RPN-9 or Radio Philippines Network Inc. denied claims it has entered into a P200-million "sweetheart deal" with Solar Entertainment Inc.
The management of RPN-9 filed with the Securities and Exchange Commission, its opposition to the application by a former company executive for a writ of injunction that would prevent the network from implementing the P200-million deal.
Edwin L. Fargas, former RPN-9 vice-president for news and public affairs accused management of skirting bidding procedures to favor Solar Entertainment.
RPN-9 management, however, belied Fargas' claims.
"No such contract has been finalized, completed and made effective and binding," management told the SEC, adding that even in case such contract its effective, Fargas has no legal right to restrain its enforcement since he is no longer a stockholder in good standing.
The management said Fargas' charges that he was left in the dark as to how his investments is being handled, that a public bidding was not conducted, that respondents' reluctance to produce the contract hints of other sweethearts deals given to Solar, that RPN-9 is a target for privatization, "is but an apprehensive imagination" which does not violate or invade any right of Fargas as a stockholder.
Management added that it is "wild and speculative" for Fargas to assert that public bidding is needed for a proposed contract of sales and marketing agreement with RPN-9.
"There is no such requirement imposed upon by any law. RPN-9 is a private corporation as held by the government thru its Presidential Commission on Good Government (PCGG) which holds 72 percent of the outstanding capital stock of RPN-9."
There is also no basis for Fargas' fear of a "sweetheart deal," with Solar Entertainment, management said. Management said every contract entered into goes through a meticulous process: it must first be submitted to the RPN board which deliberates the proposal; after approval, it its submitted to the PCGG for evaluation and approval; it then goes to the Office of the President for final review and approval.
Moreover, the planned privatization of RPN-9 has been deferred and if ever, will not be affected by the contract since it is the Department of Finance and the Asset Privatization Trust which will undertake the sale.