The Securities and Exchange Commission (SEC) has junked the petition for a temporary restraining order (TRO) against RPN-9 or Radio Philippines Network Inc. which is being charged with signing a P200-million "sweetheart deal" with television and movie production outfit Solar Entertainment Inc.
The petitioner for the TRO, Edwin L. Fargas, a former RPN-9 executive lost by default after failing to appear before the panel hearing of the SEC. Instead, his petition for a writ of injunction will be heard on Feb. 7.
The SEC said with his no-show during the scheduled hearing last Feb. 1, Fargas waived his right to present evidence against the management of RPN-9.
The management of RPN-9 filed refuted Fargas' charges.
Fargas said that the management of RPN-9 acted in bad faith when not only did it deny finalizing the contract with Solar, but also when it refused to divulge the details of the sales and management contract it signed with Solar last December.
He said that management did not conduct a public bidding as required, but gave Solar preferential status by throwing in the contract, additional free airtime.
"No such contract has been finalized, completed and made effective and binding," management told the SEC, adding that even in case such contract is 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 handed, that a public bidding was not conducted, that respondents' reluctance to produce the contract hints of other sweetheart 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.