An Indonesian tycoon’s media empire in the Philippines exposed

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Indeed, that we have lost our which he is the biggest controlling sense of nationalism and the stockholder and as such, wields the respect for the rule of law has power to determine who make up been clearly demonstrated by the the telecom giant’s management. Filipinos’ nonchalance over an Indonesian tycoon’s control of a media empire. 2012 Supreme Court ruling that

Salim, through intermediary limit on foreign ownership. The 77 Court, strangely though, has not percent of and 51 implemented this ruling. percent of the

media mogul having control not 20 percent shares held by two only of print media outfits but Japanese NTT subsidiaries, and 28 two television and radio networks, percent by other foreign stockholdTV5 and AksyonTV, which includes ers (mostly via the stock market), more than two dozen radio staforeign ownership of the country’s tions all over the country, the biggest telecom totals 74 percent nation’s largest satellite-to-home – a situation which, to use the SuCignal TV, and even an internetpreme Court’s words in its decision only news site, interaksyon.com. on the issue, “makes a mockery of

- our Constitution.” ippine Star in 2014, Salim has become the biggest media mogul the pension trust fund, called the - eto-Delgado clan of the its 20,000 employees. When BTF Emilio Yap’s heirs in the Manila started buying into the media Bulletin, the Lopezes of ABS-CBN, sector, its chairman was the same and the three families owning person who had been serving as GMA-7. adviser to Salim and his top ex- billion of its cash assets at the time — in a company called Media media companies.

MediaQuest is the investing company for the two broadcast en - ment Corp., which owns VHF TV5, broadcast enterprise. The second is Nation Broadcasting Corp, which based in the country’s major cities outside metropolitan Manila.

It is also MediaQuest which owns an investing company, Satventures, which, in turn, owns Cignal TV, now the country’s largest satellite-to-home TV company with 1 million subscribers as of September last year. MediaQuest’s subsidiary, Hastings Holdings Inc.,

P10B for Cignal TV

trust fund to set up his media empire, which most probably has

By having the BTF as investor in - the media empire, Salim can preQuest to fund Cignal TV, a ditend that his print and broadcast rect-to-home satellite television media empire does not violate the service. The massive infusion of constitutional ban on foreign infunds explains why Cignal TV in vestors in local media enterprises. just four years became the largest

Yet, through his power over - operator in the country, with a holder, he controls the media claimed 1 million subscribers by empire through BTF’s Board of September 2014. Trustees, which has been chaired In March 2013 and then March since del Rosario stepped down to become the Aquino government’s - foreign secretary – by Ray Espi its subsidiary Hastings Holdings, top legal adviser.

billion new funding was apparhas been Salim’s man running the ently used as payment to House media conglomerate. He has been Speaker Feliciano Belmonte in the publisher of exchange for his family’s holdand

- - ippine ruling elite pretends that ent tack in funding its TV5 unit. Salim isn’t in control of one of the biggest multi-media conglomerTelecommunications made adates in the country today, in violavertising placements with it, paid tion of our Constitution. in advance, which it committed

BTF’s resources, however, were not enough to fund the huge requirements of Salim’s media enterprises. Its investment in these advertising placements MediaQuest already made up 80 started in 2010 for a five- year percent of its assets. So Salim borterm, and has been renewed for rowed a page from his competitor, broadcast company ABS- CBN up to 2021. support for TV5 has worried the broadcast media industry, as it is get foreign equity injected into its obviously the template for chanmedia conglomerate.

- tion by the country’s tycoons to - go around the constitutional ban cially Meralco. or limit on foreign investment in With advertising funds limited in the country, Salim’s competirepresents a share in a restricted tors in the media industry could company, and when bought by be hit badly, even driven to the a foreign entity, gives the buyer ground if the Indonesian tycoon the right to all the dividends due decides for two years to devote the shares of stock acquired. The the entire amount of advertising foreigner, therefore, does not tech - nically own a share to create the co to TV5 and its newspaper, the the Constitutional restrictions, Why has Salim gone into a but will receive the income due that share. would never be really stellar be

Why would an investor hold a market, and where the country’s him a share of the company it richest tycoons such as the Sys, represents? The answer is obvious Gokongweis and the Ayalas haven’t dared to go? any control of MediaScape or its entity.

Public opinion

the obvious fact that media plays a dominant role in forming public opinion in the modern era. It is also a major force in politics. woo the friendship of owners and editors of the major broadsheets and TV networks as their media - ize a political leader and prettify a preferred one.

Salim, in fact, now has in place a perfect machine for controlling a population’s mind. First, a content generator made up of his news enterprises in print, broadcast and the internet; and second, a content disseminator Smart Communications, the biggest in the country (with Sun as a cheaper brand) and his direct-tohome satellite television service Cignal TV and his cable news network.

Never in our history has there been such a magnate controlling companies in all forms of media and communications.

- ate has become so huge in the of its controlling stake in public utility firms rests on flimsy legal - thetic with Salim, no matter if his companies violate the spirit of the Constitution, would be crucial for the holding company’s continued presence in the country. That makes me very curious if he has been a major player in our recent presidential elections.

An Indonesian disregards our Constitution and laws by skirting its regulatory, legal loopholes with the help of the best and brightest of Filipinos. An Indonesian controls a media conglomerate in an industry where the Constitution totally bans all foreign participation.

His conglomerate consists almost entirely of telecommunications, power, water services and infrastructure companies and, therefore, is heavily dependent on government regulation, the implementation, or lack of it, of which depends on the

the other way and pretends there is no conglomerate in strategic public utilities and in media controlled by an Indonesian tycoon.

What kind of a country have we become?