ABS-CBN fallout: Legislator seeks probe of all major media firms’ PDRs

MANILA, Philippines—In the interest of “equity, equality, and fairness” following the denial of ABS-CBN’s franchise bid over the network’s supposed violations, a lawmaker has filed a resolution seeking an investigation of Philippine Depositary Receipts (PDRS) issued to foreigners by all major broadcasting firms in the country.

In House Resolution No. 984, Nueva Ecija Rep. Micaela Violago said that one of the issues raised during the hearings on the ABS-CBN franchise was whether the network violated the Constitution requiring 100 percent Filipino ownership and management of mass media when it issued PDRs to foreigners, which supposedly allowed non-Filipinos to own the network.

Violago is one of the authors of the bills that sought to grant ABS-CBN a 25-year franchise.

“In the interest of equity, equality and fairness, it is but proper that the other broadcasting companies’ issuance of PDRs to non-Filipinos be also looked into,” Violago said in the resolution.

During the hearings on the ABS-CBN franchise, Violago suggested investigating the PDRs of other major broadcasting networks “the way” the lower chamber was investigating that of ABS-CBN.

This came after Violago took note of the observation of Bulacan Rep. Jose Antonio Sy-Alvarado that the PDRs submitted by GMA-7 is “similar” to that of ABS-CBN.

Earlier, Sy-Alvarado sought copies of PDRs issued by major mass media and broadcasting companies in the country to see if these companies have the same PDRs.

READ: Solon suggests probing PDRs of other major broadcasting networks

The Securities and Exchange Commission (SEC) earlier said that as far as it is concerned, there’s no basis to say that ABS-CBN violated rules on the issuance and selling of PDRs to the public.

READ: SEC has no basis to say ABS-CBN violated regulation on PDRs – Amatong

Critics of ABS-CBN have said that the issuance of PDRs to foreigners violated the Constitution, which requires 100 percent Filipino ownership and management of mass media companies in the country.

However, ABS-CBN had said that ABS-CBN Holdings’ PDRs were evaluated and approved by SEC and the PSE before their public offering.

Albay Rep. Edcel Lagman had also said that PDRs do not dilute 100 percent Filipino ownership of mass media firms.

Lagman explained that PDR holders do not enjoy voting rights and full beneficial ownership, thus “they do not dilute the 100 percent ownership and management of mass media.”

TSB