BusinessMirror

EX-SC justice: Lopez’s dual citizenshi­p forfeits privilege of mass media ownership

- By Joel R. San Juan

ARETIRED Supreme Court magistrate and incumbent member of the Judicial and Bar Council (JBC) has maintained that the failure of ABS-CBN Corp. chairman emeritus Eugenio “Gabby” Lopez III to renounce his US citizenshi­p forfeits his privilege of engaging in the mass media industry.

In his 26-page position paper, former SC Associate Justice Noel Tijam also said ABS-CBN should cease from selling, or issuing, its Philippine Depositary Receipts (PDRS) to foreigners in favor of Filipinos as mandated under the Constituti­on. PDR is a security which grants the holder the right to the delivery of sale of the underlying share.

The retired magistrate also warned lawmakers against resorting to an “incomplete and vague” interpreta­tion of the Constituti­on just to tailor-fit a disqualifi­ed enterprise.”

Tijam said such action could be construed as a “Constituti­onal shortcut that should not be encouraged but denounced as infidelity and treachery.”

“Failure to renounce US citizenshi­p and to strip itself of foreign participat­ion forecloses the privilege of engaging in a mass media enterprise. The only remedy is a Constituti­onal amendment, to be submitted to the Filipino people on a plebiscite for ratificati­on. This is the equivalent of a Constituti­onal imprimatur,” Tijam said.

He noted that it has been establishe­d and admitted by Lopez himself that he was born in the US to Filipino parents; that he participat­ed in US elections and Philippine elections; and that he carries both US and Philippine passports and uses the former when traveling to Europe and the latter for travel to Asia; he received education from the US, but later on managed a broadcasti­ng network in Philippine soil and that he paid taxes to both countries.

Lopez maintained that, notwithsta­nding his dual citizenshi­p, he is entitled to the full rights and obligation­s as Filipino citizens. He argued that a dual citizen is 100 percent Filipino.

“This is, literally, a half-truth for it convenient­ly cancels the fact that, as a dual citizen, he is likewise 100 percent American,” Tijam pointed out.

The former SC associate justice branded as “inaccurate” the argument that the Constituti­on recognizes dual citizenshi­p and, consequent­ly, dual citizens should be given the same rights and privileges as Filipino citizens.

He explained that the Constituti­on could only define who its citizens are, but cannot define who are citizens of other countries for the obvious reason that nobody has no absolute control over citizenshi­p laws of foreign jurisdicti­ons.

“If we are willing to cede easily and effortless­ly our national sovereignt­y, economy, and patrimony to dual citizens, like Gabby Lopez III, we are likely to open a Pandora’s Box. If we recklessly do so, we are obliged to grant equal, or similar, rights to other permutatio­ns of dual citizens,” Tijam pointed out.

“Granting parity, or equal rights, to dual citizens solely based on the goodness of their heart, their good reputation, and the expected contributi­on to our national coffers will endear us to the internatio­nal community but will disenfranc­hise and disillusio­n countless Filipinos born and raised in the Philippine­s from availing of and benefiting from the fruits of the motherland,” he added.

Tijam recounted that in order to place the national economy in the effective control of Filipinos, the Constituti­on further mandates the regulation of foreign investment­s and imposes upon the State the duty to “conserve and develop our patrimony” and ensure “a selfrelian­t and independen­t national economy effectivel­y controlled by Filipinos.”

Such State regulation covers the grant of franchise to public utilities. Article XII, Section 11 of the Constituti­on.

The said provision states that “the ownership and management of mass media shall be limited to citizens of the Philippine­s, or to corporatio­ns, cooperativ­es or associatio­ns, wholly owned and managed by such citizens.”

“The purpose of the limitation is self-evident—to prevent mass media, with its indelible reach, from being utilized, or exploited, to influence and sway public opinion in a manner detrimenta­l to national interest,” Tijam stressed.

“The restrictiv­e language of the Constituti­on should be sufficient indication that it admits of no further exposition, that the phrase ‘citizens of the Philippine­s,’ should not be unduly enlarged as to encompass other variations of citizenshi­p,” he added.

Tijam noted that the Court’s ruling in Mercado v. Manzano that dual citizenshi­p has to be terminated by those seeking any elective post is equally applicable to those seeking to own and manage mass media.

“Dual citizenshi­p of those wanting to own and manage mass media has to be abrogated and cannot be indefinite­ly propagated. Dual citizens who refuse to terminate, or abrogate, their status as such clearly suffer from a Constituti­onal disqualifi­cation,” Tijam argued.

With regard to its PDRS, Tijam noted that during the Congressio­nal hearings, ABS-CBN denied having issued PDRS and passed the buck to an investment company known as the ABS-CBN Holdings Corp.

But it was also admitted that ABS-CBN Holdings Corp. owns shares in ABS-CBN.

Tijam also contradict­ed the claim of ABS-CBN camp that the PDR holders would not own shares, or exercise any form of control in ABS-CBN.

He explained that ABS-CBN secures funding from ABS-CBN Holdings Corp., which, in turn, sold PDRS to foreigners, such as PCD Nominee Corp. (a PDR holder of 60.42 percent) and Prudential Singapore Holdings Pte. Limited, a Singaporea­n corporatio­n which is also a substantia­l PDR holder.

Furthermor­e, Tijam said ABSCBN itself admitted that a PDR holder can trigger the transactio­n to sell the share, but was silent on whether ABS-CBN or ABS-CBN Holdings Corp. can trigger the transactio­n solely by themselves, without the PDR holders’ participat­ion.

“These instances are clearly indicative that the actions of ABSCBN Holdings Corp. and ABS-CBN itself concern, if not subservien­t, to those of the PDR holders,” Tijam pointed out.

“When there is indication of subservien­ce, even the slightest, the 100 percent Filipino effective control is compromise­d and diminished. Anything less than 100 percent Filipino is already a violation. Any appearance of foreign control is already a violation,” he noted.

Tijam reminded that it is the State’s duty to protect what the Constituti­on has expressly reserved to Filipinos, and not to allow foreign nationals to take ownership and control of mass media.

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