House panel rejects ABS-CBN bid for franchise

July 10, 2020

Voting 70 against 11, the House committee on legislative franchises on Friday rejected the franchise application of the  ABS-CBN Broadcasting Corp. for violating its old franchise.

Palawan Rep. Franz Alvarez, chairman of the House committee on legislative franchises, said two lawmakers inhibited and one abstained from the voting.

Congressmen who voted yes backed the adoption of the resolution of the technical working group (TWG) denying the franchise of ABS-CBN Channel 2.

“Those who voted yes 70, No 11, two inhibited and one abstained. That is the total. The resolution denying the ABS-CBN franchise application is hereby adopted,” Alvarez said.

The resolution was titled “Resolution Denying the Franchise Application of ABS-CBN Corporation to Construct, Install, Establish, Operate and Maintain Radio and Broadcasting Stations in the Philippines.”

The TWG pointed out that ABS-CBN Channel 2 violated its expired franchise because its former  chairman Eugenio Lopez III was both a Filipino and American citizen.

The TWG also cited issuing Philippine Depositary Receipts (PDRs) to foreigners, meddling in politics, tax avoidance schemes; less than exemplary labor practices, inappropriate program content among others in denying the franchise of ABS-CBN Broadcasting Corp.

“Such a scenario is totally inconsistent with the nature of legislative franchises as a mere privilege and never a matter of right.  Wherefore, in view of the foregoing, the technical working group respectfully recommends the denial of the franchise application of ABS CBN Corporation,” the TWG report stressed.

The TWG report this “is in no way related to press freedom.”

“It is what it is — a denial of a privilege granted by the State because the applicant was seen as undeserving of the grant of a legislative franchise. By no means can this franchise application be related to press freedom. If it were so, then all applicants for legislative franchises covering mass media could simply claim such freedom and force the hand of this Committee each time,” the resolution said. DMS