Controversy hounds RPN, Solar deal

Questions continue to be raised about the sales and marketing functions of government-owned television network RPN-9.

Former RPN 9 News and Current Affairs vice president Edwin Fargas, who has been hot on the trail of the network after he was reportedly forced to retire by the current management, claimed that the agreement signed between RPN and Solar Entertainment Inc. is anomalous.

In a statement, Fargas alleged that current RPN 9 president and general manager Edgar San Luis, along with board chairman Lino Barte facilitated the deal between the network and Solar without any public bidding.

Fargas has asked Malacañang and Congress to look into the deal and hold its implementation, pending full disclosure of all the details.

Fargas, through lawyer Virgilio Gener Jr., recently demanded from RPN management a copy of the sales and marketing contract between Solar and the network.

However, in a letter to Gener, RPN counsel Jose Zulueta denied the existence of the contract and clarified that no agreement has yet been entered into between Solar and RPN.

Fargas contends that the deal was already signed last year with Solar giving its commitment to infuse a total of P200 million in order to boost the cash-strapped network. He added that Solar had already infused P20 million in advance sometime mid-December which was used to pay-off the bonuses of the RPN staff.

A source close to the Cheng brothers of Solar confirmed that there was an agreement but denied that there was anything anomalous about the deal. Both San Luis and Barte or any official in RPN were unavailable for comment.

Fargas said that he is planning to file a complaint with the Securities and Exchange Commission about the failure of the network to disclose the details of the contract. "Is it so difficult for the parties concerned to reveal the details of the sales and marketing contract or are they simply afraid that such a disclosure would result in their prosecution for alleged graft and corruption," Fargas said.

Fargas, along with four other former officials of RPN 9 have filed separate cases against San Luis and Barte for illegal dismissal.