ABS-CBN can still apply for a new franchise — Palace
MANILA, Philippines — Television network ABS-CBN could still apply for a new franchise if the Office of the Solicitor General (OSG) succeeds in its bid to revoke its franchise, Malacañang said Thursday.
Presidential spokesman Salvador Panelo said the subject of the quo warranto petition filed by Solicitor General Jose Calida was the network's present franchise, which is set to expire on March 30.
"You know, actually the filing of the petition is ‘a much ‘ado about nothing’ with respect to the opposition because if the quo warranto succeeds, then all the ABS-CBN can do is to apply for a new franchise. There’s nothing that would prevent them from applying again for a new franchise," Panelo told ABS-CBN News Channel.
"What I’m saying is, the reason why the SolGen (solicitor general) filed this case is because that is his constitutional duty...a legal duty imposed on him by law. If he does not, then he opens himself to criminal prosecution – of dereliction of duty...He cannot close his eyes to any violation regardless of the time," he added.
Last Monday, the OSG asked the Supreme Court to forfeit the legislative franchises of ABS-CBN Corp. and its subsidiary ABS-CBN Convergence Inc. citing what it described as "highly abusive practices" of the network.
The OSG claimed that ABS-CBN has been broadcasting for a fee, something it said is beyond the scope of its franchise.
It also accused ABS-CBN of violating the constitution by allowing foreign investors to take part in the ownership of a Philippine media entity.
The network, the OSG said, had issued Philippine Deposit Receipts (PDRs) through ABS-CBN Holdings Corp. to foreigners in violation of the foreign ownership restriction on mass media in the Constitution.
Calida also claimed that ABS-CBN abused the privilege granted by the state when it launched and operated a pay-per-view channel KBO without prior approval of the National Telecommunications Commission.
ABS-CBN Convergence Inc., meanwhile, was accused of resorting to an "ingenious corporate layering scheme" to transfer its franchise without congressional approval. OSG said the company had failed to publicly offer any of its outstanding capital stock to any securities exchange within the Philippines within five years from the start of its operations, one of the conditions in its franchise.
ABS-CBN has denied violating the law and claimed that the OSG's allegations do not have merit.
The company said all its broadcast offerings, including KBO, have received the necessary government and regulatory approvals and are not prohibited by its franchise. It also claimed that ABS-CBN Holdings’ PDRs were evaluated and approved by the Securities and Exchange Commission and the Philippine Stock Exchange prior to its public offering. ABS-CBN also maintained that that its ownership in ABS-CBN Convergence was undertaken under the same law and structures that have been used by other telecommunications companies. The transfers were approved under the Public Telecommunications Policy Act and are fully compliant with law, the network added.
Journalists groups have condemned the quo warranto petition, calling it a threat to press freedom and an attempt to silence media outlets perceived as threats to the administration.
- Latest
- Trending
