Friday, May 8, 2020

Possible contempt hounds NTC as Senate vows swift action on ABS-CBN franchise

While one senator says Senate will “not waste a moment” in acting on the franchise renewal of ABS-CBN, another is looking at the possibility of citing the National Telecommunications Commission (NTC) in contempt for backtracking on its earlier pronouncements.

Senator Grace Poe, who chairs the Senate committee on public services, said that the Senate will “not waste a moment” in tackling ABS-CBN’s bid to have its franchise renewed once it reaches the upper chamber.

“The Filipino people want to see the network back on air. To see is to believe,” Poe said in a statement.

“As Senate President Sotto vowed, the Senate will not waste a moment once the bill reaches the chamber, as this matter is imbued with public interest,” the senator added.

Poe made the remark after House Speaker Alan Peter Cayetano said that Congress “has no choice but to once again rise to the occasion and fix the mess others make.”

Sotto earlier said the Senate will approve ABS-CBN’s bid for franchise renewal.

“ABS Franchise, bring it to the Senate, we will approve it!” Sotto said in a tweet.

Meanwhile, Senator Sherwin Gatchalian said that the NTC’s move to backtrack on its earlier pronouncement to grant ABS-CBN a provisional authority to operate could serve as a ground to have it cited for contempt.

“That’s why we are quite surprised and it can be a justification for contempt because at that point in time, he gave us a statement that we held and we used to guide us in our decision-making,” Gatchalian said in an interview.

Gatchalian recalled that NTC Commissioner Gamaliel Cordoba made a verbal commitment after getting the legal opinion of Justice Secretary Menardo Guevarra allowing ABS-CBN to operate while its franchise renewal bid is pending in Congress.

“Hindi ko makalimutan because that was the point of contention at that time. He (Cordoba) was relieved ang sabi niya, oh andito na pala ang DOJ, meron nang justification, therefore, we can issue a provisional authority,” Gatchalian said.

“That statement is a very important statement because that guided us the senators and also Congress in terms of how to approach this franchise and what process will we have to take in order to approve that franchise,” he added.

In the same light, Palawan 1st District Rep. Franz Alvarez, who chairs the House committee on legislative franchises, earlier said the NTC may be held for contempt for backtracking on its commitment to issue ABS-CBN a provisional authority.

“Posible po. On record sila, under oath sila nung sinabi na sila ay magi-issue ng provisional authority kaya gusto nating malaman, anong nangyari at bakim sila biglang nagbacktrack?” Alvarez said in a radio interview when asked if NTC’s order for ABS-CBN to stop its broadcast operations could serve as a basis for contempt.

Meanwhile, Senator Leila de Lima slammed presidential spokesperson Harry Roque’s remark that President Rodrigo Duterte is “neutral” on the issue of ABS-CBN.

“‘Neutral’ lang daw si Duterte? This bully President not lifting a finger this time? Not even counter-manding either [Solicitor General Jose] Calida or NTC, which is perfectly within his powers to do? Duterte’s hypocritical stance of neutrality is so much of an insult to our intelligence,” De Lima said.

“Many times, we have been lied to and manipulated by, this President. And, each time, we let him get away with it. That is our national tragedy,” she added.

/MUF

https://newsinfo.inquirer.net/1271882/possible-contempt-hounds-ntc-as-senate-vows-swift-action-on-abs-cbn-franchise

ABS-CBN losing P35 million per day as it goes off-air

ABS-CBN tells the Supreme Court it may also not be able to service its debts as it halts operations

ABS-CBN is losing around P30 million to P35 million every day that it is off the air.

In its petition for certiorari filed before the Supreme Court on Thursday, May 7, the media giant said its immediate losses, equivalent to over P1 billion a month, would be due to lack of advertising revenues. (READ: ABS-CBN to Supreme Court: NTC shutdown violates press freedom)

ABS-CBN added that it would incur a lot more and may not be able to service its debts.

“Because of the CDO (cease and desist order), ABS-CBN will not be able to service its debts, and this would constrain its creditors to require collateral for its loans,” ABS-CBN said.

“ABS-CBN has, in fact, already received a notice from a bank demanding such collateral. Its credit lines and letters of credit had already been adversely affected, thereby seriously hampering activities which require such financing,” it added.

ABS-CBN's financial problems come at a time when most Philippine businesses are bleeding cash amid the coronavirus crisis.

Due to the National Telecommunication Commission's order, ABS-CBN was forced to move some of its programs to its other platforms like Facebook and The Filipino Channel, as airing there do not require a congressional franchise.

The network added that the “injury” inflicted by the NTC's order may be “irreparable” and the network may not be able to recover from the losses.

ABS-CBN’s chief financial officer Ricardo Tan Jr earlier told the Inquirer that it will honor its debts.

“We have been in touch with our creditors and also assured them that we will be servicing all our debts according to the existing payment schedules,” Tan said in the article.

From January to September 2019, ABS-CBN’s net income stood at P2.36 billion, 45% higher year-on-year on the back of higher revenues of P32 billion.

Over half of the revenues came from advertising, which amounted to P17.11 billion.

As of the 3rd quarter of 2019, ABS-CBN’s long term debts to banks amounted to P21.2 billion, P259 million of which is due in 2020.

Despite the massive blow to its finances, ABS-CBN chief executive officer Carlo Katigbak committed to pay all of its 11,000 workers for the next 3 months and assured employees no one will be let go. This was confirmed by several news personalities and employees in various social media posts, as well as confirmation to Rappler.

Tthe Philippine Stock Exchange suspended trading of ABS-CBN shares following the NTC order.

The NTC ordered ABS-CBN to cease operations on Tuesday, May 5, as its franchise expired the day before. The NTC had promised in March that it would grant the network provisional authority to operate while Congress deliberated on bills seeking an ABS-CBN franchise renewal.

There were at least 9 bills pending in Congress for the media network's franchise renewal.

Speaker Alan Peter Cayetano, who has been blamed for the ABS-CBN shutdown because he had shelved the bills, on Friday pointed to Solicitor General Jose Calida and the NTC instead.

Two days before the NTC order, Calida warned it against granting ABS-CBN provisional authority to operate while the renewal of its franchise is pending in Congress. Calida had filed a quo warranto petition in February, seeking to stop ABS-CBN's operations.

The shutdown on May 5 has been met with criticism, with rights groups, media workers, labor groups, and lawmakers denouncing the move as abuse of power and a threat to press freedom.

President Rodrigo Duterte has repeatedly slammed the network over alleged swindling and unfair election coverage, and had said that he would see to it that ABS-CBN would not get a franchise renewal.

https://www.rappler.com/business/260298-abs-cbn-losing-millions-per-day-off-air

Cayetano not blameless on ABS-CBN shutdown — Lagman

There’s no way that Speaker Alan Peter Cayetano could clear himself of the blame on the shutdown of ABS-CBN amid the National Telecommunications Commission’s (NTC) cease and desist order, an opposition solon said Friday.

Albay Rep. Edcel Lagman made the remark after Cayetano broke his silence and slammed the “sudden flip-flopping” of the NTC and the “unconstitutional meddling” by Solicitor General Jose Calida on the regulatory body’s grant of provisional authority to operate to ABS-CBN, pending the approval of its franchise by congress.

In his first statement since the shutdown, Cayetano said that Congress “has no choice but to once again rise to the occasion and fix the mess others make.”

But Lagman was quick to call out the House leader, saying it was his inaction on the pending franchise renewal bills that had created the mess.

“It is utterly pretentious for Speaker Alan Peter Cayetano to say that the passage of the franchise renewal will now be prioritized in order to ‘fix the mess’ which others made… Cayetano must not wash his hands and absolve himself of blame at the expense of others,” said Lagman in a statement.

“Cayetano himself made the mess by blindly kowtowing to President Rodrigo Duterte’s repeated personal opposition to the renewal which unduly stalled the approval of the extension,” he added.

Lagman has been vocal with his stand that House should take the blame for ABS-CBN’s shutdown.

At one point, Lagman even said the NTC should not be used as a “scapegoat” for the failure of the House leadership to renew ABS-CBN’s franchise.

“Moreover, Cayetano cited his own personal grievances against ABS-CBN to justify his temporizing on the consideration of the 12 pending bills (including for ABS-CBN Convergence Inc.) for renewal,” Lagman said.

“Cayetano must not wash his hands and absolve himself of blame at the expense of others. Admitting one’s fault is an earmark of true leadership,” the lawmaker added.

Despite this, Lagman said that the leadership of the lower chamber can still redeem itself by fast-tracking the approval of ABS-CBN’s franchise.

“The leadership of the House of Representatives can redeem itself of its culpability in the ABS-CBN franchise fiasco by immediately fast-tracking the renewal of the giant network’s franchise,” Lagman said.

ABS-CBN has asked the Supreme Court to temporarily stop the implementation of the cease and desist order issued by the NTC which directed the network to stop its broadcast operations.

But if Congress will immediately approve ABS-CBN’s bid for a franchise renewal, this petition will just be moot, said Lagman.

“A swift congressional action extending ABS-CBN’s franchise for another 25 years will render moot and academic the network’s petition before the Supreme Court to revoke the cease and desist order (CDO) issued by the National Telecommunications Commission on May 5, 2020, which ABS-CBN complied with on the same day,” Lagman said.

“The renewal of the franchise will also foreclose the need for the High Court to issue a temporary restraining order (TRO) against NTC’s CDO so that the network can resume operations even as such franchise renewal will quash the controversial CDO,” he added.

https://newsinfo.inquirer.net/1271798/fwd-lagman-cayetano-must-not-wash-his-hands-and-absolve-himself-of-blame-at-others-expense

Grant of franchise is not ministerial

The grant of franchise to corporations is not something owners can demand. Franchise presupposes that corporations are public utilities often referred to as public-service corporations much that they provide essential services such as electricity, telephone service, telecommunications, natural gas, water or postal services. They are regulated because they embody public interest.

This explains why franchise is not a right owners can demand synonymous to property right but a privileged that can be granted or withheld by reason of public safety, security and public order. Equivocally, without a franchise, such corporations cannot operate.

The problem with ABS-CBN is to this day it has not detached itself from its involvement in politics. Often the company’s political inclination is dependent on the attitude of the owners as former caciques that enjoyed the status of "sugar baron" brought about by the creation of big sugar plantations during the colonial economic period.

Despite the withering of this exclusive class in 1974, they insist in perpetuating their economic dominance amidst the rumblings in Philippine politics. The Lopezes to this day still hallucinate they control and dictate the political destiny of this nation.

Their latest foray was when they swindled Duterte the amount he paid for his political advertisement in the 2016 campaign. The owners probably wanted to hit Digong twice by swindling him and by humiliating him to make sure he loses in the election.

They gravely committed an incalculable mistake. Duterte won and that complicated their problem. It was reminiscent of their support for Marcos to pin down Macapagal for devaluating the currency that caused their loan to bloat. Today Digong may not have the character of an Ilocano but has the memory of an elephant one could not easily forget.

Their predicament became complicated because they dared to cross his path believing that what they did was a trivial matter. They took the issue of renewal of franchise as something they could easily manage. Instead of examining the problem and making an open apology to the President, the Lopezes relied on their usual high and mighty attitude of leaving it to their lawyers, confident that things will ultimately be resolved their own way.

Up to now still they nurture the same delusion of being the top political kingmaker with the old man even boasting that nobody sits in Malacanang without his blessing. It is this shameless clan that is today daring the President to close their business; that when the bell finally tolled on them they could not believe it that the National Telecommunications Commission would issue a cease and desist order or closure order, in short.

ABS-CBN could not believe their stable of politicians loyal to them could be outwitted by Jose Calida. Their battery of lawyers, as usual, were banking on the petition for quo warranto have it dribble in court that by the circumstance of “force majeure” compel it to issue a temporary or provisional franchise until the court finally decides for or against the renewal of franchise, and from there they could deny Congress of its right under to issue franchise under Section 11, Article 11 of the Constitution arguing as usual that the Court have already acquired jurisdiction over the case.

But Calida was fully aware that by May 4, the franchise of the Station would expire, and the case he filed which listed the numerous violations of the franchise would automatically become functus oficio, meaning there is nothing more to be remove, the franchise having ceased to exist in fact and in law. ABS-CBN was not only startled but is now completely at a loss. I cannot now operate because it does not have a franchise or can it blame NTC NTC for doing its duty to issue cease and desist order. On top of it the Lopezes cannot go to court for the issuance of temporary restraining order, as suggested by retired Justice Antonio Carpio, for the simple reason the petition was not decided by the court by due to its own negligence in allowing the franchise to expire.

ABS-CBN cannot even now rely on its usual supporters they hope to exploit in the event of a showdown with the administration. At most, ABS-CBN can only blame Congress for sitting on its application for renewal since 2014. But is a complicated issue. They cannot even blame the membership of the present Congress but on the former President and the former speaker Feliciano Belmonte which the general public thought to ardent fans of ABS-CBN. This is the point that caused the franchise to be stalled, and the station would not openly admit this fact for that could equivocally absolve the President from being blamed for the fiasco but upon themselves why the franchise expired by operation of law.

Renewing the franchise of ABS-CBN would not solve the problem endemic to the administration. The owners have always resorted to influence peddling to exact huge financial favors from the government.

The Lopez clan entertains the illusion that Duterte does not have the nerve to close ABS-CBN. They could not even decipher that the President just want to collect the P6.5 billion that remains unpaid. It is this attitude of acting as carpetbaggers, treating government-owned corporations as acquired by them in a fire sale, and often on installment basis that irked the President so much.

What if the Duterte government decides to sell ABS-CBN? Would its disposition not put to an end the agony of the government in kowtowing to a corporation that could hardly pay its debt while continually slandering it? Can the owner prohibit the government from disposing that property and concoct their alibi it was confiscated from them? Can the Duterte government not sell the properties of his political enemies for unpaid loan?

Of course, some skunk lawyers would always say, a buyer allowed to operate ABS-CBN is a buyer in bad faith. But between those buyers in good faith against one who has been delinquent in his payment, which between the two now stand to have acted in bad faith? A buyer in good faith in this situation can also pay in full the arrears of the corporation. The owners cannot claim their right as franchisee because the sale is likely to take place after the franchise has expired.

First, the government can immediately recover the long overdue account upon payment by the buyer. The fund is much needed now because of the pandemic. The Lopezes can no longer cling on to a franchise that no longer exists.

Second, the sale of ABS-CBN will finally resolve the bogus democracy the Lopezes have been dangling to the Filipino people. The oligarch that owns and controls the station made a mockery of our democracy. They often drumbeat freedom of the press but in truth is used to bullshit the government.

Third, they contribute to retard public opinion and as cover to advance their economic and political interest. Their ownership of the biggest private radio and television station does not speak of the truth. Rather, they usurp that right to mislead our people.

Fourth, ABS-CBN has become the secondary and alternate news outlet for CNN, Voice of America, Fox News and BBC using local stations, channel and frequency to make them more powerful than the one operated by our government.

Fifth, ABS-CBN together with those foreign media organizations does not only compete with the government radio and television stations like PBS, but openly gang up on the government branding the state media as brazenly corrupt and human rights violator.

Sixth, ABS-CBN often coordinates with foreign media on issues to place the government on the defensive. If the subject is between the government and the communist rebels, ABS-CBN in collaboration with foreign media in pursuit of their country’s national interest unite against the government. Our people are confused for it seems ABS-CBN and the foreign media find themselves one in defending those identified as enemies of the state with a wider leeway to hide behind the cloak press freedom or in upholding human rights.

Seventh, the sale of ABS-CBN is proper. The Lopezes cannot claim the value of the franchise or good will to jack up their price because the business already ceased to exist. The seller could only sell the property after deducting the amount due to the government.

Eighth, the government did not sequester the property like what the defunct PCGG did but as unpaid creditor having acquired the right to sell the property with the right to collect the balance.

Ninth, the buyer could operate the station after a new franchise is granted with the promise to rehire all the employees of the old station.

Because of the prosaic interpretation of freedom, our local media can freely coagulate other foreign media organizations resulting in our inability to determine what is truly democratic and what truly represents our people’s interest.

rpkapunan@gmail.com

Binibining Pilipinas, beauty queens condemn ABS-CBN shutdown

Binibining Pilipinas Charities Inc. (BPCI) expressed dismay over the recent signing-off of the Philippines' biggest TV network, ABS-CBN, following the National Telecommunications Commission's (NTC) cease and desist order.


In a statement sent to Philstar.com, BPCI said the pageant organizer and ABS-CBN "have been valuable partners for many years. The Kapamilya network is instrumental in echoing our mission to promote peace and love across the nation, and has helped provide a platform that allows us to provide young Filipinas the opportunity to be carriers our our message."


"We express our support to our Kapamilyas affected by the network's closure and hope that this issue will be resolved soon," BPCI concluded its statement also posted on its official Facebook page.


BPCI aired its Binibining Pilipinas beauty pageant in recent years on ABS-CBN.


Due to the enhanced community quarantine, this year's coronation night is still on hold, but the 40 official candidates continue to participate in online pre-pageant activities such as the recent makeup challenge.


Meanwhile, Miss Universe 2018 Catriona Gray and Miss Universe 2015 Pia Wurtzbach, who were crowned as Miss Universe Philippines when the pageant was still under BPCI, also showed support for the TV network where they signed up as contract artists.


"As we face this global pandemic as a nation, fast and accessible information is key to saving lives. By silencing voices we’re doing a disservice to our countrymen who need it most. At a time in our history when we should be remembered for how we all came together to serve each other. When we look back, what will be remembered instead? #NoToABSCBNShutdown," Catriona said in her post.


"ABSCBN holds a dear place in my heart. I spent most of my teenage years in the halls of ABSCBN, attending workshops, doing rehearsals, tapings and even attending classes (They had a high school a few years back and I graduated there) ABSCBN was a home for me. It is also home to 11,000 employees and is in the homes of almost every Filipino family," Pia said in an Instagram post.


"To my ABSCBN family, I stand by you. I am still hopeful that all of this is just a challenge. Maayos rin ang lahat," she assured her home network.


https://www.philstar.com/entertainment/2020/05/08/2012671/binibining-pilipinas-beauty-queens-condemn-abs-cbn-shutdown