Paolo Duterte, 2 solons seek probe into ABS-CBN’s ‘probable violations’ of franchise

MANILA, Philippines — Three members of the House of Representatives filed on Monday a resolution seeking an inquiry into “probable violations” of media giant ABS-CBN of its legislative franchise.

House Resolution No. 853 directs the House committee on legislative franchises, the panel where the 11 bills seeking ABS-CBN’s franchise renewal is pending, to conduct the said inquiry in aid of legislation.

According to the resolution filed by Deputy Speaker Paolo Duterte, House Appropriations Chairman Eric Yap, and Cavite 8th District Rep. Abraham Tolentino, ABS-CBN Corporation is “operating a pay-per-view channel through free-to-air signals in violation of its legislative franchise.”

“By charging the public with its pay-per-view Kapamilya Box Office (KBO) channel through ABS-CBN TV Plus, it has been gaining huge profits at the expense of the public while using the air frequencies provided by the government for free,” the lawmakers said.

“ABS-CBN Corporation’s operation of a pay-per-view channel through free-to-air signals despite being ordered by the National Telecommunication Commission (NTC) to refrain from doing so, and await the issuance of appropriate guidelines, is in violation of the terms of its legislative franchise,” they added.

In a Senate hearing in February, NTC Commissioner Gamaliel Cordoba himself said that ABS-CBN may be slapped with a fine of P200 per violation — not a revocation of its franchise — if indeed it continued with its pay-per-view services even without the approval of the commission.

The lawmakers likewise noted ABS-CBN’s issuance of Philippine Depository Receipts (PDRs) to non-Filipino citizens through ABS-CBN Holdings which, they said, is a violation of Section 11, Article XVI of the 1987 Constitution.

“The resulting foreign equity in ABS-CBN Corporation also violates Republic Act. No 7042 (Foreign Investments Act of 1991) as amended by Republic Act No. 8179, Executive Order No. 184 (Promulgating the Tenth Regular Foreign Investment Negative List), and Presidential Decree No. 1018 (Limiting the Ownership and Management of Mass Media to Citizens of the Philippines and for Other Purposes),” the lawmakers added.

On May 5, the NTC issued a cease and desist order against ABS-CBN, directing the network to stop its broadcast operations since its franchise had already expired.

The cease and desist order came two days after Solicitor General Jose Calida warned NTC against issuing a provisional authority to operate to ABS-CBN.