House probes PT&T franchise violations

MANILA, Philippines — The House of Representatives is investigating a potential third telecommunications (telco) industry player for alleged violations of its congressional franchise.

“We have opened an inquiry into the non-compliance with the terms and conditions of its franchise by Philippine Telegraph and Telephone Corp. (PT&T),” a member of the committee on legislative franchises told The STAR.

He said PT&T has been sold by its former owners to a group of investors “without getting the prior approval of Congress, as required by its franchise.”

He said the subcommittee on oversight conducted on Tuesday its first hearing, which was held behind closed-doors – the reason why the lawmaker did not want to be named.

Officials of the National Telecommunications Commission (NTC) and Philippine Competition Commission (PCC) attended the hearing.

“NTC officials confirmed the sale of PT&T. They told us that they did not know beforehand of the company’s transfer of ownership,” the source said.

He said the subcommittee intends to hold more hearings.

Responding to questions, the lawmaker said he did not know what would be the eventual recommendations of the oversight subcommittee.

“Their legislative franchise provides that if there is violation, such as transfer of ownership without congressional approval, the franchise could be cancelled,” he added.

He pointed out that the House wants all holders of legislative franchises to comply with their terms and conditions.

According to news reports, PT&T has been sold to the group of businessmen Salvador Zamora and Benjamin Bitanga through their investment firm Menlo Capital, which acquired 70 percent of the telco player.

Bitanga has been installed as new PT&T president and Zamora as chairman.

Zamora is a brother of San Juan Rep. Ronaldo Zamora and billionaire businessman Manuel Zamora. The Zamoras are into nickel mining, among other businesses.

In 2015, Congress renewed PT&T’s telco franchise for another 25 years.

The company has informed the Philippine Stock Exchange that it intends to regain its status as a major telco player. 

It is now expanding its broadband business and has scores of big businesses as clients.

 It said it was looking for a foreign partner for future expansion. 

The government is inviting several local and foreign companies to become the country’s third telco player.