House threatens NTC execs with contempt

MANILA, Philippines — The House committee on legislative franchise wants officials of the National Telecommunications Commission (NTC) cited for contempt if they fail to explain satisfactorily their reason for ordering ABS-CBN to shut down.

The panel noted that the order was issued despite an earlier promise by the NTC to lawmakers to issue a provisional authority to the network giant while its legislative franchise is still being worked out.

“You are ordered to explain within 72 hours why you should not be cited in contempt,” Palawan Rep. Franz Alvarez, committee chairman, told the NTC, which issued a cease and desist order or CDO to ABS-CBN on May 5.

In issuing the CDO, the NTC cited the network giant’s lack of franchise.

“Your failure to comply with this order within the period prescribed will result in a finding against you for contempt of the House and subject you to other actions that are within the powers of the House to enforce,” he said. Contempt usually entails detention. NTC official John Rahdo Anacay received the House letter yesterday.

The letter was addressed to NTC Commissioner Gamaliel Cordoba and his deputies, Edgardo Cabarios and Delilah Deles, along with legal division chief Ella Blanca Lopez. 

“The act of the NTC constitutes undue interference on and disobedience to the exercise of the power of the House, and therefore, an affront to its dignity and an inexcusable disrespect of its authority,” Alvarez pointed out.

Under oath, Cordoba and his colleagues assured congressmen in a committee hearing last March 10 that they would allow ABS-CBN’s operations “until Congress has finally disposed of the franchise renewal bills.” They made the same promise to senators last February.

Justice Secretary Menardo Guevarra had also declared that ABS-CBN may be “allowed to continue to operate until such time that Congress has made a decision on its application.”

Cagayan de Oro City Rep. Rufus Rodriguez, meanwhile, defended Speaker Alan Peter Cayetano from critics blaming him for the non-renewal of the legislative franchise of ABS-CBN. “I believe the Speaker was sincere and in good faith in writing that letter to the NTC,” Rodriguez said.

He was referring to Cayetano’s letter to NTC asking the latter to issue ABS-CBN a provisional authority to continue broadcasting upon the expiration of its franchise last May 4.

After being issued CDO, ABS-CBN continues to broadcast through its SkyCable platform.

Rodriguez said Cayetano sent the letter “because we had no time to tackle the bills seeking the renewal of the ABS-CBN franchise before the Lenten adjournment in March.”

“But it turned out we could not rely on the NTC, which is part of the executive branch. In case of conflict between the executive and legislative branches, it is but natural for NTC to follow its executive bosses,” he said. “So now we have to do our job.”

“Let us consider my proposed joint resolution of Congress giving a provisional franchise to ABS-CBN up to June 30, 2022, when the life of the present 18th Congress expires. We should also consider my bill granting the network a new 25-year franchise,” he said.

But Deputy Speaker Paolo Duterte has taken a different position. He filed House Resolution 853 – co-authored by Reps. Abraham Tolentino and ACT-CIS Rep. Eric Go Yap – calling for an investigation into alleged franchise violations of ABS-CBN, including operating a pay-per-view channel through free-to-air signals.

“By charging the public with this pay-per-view Kapamilya Box Office channel through TV Plus, it has been gaining huge profits at the expense of the public while using the air frequencies provided by the government for free,” they declared in HR 853.

The lawmakers also maintained that the giant TV network violated the Constitution when its management reportedly took in foreign investors through Philippine Depository Receipts.

“The resulting foreign equity in ABS-CBN Corp., also violates RA 7042 (Foreign Investments Act of 1991) as amended by RA 8179, Executive Order 184 (Promulgating the Tenth Regular Foreign Investment Negative List) and Presidential Decree 1018 (Limiting the Ownership and Management of Mass Media to Citizens of the Philippines and for Other Purposes).”

Senate resolution

The Senate, for its part, adopted yesterday a resolution urging the NTC to reconsider its CDO on ABS-CBN.

Twelve senators voted in favor of the resolution, while nine including Sen. Pia Cayetano who earlier signed the resolution, abstained.

The senators who abstained explained the issue had already been filed with the Supreme Court, and that the matter of franchise renewal of ABS-CBN should emanate from the House of Representatives. 

The resolution stated that “now more than ever, in the middle of the biggest public health crisis of our generation, the Filipino people deserve access to up-to-date news provided by a free and unfettered media, and multiple sources of information provide the best pathways for truth to emerge.” “Equally important, the cease and desist order against ABS-CBN will impact on 13,000 of its workers, creating joblessness that could not be more ill-timed given the looming economic recession caused by the COVID-19 pandemic,” the resolution stated.

“I just wanted to manifest that we support the resolution. There were instances in the past despite the fact that a case had been filed before the Supreme Court on matters of national concern, national interest, or public interest that the Senate of the Philippines took on a position and approved a resolution,” Sen. Francis Pangilinan said.

He cited Executive Order 464 issued by the Arroyo administration prohibiting executive officials from testifying before Congress.

“If you would recall, EO 464 was President Arroyo’s executive order that prohibited executive officials from appearing before Congress. The Senate of the Philippines expressed its sense, or the Senate in a resolution, saying that EO 464 was contrary to the Constitution, notwithstanding the fact that the matter was before the Supreme Court,” he said.

He also cited a Senate resolution in 2006, also during the Arroyo administration, expressing the chamber’s position that the arrest of a newspaper columnist and a raid on a newspaper office was illegal even during a state of emergency.

“It was a sense of the Senate resolution despite the fact that the case was brought before the Supreme Court, the arrest of columnist Randy David and the raid on the Daily Tribune undertaking 2006 the Senate, in a resolution adopted, declared or at least expressed its sense that the arrest of Randy David and the raid on the Daily Tribune was unconstitutional and unlawful,” he said.

“For that, Mr. President, I believe there has been past incidence or there has been precedence where despite the fact that a matter is pending before the Supreme Court, the Senate of the Philippines has expressed its sense by way of adopting a resolution,” he added. “That’s why in this sense, I believe this is a matter of public interest and therefore I support the resolution.”

Journalists’ appeal

Journalists covering the Senate asked the House of Representatives to immediately renew the franchise of ABS-CBN.

“Whatever agenda or interests the congressmen — collectively or individually — may have, can never be greater than protecting press freedom, public access to timely and accurate information, and the right to a decent livelihood,” the Senate reporters said.

“The shutdown of the network not only adversely affected its employees but also those working in allied industries in this time of the pandemic. Our congressmen have set aside welfare of these people they were supposed to protect,” they said.

Dennis Uy not interested

Meanwhile, businessman Dennis Uy, a known supporter of President Duterte, has put to rest notions that his company is eyeing the acquisition of ABS-CBN Corp.

“Let me be clear once and for all and say that we, in Udenna Corp., have no intention to acquire ABS-CBN,” Uy, chairman and CEO of Udenna, said in a statement.

The Davao-based businessman clarified that being in the business of broadcasting is not part of the group’s corporate direction.

Uy said he recognizes the contributions of ABS-CBN to the Filipinos and that he hopes to see its problems resolved soon.

Uy has long been rumored as a possible buyer of ABS-CBN, especially with its media and entertainment expansion.

Udenna Group chief innovation officer and Dito CME Holdings chief operating officer Donald Lim, a former ABS-CBN executive, however, told The STAR last March that Uy’s media and entertainment expansion was apparently not going into the direction of broadcast for now, as its sights were on the digital space.

“We’re going to the digital space. Any content that we will pursue will be solely digital – 100 percent digital. I won’t touch broadcast, I won’t touch anything else,” Lim said. – Evelyn Macairan, Cecille Suerte Felipe, Paolo Romero, Richmond Mercurio