MANILA, Philippines—House leaders, including Speaker Prospero Nograles, are seeking a review of franchises granted by Congress following reports and complaints that some have changed ownership, or worse, some franchisees acted as “dummies” for other entities.

Nograles has instructed Iloilo Representative Ferjenel Biron, chair of the House committee on legislative franchises, to look into allegations that a number of franchises have changed ownership while others concealed the owners’ true identities when they applied for congressional licenses.

Nograles told Biron to "find out if these franchisees have been diligently complying with the terms and conditions pertinent to their legislative franchises including the submission of annual reports to Congress."

“[Agusan] Representative Rodolfo Plaza was right when he sought for such a review because granting a franchise is an act of Congress which can also be taken back or revoked when the grantee does not adhere to the mandate of the franchise," Nograles said.

Plaza, over the weekend, proposed a review of congressional franchises granted to telecommunication service providers, broadcast media companies, cable TV firms, commercial airlines and public utilities.

“We have been receiving complaints that certain franchisees have since wholly sold themselves to other private entities without obtaining prior approval of Congress," Plaza said.

Franchisees should secure the approval of Congress “before they can transfer their legislative privileges to other parties,” he said.

There were reports that some firms “deliberately concealed their true ownership when they first sought legislative franchises, thus blatantly misrepresenting themselves,” Plaza added.

He also sought a review of every franchise granted by Congress to private corporations, saying some of them appear to have been remiss in complying with the terms and conditions of their franchises.

"Franchisees are also supposed to sell a minimum amount of equity to the investing public and list their shares in the local stock exchange,” Plaza said. He warned that delinquent franchisees risk losing their congressional grants.

They are also “supposed to submit annual reports to Congress, but a number of them have not offered any such report at all," he added.

Plaza said they plan to impose fines of up to P50,000 per day on franchisees who fail to submit their annual reports to Congress, as mandated by law.