Friday, July 10, 2020

Lawmakers vote to shut down Philippines' largest TV network

MANILA, Philippines — Philippine lawmakers voted Friday to reject the license renewal of the country’s largest TV network, shutting down a major news provider that had been repeatedly threatened by the president over its critical coverage.

The House of Representatives’ Committee on Franchises voted 70-11 to reject a new 25-year license for ABS-CBN Corp. The National Telecommunications Commission had ordered the broadcaster to shut down in May after its old franchise expired. It halted broadcasting then, but the vote takes it off the air permanently.

Only the House of Representatives, which is dominated by President Rodrigo Duterte’s allies, can grant such franchises and the chance of any reversal of Friday’s vote is extremely low, lawmakers said.

The network, which used to be viewed by millions of Filipinos on free TV, has been able to continue broadcasting some of its TV and radio news programs over paid cable channels, but with a small fraction of its former viewership.

“We are deeply hurt,” ABS-CBN President and CEO Carlo Katigbak said, but he suggested the company will try to find other ways to return to business.

“Together with our employees and our audiences all over the world, we share in your sadness over this setback,” Katigbak said. “We look forward to the day when we can again reunite.”

In the network’s newsroom, journalists hugged each other and wept. “We lost our voice,” Irish Vidal, a news staffer, said in tears. Outside its headquarters, journalists and TV and movie celebrities lit candles and held protest placards.

Duterte and his allies had questioned the network’s compliance with the law and the terms of its franchise, including its alleged use of a dummy corporation and large numbers of non-regular workers without employment security. The company denied any wrongdoing in a dozen televised House hearings.

International media watchdogs condemned the closure of ABS-CBN, which was founded in 1953, as a major blow to press freedom.

Human Rights Watch said the lawmakers’ vote was “a grievous assault on press freedom in the country” and the greatest blow to media freedom caused by any government act since late dictator Ferdinand Marcos shut the broadcasting giant and other media outlets after declaring martial law in 1972.

“This move solidifies the tyranny of President Rodrigo Duterte,” said Phil Robertson, the deputy Asia director of the U.S.-based rights group.

Reflecting the extent of unease over the network’s shutdown, both the opposition and several key Duterte allies questioned efforts to close it. Concerns have also been raised by a diverse range of groups, including top business executives, left-wing activists and Catholic Church officials.

ABS-CBN has more than 11,000 news and production personnel nationwide. Aside from reporting on the coronavirus, which has infected more than 50,000 people and killed 1,314 in the Philippines, it has provided food and medical aid to more than 2 million people, company officials said.

Watchdogs accuse Duterte and his government of muzzling independent media such as ABS-CBN that have reported critically on issues including his anti-drug crackdown, which has left thousands of mostly poor drug suspects dead. Duterte has accused the network of not airing his paid campaign ads and favouring a rival candidate in the 2016 election, allegations the company denied.

Other critical media, including leading newspaper the Philippine Daily Inquirer and Rappler, an online news site, have also come under attack from the president.

Presidential spokesman Harry Roque said Duterte took a neutral position on ABS-CBN’s franchise renewal and left it to Congress to decide.

But ahead of the franchise expiration, the government’s solicitor-general, Jose Calida, asked the Supreme Court in February to revoke the franchises of ABS-CBN and a subsidiary in a separate attempt to shut the company for allegedly abusing its franchises and violating a constitutional prohibition on foreign investment in Philippine media.

ABS-CBN denied the allegations. The high court eventually dismissed the petition.

Philippines top broadcaster ABS-CBN denied new licence

One of the Philippines' largest broadcasters, ABS-CBN, has been refused a new licence after being forced off air in May.

On Friday, an overwhelming majority of a parliamentary committee rejected as "undeserving" ABS-CBN's request for a 25-year extension of its franchise.

Government critics say the refusal is directly connected to the channel's criticism of President Rodrigo Duterte.

ABS-CBN refused to broadcast Mr Duterte's campaign ads in 2016.

The broadcaster, which operates dozens of radio and TV stations, was first taken off air on 4 May its broadcast licence expired.

Ahead of the vote on its renewal application, pictures on social media showed supporters of the network outside Congress holding up posters proclaiming "Defend Press Freedom" and "Stop The Attacks".

"This is a black day for media freedom in a country previously regarded as a bastion of press freedom and democracy in the region," Phil Robertson, deputy Asia director of Human Rights Watch, said on Friday.

"Today's vote to deny the franchise renewal is an astounding display of obsequious behaviour by Congressional representatives, kowtowing to Duterte by agreeing to seriously limit media freedom in the Philippines," he said.

Opposition lawmakers say the suspension also undermines the fight against the coronavirus outbreak, which has infected more than 50,000 people in the country and killed more than 1,300.

ABS-CBN regularly reached more than 15 million homes on TV, radio and online. Founded in 1946, the media conglomerate employs some 11,000 people.

It can appeal against Friday's decision.

While freedom of the press is guaranteed under the constitution, the Philippines is one of the most dangerous places in the world for journalists, according to the US-based charity Freedom House.

And according to press freedom group Reporters Without Borders, "Private militias, often hired by local politicians, silence journalists with complete impunity".

Last month, Maria Ressa, the head of popular online news site Rappler, was found guilty of libel, in a case seen by many as an attempt to silence the site, which had been critical of the government.

The Philippines ranks 136th out of 180 countries on the World Press Freedom Index.

How lawmakers voted on ABS-CBN's failed bid for new franchise

After 12 sessions of hours-long deliberations on the issues surrounding ABS-CBN Corporation, the House Committee on Legislative Franchises denied the television giant to operate for another 25 years.

Eighty-five members of the House Committee on Legislative Franchises decided on the fate of the media giant. Of this number, 46 are regular members and 39 are ex-officio members.

The chamber on Thursday had a summation of all issues thrown at the network such as the citizenship of ABS-CBN chairman emeritus Gabby Lopez, the 50-year limit on franchises, issuance of Philippine Depositary Receipts to foreigners, alleged tax-avoidance schemes, political meddling, and unfair labor practices, among others.

Then a technical working group (TWG) was formed to discuss all the recommendations regarding the franchise application. The TWG decided later to disapprove the network’s franchise renewal.

As the lawmakers were about to vote, committee chairperson Rep. Franz Alvarez explained that a “yes” vote would mean support to the adoption of the TWG’s resolution to deny the renewal, and a “no” vote means being in favor of granting ABS-CBN a fresh legislative franchise.

In the end, 70 lawmakers agreed with the TWG to deny the franchise application, while 11 others voted against the recommendationn. At least three lawmakers inhibited.

Deputy Speaker Rep. Pablo John Garcia said that not all members of TWG were consulted because of their stance on the issue based on their conduct during the hearing.

“The consensus was determined by the TWG by consulting some of the members," Garcia said. "Not all members were consulted because the inclinations of some of the members can already be determined from their conduct during the hearings."

The TWG said in its report that the recommendation is not related to press freedom, but “denial of a privilege granted by the State because the applicant was seen undeserving of the grant of legislative franchise.”

Of all the issues raised on ABS-CBN, Anakalusugan Party-list Rep. Mike Defensor told CNN Philippines that the members of the TWG agreed that only the issue on the 50-year limit on franchises did not violate the Constitution.

As of this writing, the House has not yet released the names of the congressmen who voted against the franchise renewal.

But according to Kabataan Party-list Rep. Sarah Elago, the 11 lawmakers who favored granting a 25-year franchise to ABS-CBN were the following:

1. Sol Aragones
2. Toff De Venecia
3. Carlos Zarate
4. Gab Bordado
5. Vilma Santos
6. Lianda Bolilia
7. Ping Tejada
8. Benny Abante
9. Stella Quimbo
10. Mujiv Hataman
11. Edward Maceda

Quimbo lamented that denial of a new franchise to the network would mean job losses for the 11,000 employees.

“Pangunahin po sa naging paninindigan natin ang pagsasaalang-alang sa kapakanan ng mga empleyado’t manggagawa ng network na inaasahang mawawalan ng trabaho, gayong may napakalaking krisis pa naman sa COVID-19," said Quimbo in a statement. "Saan na sila pupunta?."

[Translation: I stood for the welfare of the workers of the network, who will lose their jobs, especially now that we are facing a huge crisis on COVID-19. Where will they go?]

Meanwhile, Sagip Party-list Rep. Rodante Marcoleta, one of the staunch critics of ABS-CBN, said the broadcasting network should have been humble.

“It’s too late now. Hinihintay ko lang sanang magpakababa sila eh (I was waiting for them humble down themselves),” said Marcoleta. “They had that sense of entitlement.”



Abante told CNN Philippines that the media giant can file a motion for reconsideration and lawmakers can also file a new bill seeking a new franchise for the network once Congress resumes session on July 27.

In case the committee voted no on the renewal of franchise, Defensor recently explained that ABS-CBN could reapply for legislative franchise.

ABS-CBN has been off air since May 5 after the National Telecommunications Commission issued a cease and desist order due to the expiration of its legislative franchise.

CNN Philippines correspondent Xianne Arcangel contributed to this report

https://cnnphilippines.com/news/2020/7/10/How-lawmakers-voted-ABS-CBN-franchise-.html

Cayetano: Read thoroughly the findings of House committee to understand decision on ABS-CBN

House Speaker Alan Peter Cayetano wants the public to read thoroughly the findings made by the House Committee on Legislative Franchise on ABS-CBN’s bid for a fresh franchise that was rejected by the House panel.

In a statement issued following the 70-11 voting on the findings made by the three-man Technical Working Group, Cayetano said it is important for the public to fully understand why the vote went that way.

“The House leadership asks that the people read the findings carefully in order to appreciate the reasons for their decision. And for those who do not agree, at the least, understand why the decision had to be so,” Cayetano said.

Although qualified to vote as ex-officio committee member, the House leader did not participate in the voting that took place on the 13th meeting of the legislative franchise panel chaired by Palawan Rep. Franz Alvarez.

Cayetano recalled that prior to the start of the congressional hearings that was jointly conducted with the Committee on Good Government, the Lower Chamber “committed and delivered a time for Congress to conduct fair, impartial, thorough, and comprehensive hearings on the application for franchise renewal of the ABS-CBN Corporation.

“Because of the highly partisan nature of this issue, we accepted from the start that there would be those who will vehemently disagree with the committee’s decision, no matter what they resolve,” he said.

Cayetano had admitted that he used to harbor a grudge against the network who he had previously accused of engaging in partisan politics, especially during the 2016 president elections.

Despite this, the House official assured the public that ABS-CBN will be treated with fairness and will be given a chance to respond to complaints against the network.

Cayetano likewise stressed that the process was by no means easy for anyone involved in the proceedings, but assured the public that the final resolution was not arrived at by the Committee on Legislative Franchises without serious consideration of the overall impact it will have on the nation.

Cayetano acknowledged the fact that the public has differences in opinions about the issue.  However, he remained confident that “everyone will eventually come to respect the decision of the committee. 

Solons may refile ABS-CBN franchise renewal bills in case of rejection

House members can immediately refile bills seeking the renewal of ABS-CBN’s operating franchise in the event that the Legislative Franchises Committee votes against the current application after the series of marathon hearings.

“As far as I know, there’s no prohibition on the filing or re-filing of bills that are not favorably acted upon by a committee,” a congressman told the Manila Bulletin on Friday.

He said that unlike impeachment complaints against the President, which are limited to just one per year, there are no prescribed limits for the filing of franchise application bills. He said these are treated like any other proposed measures in the House of Representatives.

“Just like any other bill that doesn’t become a law for whatever reason, like it was vetoed, it was approved by one chamber but wasn’t by the other chamber, it didn’t reach third reading, or it wasn’t acted upon by a committee, it could be filed again in the next Congress,” the congressman explained.

But members of the House don’t necessarily have to wait for the next Congress to refile.

“What the members can file is a similar bill [to the one that did not prosper], but it should not be the exact same bill. Obviously, if the subject of a bill is the same as one that a committee has already decided on, the committee will not deliberate on it again anymore,” he said.

He underscored that the practicality of refiling similar bills at once is an entirely different matter. “The committee that tackled your bill will basically have the same composition as before. You’re talking to the same people. So there’s no certainty of a different result.”

The pending franchise renewal of television and radio giant ABS-CBN has led to an unprecedented 13 joint hearings by the Legislative Franchises Committee and the Good Government and Public Accountability Committee from start to finish.

Receiving much focus and attention both at the plenary hall and in social media during the proceedings were the alleged violations of the network against the 1987 Constitution and its previous 25-year franchise.

The company, which went off the air last May 5, employs an estimated 11,000 people. It will begin laying off workers by August this year if their non-operation persists.

“ABS-CBN will be the most high-profile rejection by the Legislative Franchises panel, if it does get rejected. Rarely talaga nag-rereject ang committee kasi usually kung ayaw i-approve, hindi lang ite-take up (Rarely does the committee ever reject an application. If there’s a bill that it doesn’t want to approve, then it’s usually not taken up),” the congressman said.

Philippine Congress Officially Shuts Down Leading Broadcaster

By voting not to renew the franchise of ABS-CBN, lawmakers silenced a major network that had come under fire from President Rodrigo Duterte.

Philippine lawmakers on Friday formally shut down the country’s largest broadcast network, the latest major blow against the news media as President Rodrigo Duterte cracks down on outlets that have been critical of his leadership.

After 13 hearings, a committee of the House of Representatives — most of whose members are allied with Mr. Duterte — voted by an overwhelming majority to deny ABS-CBN’s application for renewal of its broadcast franchise. The network had been forced off the air in May, after the franchise expired.

“We remain committed to public service, and we hope to find other ways to achieve our mission,” said Carlo Katigbak, ABS-CBN’s president and chief executive, in a statement on Friday. He said the network was “deeply hurt.”

The president’s spokesman, Harry Roque, sought to distance Mr. Duterte from the decision.

“The palace has maintained a neutral stance on the issue as it respects the separation of powers between the two coequal branches of government,” he said. “Much as we want to work with the aforesaid media network, we have to abide by the resolution of the House committee.”

Mr. Duterte has accused ABS-CBN of bias, including favoring a political opponent in the 2016 election, and had earlier warned that he would not allow the renewal of its franchise.

The president’s critics say he has gone after media outlets that closely documented his drug war, which has left thousands of people dead since he took office in 2016.

ABS-CBN ceased operations of its free TV and radio channels by government order after its 25-year franchise expired in May. ABS-CBN still operates a cable channel and internet sites, but the company has told its 11,000 employees that they could be let go by August if its broadcast franchise was not renewed.

After the network went off the air, there was a backlash from millions of Filipinos who rely on it for news, forcing the lower house of Congress to rush hearings on the franchise renewal.

The government has accused ABS-CBN of illegally operating a cable channel, as well as hiding behind what it called a “corporate veil” that allowed foreign investors to own part of the firm. ABS-CBN has denied the allegations.

Fourteen lawmakers who sponsored bills backing the network argued that the hearings had not proven that ABS-CBN broke any regulations that warranted its closure.

“Seventy million Filipinos tune to its programs weekly,” they said in a joint statement. “Now more than ever, in the time of a pandemic, we need a vibrant and independent source of information and news to tell the people what is going on.”

Nonoy Espina, who heads the National Union of Journalists of the Philippines, said that lawmakers who were seeking to block the franchise renewal had “gripes” to settle. By voting to shut down ABS-CBN, Mr. Espina said, the House “has lost all claim to represent the people and our interests.”

The congressional hearings did shine a light on some shortcomings of big media networks, including unfair labor practices and a lack of self-regulation, analysts said.

“But legislators have no business to say how media should operate,” said Danilo Arao, a journalism professor at the Polytechnic University of the Philippines. ABS-CBN, he said, “is being singled out.”

Phil Robertson, the deputy Asia director at Human Rights Watch, called the decision a “grievous assault on press freedom,” adding, “This move solidifies the tyranny of President Rodrigo Duterte.” The Foreign Correspondents Association of the Philippines said it was a “profoundly dark day for journalists.”

As the leading broadcaster in the country, ABS-CBN was known for its prime time flagship news program, “TV Patrol,” as well as soap operas and afternoon variety TV shows.

Along with the online news site Rappler, ABS-CBN has been at the forefront of coverage of Mr. Duterte’s violent drug war.

Recently, a Manila court convicted Rappler’s chief executive, Maria Ressa, and a former staff writer of cyberlibel. Ms. Ressa, an award-winning former CNN journalist, is out on bail while the case is on appeal, but she could face up to six years in prison.

Mr. Duterte has often gone after members of the press that he dislikes. He has called journalists “sons of bitches” and warned that they were not exempt from the possibility of physical attacks.

He has accused Rappler of being funded by the Central Intelligence Agency, though he has never offered evidence for that. This week, he accused Ms. Ressa of being a “fraud” and said a new case could be filed against her. He did not elaborate.

Marcoleta: No chance for ABS-CBN to get new franchise, not even in 2022

There is chance for ABS-CBN Corp. to secure a fresh 25-year license even if the company files a new franchise bill in 2022, as the government will likely give the network's revoked frequencies to a "more deserving" applicant, Deputy Speaker Rodante Marcoleta said Friday.

At a press conference live streamed on Facebook after a House panel voted to deny ABS-CBN's bid for a new license, Marcoleta, who has led attacks against the Lopez-led network since legislators were forced to tackle the company's franchise bills, said broadcast frequencies are "finite resources" that the government "allocates."

"Pano kung may binigyan na ang gobyerno? Anong franchise pa ang ibibigay mo sa kanya (What if the government gives the franchise to another media company? What franchise are you going to give to ABS-CBN)?" Marcoleta said.

Marcoleta is a member of the powerful Iglesia ni Cristo, which was rumored to be lobbying for the non-renewal of ABS-CBN's franchise. Philstar.com cannot independently verify the rumor. On Wednesday, House Speaker Alan Peter Cayetano denied what he called "rumors of threats and intimidation coming from certain groups, even linking it with specific religious organizations, and congressional leaders."

Voting 70-11, a joint panel at the House of Representatives rejected a bill seeking the renewal of the network's congressional franchise, which expired on May 4.

The move will ensure the embattled media company will remain off air since the Duterte administration ordered it to "cease and desist" its free TV and radio channels on May 5, a first since late dictator Ferdinand Marcos Sr. did the same during the martial law era. 

Officials of the National Telecommunications Commission have not been answering phone calls from Philstar.com for comment. 

ABS-CBN's franchise woes started after earning the ire of President Duterte, whose allies dominate the House of Representatives. Upon taking office in 2016, Duterte repeatedly attacked ABS-CBN and threatened to block the renewal of the company's franchise.

At a House hearing on Monday, Regina Reyes, head of ABS-CBN’s news division, said around 69 million people lost access to information and entertainment from the network due to the shutdown. Founded in 1953, the network employs some 11,000 people.

Some lawmakers said ABS-CBN can still appeal the panel's decision or apply again for a franchise as long as bills for it are filed. But Marcoleta disagreed.

"As for them filing another bill, there's no way. Why would you process the application from the same organization when it was rejected?" he said.

DENIED | Lawmakers reject ABS-CBN franchise renewal

Lawmakers in the lower chamber of Congress denied renewing the franchise of broadcast media giant ABS-CBN on Friday.

The House Committee on Legislative Franchises voted 70 against the renewal, and 11 for the renewal. Two have chosen to inhibit, while one abstained.

Only 44 votes were required to pass the resolution.

“This in effect, kills the franchise,” Anakalusugan Rep. Mike Defensor said.

A Technical Working Group (TWG), headed by Deputy Speaker Pablo Garcia of Cebu drafted the recommendations after the summation of arguments presented by lawmakers on Thursday.

“The likely consensus among members of this committee was to disapprove the application of ABS-CBN for another franchise,” Garcia said.

Bayan Muna Rep. Carlos Zarate, who argued for the renewal, questioned how the consensus was done.

But Anakalusugan Rep. Mike Defensor said both majority and minority members were represented in the TWG, noting that Marikina Rep. Stella Quimbo voted against the resolution.

The National Telecommunications Commission ordered the network to stop broadcasting on May 5, after its franchise expired the day before.

Lawmakers spent 12 hearings on various issues such as chairman emeritus’ Gabby Lopez’ citizenship, questions of bias, tax payments, property titles, and blocktime agreements as ABS-CBN petitioned to renew its franchise for 25 more years.

But the 74-year old network may file a motion for reconsideration or refile its franchise application.

ABS-CBN can re-apply for franchise under Duterte admin if House rejects bid: solon

ABS-CBN Corp. can again seek a franchise during President Rodrigo Duterte's administration if its application is rejected on Friday by a House committee, a lawmaker said. 

Over 90 members and ex-officio members of the House franchise committee on Friday afternoon are expected to vote on the network's franchise, with the jobs of its 11,000 workers on the line. 

"ABS-CBN is not precluded from filing another application for franchise. Once there's a sponsor, even if it is within the same Congress that rejects its franchise, hindi naman ipinagbabawal iyan (that is not prohibited)," said Bayan Muna Rep. Carlos Zarate.

But if lawmakers reject its franchise application, the National Telecommunications Commission can assign ABS-CBN's frequency to another entity, he said. 

"'Pag nag-apply siya ulit ng prangkisa, either within this 18th Congress or thereafter, magsisimula siya sa una dahil kumbaga, meron kang prangkisa, wala ka naman magamit na frequency. Hahanapan ka pa ng available frequency," he told ANC. 

(If it re-applies for a franchise either within this 18th Congress or thereafter, it will start from scratch because you could have a license, yet no frequency you can use. Regulators will have to find an available frequency for you.) 

"Sa Metro Manila, sagad na ang frequency d'yan. That's why I will not be surprised na talagang may mga interesado doon sa frequency ng ABS-CBN because of its strategic importance sa economy, business, even sa pulitika," he added. 
 
(The frequency here in Metro Manila is already full. That's why I will not be surprised if there are parties interested in the ABS-CBN frequency because of its strategic importance on economy, business, even politics.) 

Over 90 members and ex-officio members of the House franchise committee will decide on the network's franchise, said Zarate, who urged House leaders to allow the plenary, or the whole chamber, to vote. 

"Some of the members of the House, mayroon din silang mga constituencies na nananawagang ibalik ang ABS-CBN (they have constituencies who are appealing for ABS-CBN's return)... Only problem is they cannot vote," he said. 

"If we are really the representatives of the people, allow the majority of the representatives of our people to say their piece in the plenary," he added. 

The NTC on May 5 shut down ABS-CBN's free television and radio services, day after its franchise expired. This is despite the commission's commitment to lawmakers in March that it would let the network operate beyond May 4 while Congress had yet to decide on its license. 

ANC, July 10, 2020