House official says renewal of ABS-CBN franchise is ”not right, but privilege”

January 2, 2020

The House leadership said the renewal of ABS-CBN's congressional franchise to continue its operations is a privilege under the law.

“We should all be reminded that under the law, the grant of a franchise is not a right, but a privilege,” said Palawan Rep. Franz Alvarez, who chairs the House committee on legislative franchises.

Alvarez said ABS-CBN it would be fair and objective in reviewing its application for the renewal of its franchise, which expires this March.

“The advice of Speaker Alan (Peter Cayetano) to us was to make sure that we would be always fair and impartial in reviewing the application of ABS-CBN, or the application of any other public utility, for that matter. At the same time it is Congress' duty to accept complaints and hear issue brought up in any contain or objection,” said Alvarez.

“This is why we have to hear all sides, and find out if ABS-CBN violated the provisions of its franchise,” Alvarez added.

Under Republic Act (RA) No. 3846, radio and television broadcast stations are required to seek a franchise from Congress before being allowed to operate.

Alvarez said since the issue is the grant of a franchise to ABS-CBN, the constitutional right to press freedom is a separate concern.

“The issue involves the franchise renewal of ABS-CBN. There is no attempt to muzzle or control the media here so do not try to make this a press freedom issue when it is not,” said Alvarez.

“Does the President and many others who have made statements against Abs Cbn's election coverage and election ad placement system, have a legitimate grievance against ABS-CBN? Did ABS-CBN violate the provisions of its franchise? Can ABS-CBN credibly defend its privilege of being granted a renewal of its franchise? These are just some of the questions that our committee will seek to answer when we conduct hearings on the matter once Congress resumes session three weeks from now,” Alvarez said.

Alvarez noted that the Supreme Court (SC) in the case of Radio Communications Philippines Inc. versus National Telecommunications Commission said the grant of a franchise is “merely a privilege emanating from the sovereign power of the state and owing its existence to a grant, is subject to regulation by the state itself by virtue of its police power through its administrative agencies.”

Meanwhile, Albay Rep. Edcel Lagman said in a House Resolution to be filed on January 6, he will urge the House committee on legislative franchises to report out without delay for plenary action a consolidation of nine pending bills proposing the renewal of the media giant’s franchise.

“Any deliberate and arbitrary denial of the extension of ABS-CBN’s franchise will render jobless 10,955 regular and non-regular employees as well as talent and project-based workers, and freeze P84.6 billion assets and investments. Selling ABS-CBN to an apparent Duterte crony is not an option,” Lagman pointed out.

Lagman said “the freedom of the press is enshrined in the Bill of Rights and franchises as private bills exclusively emanate from the House of Representatives.”

He said “the unwarranted non-extension of ABS-CBN’s franchise is also a violation of due process and the equal protection clause guaranteed by the Constitution.”

“The President must uphold the freedom of the press and respect the independence of the Congress, particularly the House of Representatives where franchise bills originate, in granting and extending franchises,” Lagman explained.

Lagman said the leadership and membership of the House of Representatives, particularly the House committee on legislative franchises, “must act independently in exercising exclusive congressional jurisdiction on the grant of franchises, and must not be cowed by the President’s wanton rantings.” DMS