Bill seeking to revoke SMNI franchise approved by House on 2nd reading

MANILA, Philippines — A bill that seeks to revoke the franchise given to Sonshine Media Network International (SMNI), in light of several violations found by a House of Representatives panel, has been approved on second reading.

During the plenary session on Wednesday, House Bill No. 9710 by 1-Rider party-list Rep. Ramon Rodrigo Gutierrez was approved via viva voce or voice voting.

The second reading approval came just a day after the House committee on legislative franchises headed by Parañaque 2nd District Rep. Gus Tambunting approved the bill and the subsequent committee report.

Earlier, in a press briefing at the Batasang Pambansa complex, Tambunting said that the bill seeking SMNI’s franchise revocation would need to go through the processes that a regular bill does — approved by the House and the Senate before being forwarded to the President’s signature — before it is enforceable.

“Yes, this needs to pass through the Senate first, this will pass the regular process. We need to read this at the plenary, second reading, third reading, and then it will be brought to the Senate,” Tambunting said.

READ: SMNI will get chance to answer issues as it faces losing franchise – House rep

SMNI, operating as Swara Sug Media Corporation, was initially investigated by the House after Laban Kasama ang Bayan host Jeffrey Celiz wrongly claimed that Romualdez spent P1.8 billion for trips in 2023.

House Secretary General Reginald Velasco then clarified that the total travel cost for all House members and their staff from January 2023 to October 2023 was only P39.6 million.

In his sponsorship speech before the second reading approval, Tambunting highlighted that the committee found SMNI committing several violations as it did not only spread misinformation and disinformation, but also engaged in “blatant red-tagging” of past and present government officials, without presenting evidence.

“Media broadcasting is a powerful medium that provides the public with crucial and vital information on current events, government workings, and other significant reports that affect the daily lives of the people […] It is therefore important that broadcasting, especially news reporting, is fair and accurate,” he said.

“During the course of six hearings spanning five months, the Committee also discovered that Swara Sug Media Corporation committed grave violations of the terms of its franchise, thereby warranting its revocation. Sections 4 and 7 of RA 11422 were violated through the blatant red tagging, fake news peddling and violations of broadcasting standards,” he added.

During the hearings on the issue, other possible violations of SMNI’s franchise were pointed out by Surigao del Sur 2nd District Rep. Johnny Pimentel:

• Section 4 which mandates SMNI or Swara Sug Media Corporation — the legal name of SMNI — to “provide at all times sound and balanced programming
• Section 10 which mandates SMNI to inform Congress about the sale of the company to other owners or other major changes
• Section 11 which mandates the SMNI to offer at least 30 percent of its stock to the public

Tambunting also mentioned Section 12 of the SMNI franchise as among those violated by the network.

“Sections 10, 11 and 12 were also violated when changes in ownership were not reported to Congress, when the franchisee failed to comply with the dispersal of ownership requirement, and when it failed to comply with reportorial requirements for almost three decades,” he said.

“Therefore, on behalf of the Committee on Legislative Franchises, I respectfully submit to this Honorable Committee, the approval of House Bill No. 9710 reported under Committee Report No. 1024,” he added.