House committee chair argued this was done before for the franchise of faith-based station Radio Veritas.
But legal experts told Rappler it would be illegal for ABS-CBN to continue operating until 2022 under its current franchise once its expires by March.
Jun Rodriguez, lecturer on Contemporary Issues in Media Law at Ateneo de Manila University’s Masters in Journalism program, argued the pending ABS-CBN franchise bills “are not law.”
“It is the law that grants the franchise or the right. Without the law that grants the right, there is no right and therefore there is nothing to exercise. The fact that they have the intention, perhaps, to renew it is not exactly the same as renewing it or extending the right to them for another period,” he said.
https://www.rappler.com/nation/252529-house-begins-proceedings-abs-cbn-franchise-asks-position-papers
What's taking Congress so long to tackle ABS-CBN's franchise?
Time is running out for broadcast giant ABS-CBN, as Congress has yet to approve bills renewing its legislative franchise that would allow its continued operations.
On March 30, 2020, Republic Act No. 7966, which approved ABS-CBN's franchise for 25 years, will expire.
Measures seeking to grant ABS-CBN another 25 years in broadcast operations have been filed as early as July 1, 2019, the first day the 18th Congress opened the filing of bills.
Until now, none has been approved.
In the 17th Congress, it took less than 3 months of congressional session for the franchise of a mainstream broadcast company to get approved.
With ABS-CBN's franchise, what's taking Congress so long?
Quick approval
During the 17th Congress, at least 50 national and local broadcast franchises were signed into law by President Rodrigo Duterte.
An in-depth look at the franchise approvals of national broadcast firms showed how quickly they hurdled Congress in the 17th Congress, except for ABS-CBN.
Particularly, we looked at the approvals of TV and radio broadcast firms GMA Network, TV5, and Manila Broadcasting Company (MBC); the religious broadcast arm of the Catholics Bishops Conference of the Philippines (CBCP); and MBC-subsidiary Pacific Broadcasting System Inc, which relays radio station DZRH in the provinces.
Rappler computed the number of days it took the chambers' plenaries to pass the measure, from the day the committee report was filed up to the day it was approved on 3rd reading. Days when Congress was adjourned were excluded.
On average, it took the House of Representatives around 13 days to pass a franchise bill, once the committee report had been filed by Palawan 1st District Representative Franz Alvarez, chair of the House panel on legislative franchises.
GMA Network
The quickest passage in the lower chamber was for the franchise of GMA Network, the first to be renewed under the Duterte administration.
It took congressmen just 11 days to approve the measure. The committee report on GMA's franchise was filed on December 7, 2016, signaling the start of plenary debates once sponsored on the floor. Congress then went on break from December 17, 2016 to January 15, 2017.
When the 17th Congress resumed, GMA Network's franchise had been approved by the lower house on 3rd and final reading on January 16, 2017. It was later signed into law on April 21, 2017.
CBCP
CBCP did not encounter any roadblocks at the House too, despite being a vocal critic of the Duterte administration under the presidency of Lingayen-Dagupan Archbishop Socrates Villegas.
When Congress took up CBCP's renewal for broadcast operations, Duterte's friend Davao Archbishop Romulo Valles was already leading the bishops' conference. (READ: Incoming CBCP head views self as Duterte's 'friend-sinner')
It took 21 days for its permit to be approved.
ABS-CBN, Pacific Broadcasting System
In the case of ABS-CBN, at least 3 lawmakers have filed bills seeking to renew its broadcast operations. But these were never taken up by the House committee on legislative franchises:
House Bill 4349 filed by Nueva Ecija 2nd district Representative Micaela Violago for ABS-CBN Corporation
House Bill 8163 filed by brothers Davao City 1st district Representative Karlo Nograles and PBA Party List Representative Jericho Nograles
Like ABS-CBN, Pacific Broadcasting System's franchise was approved on March 30, 1995 under Republic Act 7967. It is also set to expire on March 30, 2020, but its renewal was approved by Congress during the 17th Congress.
At the Senate, it took Senator Grace Poe, the Senate committee on public services chairperson, an average of 32 days or a month to get a franchise bill to be approved by senators, once a commitee report had been filed.
Among mainstream broadcast firms, passage took the longest time with the Pacific Broadcasting System's franchise for a total of 80 days or less than 3 months, as it was lumped with other regional firms.
The committee report on Pacific Broadcasting System's franchise was filed on September 19, 2018. It was later approved on final reading on January 28, 2019, passing through two congressional breaks for a total of 58 days or nearly two months.
TV5
The quickest approval in the Senate, meanwhile, was for the franchise of TV5 Network which took only 7 days, from the filing of the committee report and sponsorship on the floor on January 28, 2019 to the passage on 3rd and final reading on February 4, 2019.
TV5 and CBCP's franchise both lapsed into law on April 22, 2019.
ABS-CBN not in House agenda in 18th Congress
In the current 18th Congress, the House committee on legislative franchises has, so far, been swift in approving the franchise of major broadcasting networks. Except ABS-CBN.
The panel held its first hearing only on August 27, 2019, yet less than a month later, the committee was already able to pass its report on the franchise renewal of the First United Broadcasting Corporation (FUBC), presently known as the Global Satellite Technology Services Inc.
The FUBC franchise bill was later sent to the House plenary, where it was approved on second reading on September 24, 2019. The 18th Congress then had to adjourn session from October 5 to November 2019.
But when session reopened, the lower chamber finally gave its nod to renewing for another 25 years FUBC's franchise on November 12, 2019. All in all, the approval process took 35 days.
Three other networks whose franchises were up for renewal – Golden Broadcast Professional Inc, Broadcast Enterprises and Affiliated Media Inc, and Crusaders Broadcasting System Inc – were luckier.
The committee reports on the bills renewing their respective franchises were all approved by the House panel on September 12, 2019, passed on second reading on September 17, 2019, and approved on 3rd and final reading a week later.
By mid-November 2019, the House committee on legislative franchises was already busy deliberating on bills under its jurisdiction, yet it members continued to exclude ABS-CBN in its agenda.
As of Sunday, February 23, 18 lawmakers had filed 12 bills in the Duterte-controlled House to push for the franchise renewal of the country's biggest media network.
These bill authors were also among the 91 legislators who crossed party lines to sign House Resolution (HR) No. 639, which "urges" the House legislative franchises committee to finally "report out without further delay for plenary action" a consolidated version of all bils seeking to renew ABS-CBN's franchise.
But their calls have remained unheard, and it's not surprising. Both the President and Speaker Alan Peter Cayetano – running mates in the 2016 elections – have axes to grind with ABS-CBN.
Duterte had accused the media giant of allegedly "swindling" him and not airing his paid political ads, while Cayetano claimed ABS-CBN gave unfair air time to vice presidential candidates during the campaign.
Cayetano said the House will only set hearings on ABS-CBN either in May or early August – long after its franchise expires. Alvarez, the chair of the House committee on legislative franchises, continues to evade questions from the media too.
House vs Senate over ABS-CBN?
As the expiration of ABS-CBN's franchise looms, the ball is now in the court of the House that refuses to budge. But the Senate already decided it cannot wait for the lower chamber.
Poe's Senate public services committee is set to hold a hearing on ABS-CBN's franchise on Monday, February 24, angering Cayetano who argued it was unconstitutional for the upper chamber to do so.
The Speaker cited Section 24, Article VI of the Constitution, which states that all bills on appropriations, revenue, tariffs, authorizing the increase of public debt, bills of local application, and private bills "shall originate in the House of Representatives, but the Senate may propose or concur with amendments."
Cayetano said a legislative franchise is considered a private bill, as it is a "proposal for a law that would apply to a particular individual or group of individuals, or corporate entity, in this case ABS-CBN."
"Nagtataka lang ako kay Senator Grace Poe at sa mga senador, kapag cha-cha (charter change) pinag-usapan, ayaw nila. 'Wag daw muna pag-usapan, pero they feel free to violate the Constitution. Ano ba sabi sa Constitution? Sa’n ba mag-uumpisa ang prangkisa: sa House o sa Senate?" the Speaker said in an ambush interview in Iba, Zambales on February 24.
(I'm wondering why Senator Grace Poe and the other senators don't want to talk about charter change. They don't want to talk about it, but they feel free to violate the Constitution. What does the Constitution say? Where do franchises emanate from: the House or the Senate?)
Senate Minority Leader Franklin Drilon, however, said they are not going to be violating the Constitution if the said hearing pushes through on Monday.
The 4-time Senate president cited jurisprudence from the Tolentino v. Secretary of Finance case, where the High Court ruled the Constitution does not bar the Senate from hearing a proposed measure "in anticipation of its receipt of the bill from the House.”
"The House of Representatives is aware of this practice. Since time immemorial, we have been hearing the budget simultaneously with the House of Representatives only that we do not debate on this on the floor until we receive the House version," Drilon said in a statement on Sunday.
"Our former colleagues who are now members of the lower chamber knew about this practice and they participated in hearings of this nature when they were in the Senate. They did not say it was unconstitutional then," he added.
Poe shared the same sentiments, arguing that the Senate kicked off its own hearings in the past on the General Appropriations Act (GAA) and the Tax Reform for Acceleration and Inclusion (TRAIN) law even without the House transmitting its approved version yet.
What would be unconstitutional for Poe to do, senators said, is filing a committee report on ABS-CBN's franchise before the House passes its counterpart measure. Poe said she would only be able to report the findings of her committee, once the House transmits its version. February 24's hearing, in effect, pressures the House to start its own soon.
Without a renewed permit, it would be illegal for ABS-CBN to continue its broadcast operations after March 30, contrary to what Cayetano and other congressmen have said. If the House continues to sit on the media giant's 25-year franchise renewal, ABS-CBN's only hope is Senate Joint Resolution (SJR) No. 11, which seeks to extend the media giant's broadcast permit by more than two years or on December 31, 2022.
SJR 11 would still have to be adopted by both chambers of Congress before it goes on break on March 14. But the resolution would only be effective if Duterte decides to sign it once it reaches his office. Should the President decide to approve or veto the measure, a two-thirds vote in both chambers is needed to override it.
It remains to be seen if the battle for ABS-CBN's franchise renewal would also turn into a fight betwen the two houses of Congress. – Rappler.com
https://www.rappler.com/newsbreak/in-depth/252401-congress-franchise-bills-approval-period
On March 30, 2020, Republic Act No. 7966, which approved ABS-CBN's franchise for 25 years, will expire.
Measures seeking to grant ABS-CBN another 25 years in broadcast operations have been filed as early as July 1, 2019, the first day the 18th Congress opened the filing of bills.
Until now, none has been approved.
In the 17th Congress, it took less than 3 months of congressional session for the franchise of a mainstream broadcast company to get approved.
With ABS-CBN's franchise, what's taking Congress so long?
Quick approval
During the 17th Congress, at least 50 national and local broadcast franchises were signed into law by President Rodrigo Duterte.
An in-depth look at the franchise approvals of national broadcast firms showed how quickly they hurdled Congress in the 17th Congress, except for ABS-CBN.
Particularly, we looked at the approvals of TV and radio broadcast firms GMA Network, TV5, and Manila Broadcasting Company (MBC); the religious broadcast arm of the Catholics Bishops Conference of the Philippines (CBCP); and MBC-subsidiary Pacific Broadcasting System Inc, which relays radio station DZRH in the provinces.
Rappler computed the number of days it took the chambers' plenaries to pass the measure, from the day the committee report was filed up to the day it was approved on 3rd reading. Days when Congress was adjourned were excluded.
On average, it took the House of Representatives around 13 days to pass a franchise bill, once the committee report had been filed by Palawan 1st District Representative Franz Alvarez, chair of the House panel on legislative franchises.
GMA Network
The quickest passage in the lower chamber was for the franchise of GMA Network, the first to be renewed under the Duterte administration.
It took congressmen just 11 days to approve the measure. The committee report on GMA's franchise was filed on December 7, 2016, signaling the start of plenary debates once sponsored on the floor. Congress then went on break from December 17, 2016 to January 15, 2017.
When the 17th Congress resumed, GMA Network's franchise had been approved by the lower house on 3rd and final reading on January 16, 2017. It was later signed into law on April 21, 2017.
CBCP
CBCP did not encounter any roadblocks at the House too, despite being a vocal critic of the Duterte administration under the presidency of Lingayen-Dagupan Archbishop Socrates Villegas.
When Congress took up CBCP's renewal for broadcast operations, Duterte's friend Davao Archbishop Romulo Valles was already leading the bishops' conference. (READ: Incoming CBCP head views self as Duterte's 'friend-sinner')
It took 21 days for its permit to be approved.
ABS-CBN, Pacific Broadcasting System
In the case of ABS-CBN, at least 3 lawmakers have filed bills seeking to renew its broadcast operations. But these were never taken up by the House committee on legislative franchises:
House Bill 4349 filed by Nueva Ecija 2nd district Representative Micaela Violago for ABS-CBN Corporation
House Bill 8163 filed by brothers Davao City 1st district Representative Karlo Nograles and PBA Party List Representative Jericho Nograles
Like ABS-CBN, Pacific Broadcasting System's franchise was approved on March 30, 1995 under Republic Act 7967. It is also set to expire on March 30, 2020, but its renewal was approved by Congress during the 17th Congress.
At the Senate, it took Senator Grace Poe, the Senate committee on public services chairperson, an average of 32 days or a month to get a franchise bill to be approved by senators, once a commitee report had been filed.
Among mainstream broadcast firms, passage took the longest time with the Pacific Broadcasting System's franchise for a total of 80 days or less than 3 months, as it was lumped with other regional firms.
The committee report on Pacific Broadcasting System's franchise was filed on September 19, 2018. It was later approved on final reading on January 28, 2019, passing through two congressional breaks for a total of 58 days or nearly two months.
TV5
The quickest approval in the Senate, meanwhile, was for the franchise of TV5 Network which took only 7 days, from the filing of the committee report and sponsorship on the floor on January 28, 2019 to the passage on 3rd and final reading on February 4, 2019.
TV5 and CBCP's franchise both lapsed into law on April 22, 2019.
ABS-CBN not in House agenda in 18th Congress
In the current 18th Congress, the House committee on legislative franchises has, so far, been swift in approving the franchise of major broadcasting networks. Except ABS-CBN.
The panel held its first hearing only on August 27, 2019, yet less than a month later, the committee was already able to pass its report on the franchise renewal of the First United Broadcasting Corporation (FUBC), presently known as the Global Satellite Technology Services Inc.
The FUBC franchise bill was later sent to the House plenary, where it was approved on second reading on September 24, 2019. The 18th Congress then had to adjourn session from October 5 to November 2019.
But when session reopened, the lower chamber finally gave its nod to renewing for another 25 years FUBC's franchise on November 12, 2019. All in all, the approval process took 35 days.
Three other networks whose franchises were up for renewal – Golden Broadcast Professional Inc, Broadcast Enterprises and Affiliated Media Inc, and Crusaders Broadcasting System Inc – were luckier.
The committee reports on the bills renewing their respective franchises were all approved by the House panel on September 12, 2019, passed on second reading on September 17, 2019, and approved on 3rd and final reading a week later.
By mid-November 2019, the House committee on legislative franchises was already busy deliberating on bills under its jurisdiction, yet it members continued to exclude ABS-CBN in its agenda.
As of Sunday, February 23, 18 lawmakers had filed 12 bills in the Duterte-controlled House to push for the franchise renewal of the country's biggest media network.
These bill authors were also among the 91 legislators who crossed party lines to sign House Resolution (HR) No. 639, which "urges" the House legislative franchises committee to finally "report out without further delay for plenary action" a consolidated version of all bils seeking to renew ABS-CBN's franchise.
But their calls have remained unheard, and it's not surprising. Both the President and Speaker Alan Peter Cayetano – running mates in the 2016 elections – have axes to grind with ABS-CBN.
Duterte had accused the media giant of allegedly "swindling" him and not airing his paid political ads, while Cayetano claimed ABS-CBN gave unfair air time to vice presidential candidates during the campaign.
Cayetano said the House will only set hearings on ABS-CBN either in May or early August – long after its franchise expires. Alvarez, the chair of the House committee on legislative franchises, continues to evade questions from the media too.
House vs Senate over ABS-CBN?
As the expiration of ABS-CBN's franchise looms, the ball is now in the court of the House that refuses to budge. But the Senate already decided it cannot wait for the lower chamber.
Poe's Senate public services committee is set to hold a hearing on ABS-CBN's franchise on Monday, February 24, angering Cayetano who argued it was unconstitutional for the upper chamber to do so.
The Speaker cited Section 24, Article VI of the Constitution, which states that all bills on appropriations, revenue, tariffs, authorizing the increase of public debt, bills of local application, and private bills "shall originate in the House of Representatives, but the Senate may propose or concur with amendments."
Cayetano said a legislative franchise is considered a private bill, as it is a "proposal for a law that would apply to a particular individual or group of individuals, or corporate entity, in this case ABS-CBN."
"Nagtataka lang ako kay Senator Grace Poe at sa mga senador, kapag cha-cha (charter change) pinag-usapan, ayaw nila. 'Wag daw muna pag-usapan, pero they feel free to violate the Constitution. Ano ba sabi sa Constitution? Sa’n ba mag-uumpisa ang prangkisa: sa House o sa Senate?" the Speaker said in an ambush interview in Iba, Zambales on February 24.
(I'm wondering why Senator Grace Poe and the other senators don't want to talk about charter change. They don't want to talk about it, but they feel free to violate the Constitution. What does the Constitution say? Where do franchises emanate from: the House or the Senate?)
Senate Minority Leader Franklin Drilon, however, said they are not going to be violating the Constitution if the said hearing pushes through on Monday.
The 4-time Senate president cited jurisprudence from the Tolentino v. Secretary of Finance case, where the High Court ruled the Constitution does not bar the Senate from hearing a proposed measure "in anticipation of its receipt of the bill from the House.”
"The House of Representatives is aware of this practice. Since time immemorial, we have been hearing the budget simultaneously with the House of Representatives only that we do not debate on this on the floor until we receive the House version," Drilon said in a statement on Sunday.
"Our former colleagues who are now members of the lower chamber knew about this practice and they participated in hearings of this nature when they were in the Senate. They did not say it was unconstitutional then," he added.
Poe shared the same sentiments, arguing that the Senate kicked off its own hearings in the past on the General Appropriations Act (GAA) and the Tax Reform for Acceleration and Inclusion (TRAIN) law even without the House transmitting its approved version yet.
What would be unconstitutional for Poe to do, senators said, is filing a committee report on ABS-CBN's franchise before the House passes its counterpart measure. Poe said she would only be able to report the findings of her committee, once the House transmits its version. February 24's hearing, in effect, pressures the House to start its own soon.
Without a renewed permit, it would be illegal for ABS-CBN to continue its broadcast operations after March 30, contrary to what Cayetano and other congressmen have said. If the House continues to sit on the media giant's 25-year franchise renewal, ABS-CBN's only hope is Senate Joint Resolution (SJR) No. 11, which seeks to extend the media giant's broadcast permit by more than two years or on December 31, 2022.
SJR 11 would still have to be adopted by both chambers of Congress before it goes on break on March 14. But the resolution would only be effective if Duterte decides to sign it once it reaches his office. Should the President decide to approve or veto the measure, a two-thirds vote in both chambers is needed to override it.
It remains to be seen if the battle for ABS-CBN's franchise renewal would also turn into a fight betwen the two houses of Congress. – Rappler.com
https://www.rappler.com/newsbreak/in-depth/252401-congress-franchise-bills-approval-period
Ryle to refocus priorities if ABS-CBN loses franchise
For Ryle Santiago, it’s heartening to see his fellow celebrities and other industry insiders set aside network wars amid threats to shut down ABS-CBN.
“We’re thankful for the support of those from other networks. Seeing them rallying behind us and the company is heartening. After all, we’re all part of one industry,” he told the Inquirer at the blessing of Mega One building, which houses Megasoft—a hygiene product brand the young actor endorses.
The renewal of ABS-CBN’s franchise, which is set to expire by the end of March, currently hangs in the balance. The Kapamilya network is also facing legal troubles related to the Office of the Solicitor General’s quo warranto petition, asking the Supreme court to stop ABS-CBN’s operations.
“I have been working for the network for six years—many more others have been there for much longer. I hope we all stay strong. ’Di tayo pababayaan ng Diyos. I would like to believe that, no matter what the government’s decision is, we will all be fine,” Ryle said. “We need prayers. Kapit lang.”
The 21-year-old Star Magic talent is a mainstay in the noontime variety program, “It’s Showtime,” as part of the all-male dance group Hashtags. “Of course, I stand to lose a lot, because I appear on that show every day. And I have been pouring my efforts on that show all these years,” Ryle pointed out.
But if the worst happens, Ryle is hoping he could take it all in stride. “Maybe I can focus on other things here in show biz. I have already established a YouTube channel, I guess I could continue using that,” he surmised.
As part of his endorsement duties, Ryle participates in Megasoft’s “School is Cool” education advocacy program, which has so far toured 85 schools around the country. Aside from performing for students, he also engages in talks about different topics and issues concerning the youth.
“We get to inspire other people. Not to be cheesy, but it’s a great feeling seeing students waiting for you … telling you that they look up to you,” said Ryle, who’s the son of actress Sherilyn Reyes. “Doing this initiative also helps me hone my performance skills—dancing, public speaking.”
Ryle also related that he’s in talks with a nonprofit organization advocating for the protection of boys or young men from abuse. “Nothing is final, but they’re interested in getting me as an ambassador,” he said. “Young boys also experience violence and abuse, and it will be great if there are people who can guide them.” INQ
https://entertainment.inquirer.net/365690/ryle-to-refocus-priorities-if-abs-cbn-loses-franchise
“We’re thankful for the support of those from other networks. Seeing them rallying behind us and the company is heartening. After all, we’re all part of one industry,” he told the Inquirer at the blessing of Mega One building, which houses Megasoft—a hygiene product brand the young actor endorses.
The renewal of ABS-CBN’s franchise, which is set to expire by the end of March, currently hangs in the balance. The Kapamilya network is also facing legal troubles related to the Office of the Solicitor General’s quo warranto petition, asking the Supreme court to stop ABS-CBN’s operations.
“I have been working for the network for six years—many more others have been there for much longer. I hope we all stay strong. ’Di tayo pababayaan ng Diyos. I would like to believe that, no matter what the government’s decision is, we will all be fine,” Ryle said. “We need prayers. Kapit lang.”
The 21-year-old Star Magic talent is a mainstay in the noontime variety program, “It’s Showtime,” as part of the all-male dance group Hashtags. “Of course, I stand to lose a lot, because I appear on that show every day. And I have been pouring my efforts on that show all these years,” Ryle pointed out.
But if the worst happens, Ryle is hoping he could take it all in stride. “Maybe I can focus on other things here in show biz. I have already established a YouTube channel, I guess I could continue using that,” he surmised.
As part of his endorsement duties, Ryle participates in Megasoft’s “School is Cool” education advocacy program, which has so far toured 85 schools around the country. Aside from performing for students, he also engages in talks about different topics and issues concerning the youth.
“We get to inspire other people. Not to be cheesy, but it’s a great feeling seeing students waiting for you … telling you that they look up to you,” said Ryle, who’s the son of actress Sherilyn Reyes. “Doing this initiative also helps me hone my performance skills—dancing, public speaking.”
Ryle also related that he’s in talks with a nonprofit organization advocating for the protection of boys or young men from abuse. “Nothing is final, but they’re interested in getting me as an ambassador,” he said. “Young boys also experience violence and abuse, and it will be great if there are people who can guide them.” INQ
https://entertainment.inquirer.net/365690/ryle-to-refocus-priorities-if-abs-cbn-loses-franchise
People power for press freedom
From April to August last year, President Rodrigo Duterte had signed franchise laws granted by the 17th Congress on ten radio and television stations extending them for 25 years. Of the ten companies, six were broadcasting stations that were allowed to construct, install, establish, operate, and maintain radio and television stations in the country.
But as of October last year, The STAR counted as many as 17 bills that President Duterte allowed to lapse into law out of 170 the total of legislative measures enacted during the last five months of the 17th Congress. The Chief Executive chose not to sign franchise bills for the 16 broadcasting and telecommunications entities and just let them lapsed into law.
The TV5 and CBCP Network automatically got their franchises renewed last year after their respective bills lapsed into laws in April. The laws that covered the renewal of TV5 and CBCP were released by Malacañang without the signature of the President only in July of the same year. The two Congress-approved bills merely bore the official stamp of the Office of the President certifying each has lapsed into law.
No explanation was given by Malacañang as to why the President didn’t sign the bills and let it lapsed into law.
The President’s explanation is not mandatory though. For a approved or vetoed Congress-approved legislation, however, normally an explanation why the President rejected it is attached to the enrolled bill.
Unfortunately for ABS-CBN, its franchise bill remains pending before the 18th Congress. Actually, the Kapamilya network’s franchise renewal bill has been stalled since 2016 when this was first filed in the 17th Congress. Its rival network GMA-7 also had a franchise renewal bill that got signed into on the next year.
On July 23, 2019, Nueva Ecija 2nd District Rep. Micaela Violago refiled the bill that will extend ABS-CBN’s franchise for another 25 years. There are 10 other bills authored by different Congressmen on the ABS-CBN franchise renewal pending at the House committee on public services chaired by Palawan Rep. Franz Alvarez.
And also, under our 1987 Constitution, all franchise bills must emanate from the House of Representatives.
The presidential pique against ABS-CBN started when the former Davao City Mayor first complained about the network’s not airing his political ad during the 2016 election campaign but did not allegedly refund the payment for the unaired TV ad.
Allegedly due to President Duterte’s public pronouncements against the Lopez-owned TV-radio-cable network, the ABS-CBN franchise bill was not acted upon during the 17th Congress composed largely of pro-administration lawmakers. Headed by then Speaker and Davao Rep. Pantaleon Alvarez, chief ally of Mayor Duterte, House members were reportedly issued marching orders not to touch the ABS-CBN franchise bill.
But while President Duterte has vowed not to sign into law franchise renewal of the ABS-CBN, take note the Chief Executive has never uttered any declarative statement: “I will approve or veto it.”
One of the ten companies that got their signed franchise bill signed into law last year by President Duterte is owned by erstwhile businessman Ramon Jacinto. A campaign supporter of the former Davao City Mayor, he was appointed as presidential adviser on telecom. Signed under Republic Act (RA) No. 11414, the franchise of the Jacinto family-owned Rajah Broadcasting Network TV-radio station will continue for another 25 years. Incidentally, Jacinto’s radio station, which runs on frequency modulation DzRJ-FM, played an important role during the 1986 People Power Revolution, or EDSA-1 for brevity’s sake.
As we mark the 34th anniversary of EDSA-1 this week, we pause to remember the heroics of the late TV personality June Keithley who used the government-sequestered RJ-FM facility from its office and tower station atop the Jacinto-owned J & T Building in Sta. Mesa, Manila and turned it into “Radyo Bandido.” Keithley repeatedly aired the taped message of the late Manila Archbishop Jaime Cardinal Sin who prodded Filipinos to unite in “people power” and help protect the rebel soldiers inside Camps Aguinaldo and Crame along EDSA during those fateful days.
After the Marcos ouster during the EDSA-1, the Jacinto-owned companies were among the sequestered private business empires that were subsequently returned to their respective owners when the late president Corazon Aquino took office at Malacañang. And these also included the Lopez-owned companies like the Meralco, the ABS-CBN TV network etc. And the rest, as we say, is history.
Fast forward. Incumbent Speaker Alan Peter Cayetano has come out publicly that they intend to pass upon the ABS-CBN franchise bill. Although the franchise of the network is ending this March 30, Cayetano was quoted saying “objectively” the Lower House could only take it up by August this year when they are able to clear the legislative mills with approval of the more priority bills.
On the other hand, Senate president Vicente Sotto III clarified the Senate committee on public services chaired by Sen. Grace Poe will conduct today their public hearing on the proposed bill on the amendments of the Public Services Law under Commonwealth Act No.146, and that ABS-CBN franchise issue falls under that concern.
Hence, Sotto explained, the Senate public hearing will not touch on the approval of franchise renewal of the ABS-CBN that is still pending at the Lower House. Neither, the Senate will commit sub judice on the quo warranto petition filed by the Office of the Solicitor General two weeks ago before the Supreme Court against the alleged franchise violations of ABS-CBN.
Meanwhile, TV-movie stars and other popular personalities have been holding their own “people power” candlelight rallies for press freedom at ABS-CBN headquarters at Mother Ignacia St. in Quezon City to dramatize the importance of extending the network’s franchise bill.
https://www.philstar.com/opinion/2020/02/24/1995524/people-power-press-freedom
But as of October last year, The STAR counted as many as 17 bills that President Duterte allowed to lapse into law out of 170 the total of legislative measures enacted during the last five months of the 17th Congress. The Chief Executive chose not to sign franchise bills for the 16 broadcasting and telecommunications entities and just let them lapsed into law.
The TV5 and CBCP Network automatically got their franchises renewed last year after their respective bills lapsed into laws in April. The laws that covered the renewal of TV5 and CBCP were released by Malacañang without the signature of the President only in July of the same year. The two Congress-approved bills merely bore the official stamp of the Office of the President certifying each has lapsed into law.
No explanation was given by Malacañang as to why the President didn’t sign the bills and let it lapsed into law.
The President’s explanation is not mandatory though. For a approved or vetoed Congress-approved legislation, however, normally an explanation why the President rejected it is attached to the enrolled bill.
Unfortunately for ABS-CBN, its franchise bill remains pending before the 18th Congress. Actually, the Kapamilya network’s franchise renewal bill has been stalled since 2016 when this was first filed in the 17th Congress. Its rival network GMA-7 also had a franchise renewal bill that got signed into on the next year.
On July 23, 2019, Nueva Ecija 2nd District Rep. Micaela Violago refiled the bill that will extend ABS-CBN’s franchise for another 25 years. There are 10 other bills authored by different Congressmen on the ABS-CBN franchise renewal pending at the House committee on public services chaired by Palawan Rep. Franz Alvarez.
And also, under our 1987 Constitution, all franchise bills must emanate from the House of Representatives.
The presidential pique against ABS-CBN started when the former Davao City Mayor first complained about the network’s not airing his political ad during the 2016 election campaign but did not allegedly refund the payment for the unaired TV ad.
Allegedly due to President Duterte’s public pronouncements against the Lopez-owned TV-radio-cable network, the ABS-CBN franchise bill was not acted upon during the 17th Congress composed largely of pro-administration lawmakers. Headed by then Speaker and Davao Rep. Pantaleon Alvarez, chief ally of Mayor Duterte, House members were reportedly issued marching orders not to touch the ABS-CBN franchise bill.
But while President Duterte has vowed not to sign into law franchise renewal of the ABS-CBN, take note the Chief Executive has never uttered any declarative statement: “I will approve or veto it.”
One of the ten companies that got their signed franchise bill signed into law last year by President Duterte is owned by erstwhile businessman Ramon Jacinto. A campaign supporter of the former Davao City Mayor, he was appointed as presidential adviser on telecom. Signed under Republic Act (RA) No. 11414, the franchise of the Jacinto family-owned Rajah Broadcasting Network TV-radio station will continue for another 25 years. Incidentally, Jacinto’s radio station, which runs on frequency modulation DzRJ-FM, played an important role during the 1986 People Power Revolution, or EDSA-1 for brevity’s sake.
As we mark the 34th anniversary of EDSA-1 this week, we pause to remember the heroics of the late TV personality June Keithley who used the government-sequestered RJ-FM facility from its office and tower station atop the Jacinto-owned J & T Building in Sta. Mesa, Manila and turned it into “Radyo Bandido.” Keithley repeatedly aired the taped message of the late Manila Archbishop Jaime Cardinal Sin who prodded Filipinos to unite in “people power” and help protect the rebel soldiers inside Camps Aguinaldo and Crame along EDSA during those fateful days.
After the Marcos ouster during the EDSA-1, the Jacinto-owned companies were among the sequestered private business empires that were subsequently returned to their respective owners when the late president Corazon Aquino took office at Malacañang. And these also included the Lopez-owned companies like the Meralco, the ABS-CBN TV network etc. And the rest, as we say, is history.
Fast forward. Incumbent Speaker Alan Peter Cayetano has come out publicly that they intend to pass upon the ABS-CBN franchise bill. Although the franchise of the network is ending this March 30, Cayetano was quoted saying “objectively” the Lower House could only take it up by August this year when they are able to clear the legislative mills with approval of the more priority bills.
On the other hand, Senate president Vicente Sotto III clarified the Senate committee on public services chaired by Sen. Grace Poe will conduct today their public hearing on the proposed bill on the amendments of the Public Services Law under Commonwealth Act No.146, and that ABS-CBN franchise issue falls under that concern.
Hence, Sotto explained, the Senate public hearing will not touch on the approval of franchise renewal of the ABS-CBN that is still pending at the Lower House. Neither, the Senate will commit sub judice on the quo warranto petition filed by the Office of the Solicitor General two weeks ago before the Supreme Court against the alleged franchise violations of ABS-CBN.
Meanwhile, TV-movie stars and other popular personalities have been holding their own “people power” candlelight rallies for press freedom at ABS-CBN headquarters at Mother Ignacia St. in Quezon City to dramatize the importance of extending the network’s franchise bill.
https://www.philstar.com/opinion/2020/02/24/1995524/people-power-press-freedom
Senators probe ABS-CBN franchise as Calida moves for network’s shutdown
ABS-CBN network executives are set to appear before a Senate committee on Monday in a highly anticipated hearing seen as a pushback on the Philippine government’s move to close down the country’s largest media network, as congressmen continue to sit on proposals to renew its broadcast franchise.
The inquiry is scheduled on the same day the network is due to respond to Solicitor General Jose Calida’s quo warranto petition to take it off the air for supposed franchise violations.
The Supreme Court also gave ABS-CBN until Monday to answer Calida’s “very urgent motion” to gag the network and “persons acting on (its) behalf,” a sweeping plea that media and human rights groups described as an assault on press freedom.
“Revoking or not renewing a broadcast franchise becomes a different matter altogether because that constitutes an infringement of the first-ranked democratic freedom — freedom of expression,” said journalist Vergel Santos, former chairman of the Center for Media Freedom and Responsibility.
Malacañang has distanced President Duterte from the petition of Calida, who serves as the government’s top lawyer.
Duterte earlier promised to “make sure” that ABS-CBN would be out of broadcast, citing complaints over its coverage of his administration and unaired political ads in 2016. He later told its owners to “just sell” the business.
Calida has been invited to Monday’s public services committee’s hearing where he’s expected to be questioned on his Supreme Court petition to invalidate ABS-CBN’s existing franchise.
Several House leaders have criticized his quo warranto petition, insisting that Congress has the exclusive power to grant, repeal or renew franchises.
Sen. Grace Poe admitted that Calida’s gag order motion prompted her public services committee to push the hearing ahead of schedule “to be on the safe side.”
“That way, there’s no conflict and the resource persons won’t be apprehensive about giving their statements,” she told ABS-CBN News.
NO PRESSURE
Poe said the inquiry was not meant to pressure the House of Representatives to act on at least 11 ABS-CBN bills still stuck in its committee on legislative franchises.
The network’s franchise will expire on March 30 but Speaker Alan Peter Cayetano said deliberations were “not that urgent,” insisting the network could still operate until March 2022.
Cagayan De Oro Rep. Rufus Rodriguez on Sunday said Cayetano should now green-light deliberations on ABS-CBN’s franchise renewal, saying “we are left behind because we do not act.”
Rodriguez, an administration congressman pushing for a fresh 25-year franchise for ABS-CBN, insisted that the House would not be “susceptible to any pressure from anybody, not even the Senate.”
But he was convinced that the Senate hearing was “being done precisely to tell the whole world that what Calida has done is not correct.”
“Since the Senate is a part of Congress, it has all the right to really hear it and tell Calida that it is not a proper thing for him to file that (quo warranto petition) in the Supreme Court,” Rodriguez told ABS-CBN News on Sunday.
REST EASY
Poe said the hearing was meant to clarify if ABS-CBN could still operate after March 30, an assurance earlier given by Cayetano and Senate President Vicente Sotto III as a matter of practice over pending franchise renewal applications.
“We’re not pressuring the House,” she said, noting that an extension put on paper would put pressure off Congress to act on the franchise renewal application before next month’s deadline.
A commitment from the National Telecommunications Commission for an extension would also mean that the 11,000 workers of ABS-CBN Corp. and its subsidiaries “can rest easy,” she said.
As of Sunday afternoon, she said Calida was yet to confirm his attendance. But Justice Secretary Menardo Guevarra and NTC Commissioner Gamaliel Cordoba had both informed the committee that they would show up.
Poe described Calida’s presence in the hearing as “crucial,” citing his objections to ABS-CBN’s franchise renewal.
ABUSES
Calida’s alleged that ABS-CBN Corp. “abused” its free-TV franchise by introducing the pay-per-view feature Kapamilya Box Office (KBO) without NTC approval.
“This warrants the revocation of ABS-CBN Corp.’s legislative franchise,” he said in his petition.
ABS-CBN replied in a statement: “All our broadcast offerings, including KBO, have received the necessary government and regulatory approvals and are not prohibited by our franchise.”
The KBO feature allows subscribers to watch select movies for a fee of P30 or P99.
Calida also claimed that ABS-CBN Corp. violated the constitutional ban on foreign ownership in mass media by issuing Philippine Depositary Receipts (PDRs) to foreigners through ABS-CBN Holdings.
Foreigners may buy into PDRs and may be entitled to dividends. But they are not considered shareholders with voting rights in a company.
A former Philippine Stock Exchange president likened it to betting on a horse in a race where a person gets a share of the winnings without necessarily owning the triumphant horse.
What are PDRs? Ex-stock exchange chief says it's like betting on a horse
LAYERING
Calida also accused ABS-CBN Convergence Inc., ABS-CBN’s telecommunications subsidiary, of violating the law by making use of the original franchise of the company it had acquired without congressional approval, using an “intricate web of corporate layering.”
“The government is being hoodwinked as it is made to believe that the finite and limited spectrum had been allocated to those that are worthy to be accorded the privilege, when in truth, it is only being utilized by one corporation, ABS-CBN,” he said.
The subsidiary’s failure to publicly offer at least 30 percent of its outstanding capital stock within 5 years since its operations began was also a ground to have its franchise revoked, he said.
In a statement, ABS-CBN Corp. said the acquisition of ABS-CBN Convergence was “undertaken under the same law and structures that have been utilized by other telecommunications companies.”
https://news.abs-cbn.com/news/02/23/20/senators-probe-abs-cbn-franchise-as-calida-moves-for-networks-shutdown
The inquiry is scheduled on the same day the network is due to respond to Solicitor General Jose Calida’s quo warranto petition to take it off the air for supposed franchise violations.
The Supreme Court also gave ABS-CBN until Monday to answer Calida’s “very urgent motion” to gag the network and “persons acting on (its) behalf,” a sweeping plea that media and human rights groups described as an assault on press freedom.
“Revoking or not renewing a broadcast franchise becomes a different matter altogether because that constitutes an infringement of the first-ranked democratic freedom — freedom of expression,” said journalist Vergel Santos, former chairman of the Center for Media Freedom and Responsibility.
Malacañang has distanced President Duterte from the petition of Calida, who serves as the government’s top lawyer.
Duterte earlier promised to “make sure” that ABS-CBN would be out of broadcast, citing complaints over its coverage of his administration and unaired political ads in 2016. He later told its owners to “just sell” the business.
Calida has been invited to Monday’s public services committee’s hearing where he’s expected to be questioned on his Supreme Court petition to invalidate ABS-CBN’s existing franchise.
Several House leaders have criticized his quo warranto petition, insisting that Congress has the exclusive power to grant, repeal or renew franchises.
Sen. Grace Poe admitted that Calida’s gag order motion prompted her public services committee to push the hearing ahead of schedule “to be on the safe side.”
“That way, there’s no conflict and the resource persons won’t be apprehensive about giving their statements,” she told ABS-CBN News.
NO PRESSURE
Poe said the inquiry was not meant to pressure the House of Representatives to act on at least 11 ABS-CBN bills still stuck in its committee on legislative franchises.
The network’s franchise will expire on March 30 but Speaker Alan Peter Cayetano said deliberations were “not that urgent,” insisting the network could still operate until March 2022.
Cagayan De Oro Rep. Rufus Rodriguez on Sunday said Cayetano should now green-light deliberations on ABS-CBN’s franchise renewal, saying “we are left behind because we do not act.”
Rodriguez, an administration congressman pushing for a fresh 25-year franchise for ABS-CBN, insisted that the House would not be “susceptible to any pressure from anybody, not even the Senate.”
But he was convinced that the Senate hearing was “being done precisely to tell the whole world that what Calida has done is not correct.”
“Since the Senate is a part of Congress, it has all the right to really hear it and tell Calida that it is not a proper thing for him to file that (quo warranto petition) in the Supreme Court,” Rodriguez told ABS-CBN News on Sunday.
REST EASY
Poe said the hearing was meant to clarify if ABS-CBN could still operate after March 30, an assurance earlier given by Cayetano and Senate President Vicente Sotto III as a matter of practice over pending franchise renewal applications.
“We’re not pressuring the House,” she said, noting that an extension put on paper would put pressure off Congress to act on the franchise renewal application before next month’s deadline.
A commitment from the National Telecommunications Commission for an extension would also mean that the 11,000 workers of ABS-CBN Corp. and its subsidiaries “can rest easy,” she said.
As of Sunday afternoon, she said Calida was yet to confirm his attendance. But Justice Secretary Menardo Guevarra and NTC Commissioner Gamaliel Cordoba had both informed the committee that they would show up.
Poe described Calida’s presence in the hearing as “crucial,” citing his objections to ABS-CBN’s franchise renewal.
ABUSES
Calida’s alleged that ABS-CBN Corp. “abused” its free-TV franchise by introducing the pay-per-view feature Kapamilya Box Office (KBO) without NTC approval.
“This warrants the revocation of ABS-CBN Corp.’s legislative franchise,” he said in his petition.
ABS-CBN replied in a statement: “All our broadcast offerings, including KBO, have received the necessary government and regulatory approvals and are not prohibited by our franchise.”
The KBO feature allows subscribers to watch select movies for a fee of P30 or P99.
Calida also claimed that ABS-CBN Corp. violated the constitutional ban on foreign ownership in mass media by issuing Philippine Depositary Receipts (PDRs) to foreigners through ABS-CBN Holdings.
Foreigners may buy into PDRs and may be entitled to dividends. But they are not considered shareholders with voting rights in a company.
A former Philippine Stock Exchange president likened it to betting on a horse in a race where a person gets a share of the winnings without necessarily owning the triumphant horse.
What are PDRs? Ex-stock exchange chief says it's like betting on a horse
LAYERING
Calida also accused ABS-CBN Convergence Inc., ABS-CBN’s telecommunications subsidiary, of violating the law by making use of the original franchise of the company it had acquired without congressional approval, using an “intricate web of corporate layering.”
“The government is being hoodwinked as it is made to believe that the finite and limited spectrum had been allocated to those that are worthy to be accorded the privilege, when in truth, it is only being utilized by one corporation, ABS-CBN,” he said.
The subsidiary’s failure to publicly offer at least 30 percent of its outstanding capital stock within 5 years since its operations began was also a ground to have its franchise revoked, he said.
In a statement, ABS-CBN Corp. said the acquisition of ABS-CBN Convergence was “undertaken under the same law and structures that have been utilized by other telecommunications companies.”
https://news.abs-cbn.com/news/02/23/20/senators-probe-abs-cbn-franchise-as-calida-moves-for-networks-shutdown
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