PCOO pushes for renewal of IBC 13's franchise

MANILA, Philippines — The Presidential Communications Operations Office is pushing for the renewal of the franchise of state-run Intercontinental Broadcasting Corp. channel 13 to make it attractive to prospective buyers and to allow it to settle its obligations.

PCOO Secretary Martin Andanar admitted that the network, which was sequestered by the government after the ouster of the late President Ferdinand Marcos, is in "dire straits" and has yet to settle some tax dues and retirement pay it owes to former employees.

"IBC 13 is a really in dire straits... its operation is in the red and we inherited several problems from past administrations and one of them is the taxes it owes the BIR (Bureau of Internal Revenue) and realty taxes it owes Quezon City, as well the money it owes to its retired employees. They remain unpaid and it amounts to about P1.4 billion," Andanar told state-run Radyo Pilipinas last Friday.

"If its franchise expires in three or four years, it won't be that enticing to the buyer. So which means, we really need to renew the franchise of IBC 13, which is a government station, to another 25 years and then we sell it," he added.

IBC President Katherine de Castro said the franchise of the network would expire on 2025.

Andanar said IBC 13 could not be sold if it has no tax clearance. Without tax clearance, the station's franchise cannot be renewed.

Andanar said the BIR has granted IBC 13 tax clearance.

"If you don't have a franchise, it (IBC 13) can't be sold. You won't have money to settle the money you owe the BIR. So really, it was a good — actually a tit-for-tat, you know...it was a good negotiation with the BIR so we thank the commissioner for giving the IBC this tax clearance so we can get the extended franchise," he added.

Andanar said the administration already has a plan on how to privatize the financially-troubled network.

"We already have a solution on how to privatize it with the help of the Office of the Executive Secretary and the (Privatization and Management Office), so this is already moving," he said without elaborating.

IBC 13 used to be owned by Roberto Benedicto, a close friend of Marcos. The government sequestered the network after the 1986 People Power Revolution.

In 2016, the administration of former President Benigno Aquino III approved the privatization of IBC 13, saying its functions overlap with that of government television station PTV 4.  

The previous administration also noted that IBC 13 was in financial distress, posting a net loss of P45.26 million from 2010 to 2014 and receiving operational subsidies amounting to P23.56 million in 2015. The privatization would lead to the infusion of additional capital to revitalize the network.

Recent reports said businessman-politician Luis “Chavit” Singson has expressed interest to buy the network.