Exec refutes allegations against ABS-CBN
AFTER being accused of violating the 1987 Constitution, ABS-CBN Corp. on Monday debunked all allegations against the broadcasting network, including foreign ownership and questions about the citizenship of its chairman.
During the joint hearing of the House Committee on Legislative Franchises and Committee on Good Government and Public Accountability, ABS-CBN President Carlo Katigbak told lawmakers that the company has remained compliant with the Constitution.
Katigbak said former Chairman and President Eugenio “Gabby” Lopez III is a natural-born Filipino citizen by virtue of his being born to Filipino parents, specifically his father, in 1952, consistent with the 1935 Constitution.
“The Bureau of Immigration [BI] recognized this in its order dated April 25, 2001. This was subsequently affirmed by the Department of Justice on August 6, 2001,” he said.
Katigbak also said the Philippine Depository Receipts (PDR) issued by ABS-CBN Holdings Inc., has been cleared and upheld as legal by the Securities and Exchange Commission (SEC) on October 4, 1999.
He noted that ABS-CBN Holdings Inc. is “a totally different entity” from ABS-CBN Broadcasting Inc. which holds the congressional franchise of the frequencies. Katigbak said this set up is similar to that of GMA Network.
“A PDR is not a share in ABS-CBN. PDR holders cannot vote on any ABSCBN matter because they do not hold shares in ABS-CBN,” he said.
On franchises being limited to a total of 50 years, Katigbak reiterated that the maximum 50 years is for a single-term franchise and not the total limit of any single public utility franchise, saying this is the reason that others—such as GMA-7 and Meralco—have franchises going beyond 50 years.
“The 50-year limit applies to each grant or renewal of franchise. There is no limit to the number of franchises that can be granted to a company overtime,” he said. On the issue that ABS-CBN was given to the Lopez family for free after the EDSA revolution in 1986, Katigbak said the company was never transferred to the Marcos government.
“The Lopez family never gave up ownership of ABS-CBN. It was never sold nor was ownership ever transferred.”
He said the broadcast facilities were used by Roberto Benedicto’s KBS/RPN and the Banahaw Broadcasting Corp., then later by the government’s PTV-4 until both had their own facilities in Broadcast City and Visayas Avenue, respectively.
For his part, Cagayan de Oro Rep. Rufus Rodriguez said allegations regarding the citizenship of Gabby Lopez and the PDRS "have no basis in law.”
“First, Mr. Eugenio Lopez III is born to Filipino parents. DOJ [Department of Justice] and BI have both recognized this. The second issue is PDRS. It does not give PDR holders ownership of share. The SEC has issued permit. Therefore there is no truth in the allegations,” he said.
‘End is near’
IN the same hearing, Solictor General Jose Calida said ABS-CBN PDR grants beneficial ownership to the PDR holders based on the rights conferred upon them.
“Indeed, the ABS-CBN PDR has provided for a creative mechanism to indirectly own the underlying ABSCBN shares of stock, but no matter how creative, the resulting end remains that enables non-filipino to beneficially own a media conglomerate, the ABS-CBN Corp,” he said.
“The countenance this practice is a looming threat to our sovereignty which the Constitutional safeguards aim to protect,” he added.
Also, Calida said ABS-CBN was not authorized to use free-to-air signals for its KBO Channel. He said ABS-CBN charges P30 from the viewing public to be able to watch the movies and other content in the KBO Channel without obtaining prior approval from the National Telecommunications Commission (NTC).
Calida also said ABS-CBN violated the nature and scope of its franchise when it allowed another entity, Abscovergence, to “make use and abuse” its legislative franchise.
The hearings on the bills granting ABS-CBN new franchise will resume on Wednesday.
Also, Calida used “the end is near” line from the iconic Frank Sinatra classic, “My Way,” to warn that there’s no way his office would allow ABSCBN Corp. to resume operations after committing “too many violations” of the Constitution and its previous franchise. “ABS-CBN has committed too many violations which went unnoticed and unpunished. But we are determined to root out such illegal practices,” said Calida.
“ABS-CBN is motivated not by service but by greed and a desire for power and influence. Their brazen acts must come to an end. The hour of reckoning may have been delayed, but it has now come.”
He also denied meddling with Congress when he advised the NTC not to grant ABS-CBN provisional franchise that will allow the network to broadcast while the renewal of its legislative franchise remains pending. The NTC eventually issued a cease and desist order against ABSCBN after its legislative franchise expired last May 4.
Calida, who earlier filed a quo warranto case against ABS-CBN before the Supreme Court, said he was “not at loggerheads with Congress” as he merely cautioned the NTC of its possible encroachment on the legislative power.
In explaining his absence during the previous hearing, Calida invoked the principle of sub judice in light of his quo warranto case and the petition for certiorari and prohibition filed by ABS-CBN before the Supreme Court. For his part, NTC Commissioner Gamaliel Cordoba again apologized to Congress for the “confusion” caused by the closure order against ABS-CBN even as he maintained that the agency merely followed the law, which provides that a broadcasting company can only operate in the country if it has a legislative franchise.