ABS-CBN bill authors: Network answered allegations, franchise should be granted
MANILA, Philippines — Some 91 lawmakers on Friday will decide on whether ABS-CBN Corporation — the Philippines’ biggest broadcasting company — should be granted a fresh legislative franchise, in what media groups and advocates stressed an issue on press freedom in the country.
Authors of bills seeking the grant of franchise to the embattled media giant asserted that questions and controversies lobbed against the network during the past hearings were answered and addressed.
“We, the 14 sponsors of various bills and resolutions seeking to renew the franchise of ABS-CBN Corporation, have found that ABS-CBN has fully complied with the provisions and requirements that will enable it to continue its long tradition of broadcast excellence in the service of the Filipino,” the lawmakers said in a joint statement.
READ: Joint statement of 14 sponsors of bills seeking to renew #ABSCBNfranchise ahead of expected voting of franchise committee this afternoon | @edupunay pic.twitter.com/ByQhVFdABK
— The Philippine Star (@PhilippineStar) July 10, 2020
The House Committees on Legislative Franchise and Good Government and Public Accountability on Thursday held a summation hearing on the past 12 sessions it held to discuss allegations and controversies related to ABS-CBN Corp. that is seeking the grant of a legislative franchise from the Congress.
RELATED: LIVE updates: House concludes ABS-CBN franchise hearing
After the last hearing, the lawmakers that penned bills in support of the grant of a franchise urged their colleagues to approve the renewal bills and called on House leadership to fast-track its passage, “so that the network may resume its broadcast operations and its much-needed services for the Filipinos nationwide.”
On ownership
Lawmakers spent at least three sessions discussing the nationality of ABS-CBN Chairman Emeritus Gabby Lopez. In one hearing, the network executive was asked to recite the Patriotic Oath which would supposedly show that Lopez is "100-percent" Filipino despite Philippine law allowing dual citizenship.
The Constitution holds that foreigners are prohibiting from owning and managing mass media, like ABS-CBN.
READ: DOJ: Gabby Lopez a Filipino citizen since birth
“The Department of Justice, the Bureau of Immigration, and the Securities and Exchange Commission have confirmed that ABS-CBN chairman emeritus Eugenio “Gabby” Lopez III is a natural-born Filipino and never lost the citizenship,” they said.
The lawmakers also stressed that the Securities and Exchange Commission cleared the Philippine Depositary Receipts issued by ABS-CBN Holdings do not grant its holders ownership of the media company.
On tax deficiencies
The Bureau of Internal Revenue also affirmed that ABS-CBN "has been regularly paying taxes. The Philippine Economic Zone Authority (PEZA) also clarified ABS-CBN’s subsidiary Big Dipper Digital Content and Design Inc. enjoyed tax incentives that were allowed under its laws."
Under current laws, tax incentives are valid deductions—and are enacted by the Congress itself.
READ: Fact check: Is it illegal for ABS-CBN to avail of tax perks?
“Conceptually, under our rules, tax avoidance is allowed as long as it is not abused. Using those exemptions allows us to avoid paying higher taxes... When we say not abused, there isn't really any fraud,” said Eleanor Roque, tax advisory head at P&A Grant Thornton, an auditing firm.
On content
Much of Monday’s hearing was spent on lawmakers airing their grievances against its news and current affairs team and its editorial content, often citing reports that involved them in accusing the network of “biased” reporting.
“ABS-CBN News observes the highest professional and ethical standards in journalism and holds itself and its people accountable for any mistake committed in the performance of its duties,” they said.
“ABS-CBN has championed public interest with a business focused on serving Filipinos all over the world through news, entertainment, and public service,” their statement read.
The lawmakers stressed that ABS-CBN has an unparalleled reach with 70 million Filipinos tuning in to its programs weekly, and it is now more than ever—in the middle of pandemic—that “we need a vibrant and independent source of information and news to tell the people what is going on.”
“It deserves the renewal of its franchise not only because it deserves so, but because we, the people, need its services to entertain and inform,” they added.
READ: Zarate: Congress has duty to uphold press freedom, no power to dictate news content
A vote for press freedom
For Deputy Speaker Rodante Marcoleta (Sagip party-list), the long hours the lawmakers spent, himself included, discussing the issues they raised against the network does not hold much weight.
“It is not the view of the SEC that matters here. It is not the opinion of the DOJ that will prevail here. Not even the Bureau of Immigration or other agencies,” he said in his summation of the hearings.
“It is the will of Congress that should be accorded due respect,” Marcoleta added.
House Speaker Alan Peter Cayetano again insisted that the franchise renewal bid of ABS-CBN is not a press freedom issue—despite discussion on wanting to dictate the manner of reportage touched on during hearings.
“How shall we decide on the claims that it will be a blow to press freedom if the owners of a private media corporation [are] being denied the privilege of using public airwaves for private business that protects their interest and supports their handpicked candidates while targeting those who oppose them?” Cayetano said in his statement on Thursday.
READ: At ABS-CBN franchise hearing , Cayetano warns of 'big business' influence on media, public opinion
In May, the Center for Media Freedom and Responsibility said that "[a] democratic government should even be more careful in shutting down a media enterprise because this would violate fundamental rights of free expression and media freedom enshrined in our Constitution."
It also warned that "the sorry state of ABS-CBN delivers a message to every media company. Should it be the pleasure of Duterte, this could happen to other news organizations; which would then spell the end of press freedom under this administration."
Voting at the House is expected at around 1 p.m. on Friday.
ABS-CBN Corp. stopped broadcasting on its TV and radio stations on May 5, 2020 after the National Telecommunications Commission issued a cease and desist order. The network's franchise had lapsed on May 4 without action by the House of Representatives.
ABS-CBN announces that it will cease operations of TeleRadyo, which has been in the red since 2020, by June 30.
In a disclosure, ABS confirms signing of deal that sees the broadcast giant enter into a joint venture with MVP's TV5. — Ramon Royandoyan
JUST IN: In a disclosure, ABS confirmed signing of deal that sees the broadcast giant enter into a joint venture with MVP's TV5. Details to follow. | via @monroyandoyan pic.twitter.com/x5nLTaad4U
— Philstar.com (@PhilstarNews) August 11, 2022
Rep. Mike Defensor (Anakalusugan Party-list) attempts to put the ABS-CBN franchise up for a vote in the plenary, saying it should be taken up as it is in the House's unfinished business.
The House rejects his motion, but he appeals this. House leaders later on commit to begin tackling its unfinished business beginning Monday. — Xave Gregorio
Rep. Vilma Santos-Recto (Batangas) has filed a bill seeking the renewal of the franchise granted to broadcast giant ABS-CBN.
Senate President Vicente Sotto III earlier filed a similar bill at the Senate, saying a majority of Filipinos get their news primarily from TV.
Franchise bills emanate from the House of Representatives.
Malacañang is leaving it up to Congress to decide on the new bill seeking to renew the franchise of television network ABS-CBN, which was forced to lay off thousands of workers after its franchise expired last May.
Presidential spokesman Harry Roque disagreed, saying the fate of the bill depends on lawmakers.
"Well, again, I beg to differ; that is a sole constitutional prerogative of Congress which must originate from the House of Representatives," Roque says at a press briefing. — Alexis Romero
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