CONGRESS REJECTS NEW FRANCHISE FOR ABS-CBN

THE Philippine Congress this Friday, July 10, 2020, voted overwhelmingly to deny a new franchise for the Lopez-owned ABS-CBN, after its original franchise expired last May 4, 2020.

After 13 consecutive hearings jointly conducted by the committees on Legislative Franchise and Good Government and Public Accountability, members of Congress this afternoon voted on the resolution, “… Denying the Franchise Application of ABS-CBN Corporation to Construct, Install, Establish, Operate, and Maintain Radio and Broadcasting Stations in the Philippines.”

Of the 85 members of Congress who participated in today’s voting, an overwhelming 70 members voted “Yes” to the resolution while only 11 congressmen sided with the company by voting “No.”

On the other hand, there was also one abstention while two lawmakers, in the end, decided to inhibit themselves from the proceedings.

An exhaustive, 40-page report prepared by the franchise committee’s ‘Technical Working Group’ laid down six major grounds for the framing of the resolution.

It found out that:

Eugenio ‘Gabby’ Lopez III is an American citizen with “doubtful Filipino citizenship and allegiance to the Philippines;”

As such, ABS-CBN had possibly violated the Philippine Constitution’s prohibition on foreign ownership of any Philippine mass media;

ABS-CBN committed “numerous violations” of the terms of its expired franchise;

ABS-CBN resorted to “questionable and unjust, if not immoral, tax avoidance schemes;”

ABS-CBN used of “dummy” or “front” companies; and,

ABS-CBN has a record of “less than exemplary labor practices.”

Of the TWG’s three committee members, only Cebu Marikina second district representative, Estella Luz Quimbo, “dissented” or favored ABS-CBN, while Rep. Pablo John Garcia, third district, Cebu City, and, Rep. Xavier Jesus Romualdo of Camiguin, approved the TWG’s recommendation to the committee.

On Wednesday, Pinoy Exposé reported that ABS-CBN’s chance of getting a new franchise is not a sure thing after an initial canvass of votes of lawmakers showed that 57 of them would vote to deny another 25-year franchise for the company.

The surprising development in today’s session, however, is that the company’s support in Congress had further thinned with only 11 actually voting in its favor compared to the 25 congressmen who initially manifested their desire to side with ABS-CBN on Wednesday.

The franchise committee, chaired by Palawan first district representative, Franz ‘Chicoy’ Alvarez, also assured Congress and the public that the denial “is in no way related to the freedom of the press.”

“It is what it is,” the committee said, “a denial of a privilege granted by the State because the applicant was seen as undeserving of the grant of a legislative franchise.”

“By no means can this franchise application be related to press freedom,” the TWG report further stressed.

“If it were so, then all applicants for legislative franchises covering mass media could simply claim such freedom and force the hand of this committee each time.

“Such a scenario is totally inconsistent with the nature of legislative franchises as a mere privilege and never a matter of right,” it added.

With the denial, the ABS-CBN franchise would no longer reach the plenary level, much so, be transmitted to the Senate.

As a matter of course, ABS-CBN can appeal the decision or apply for a new franchise (updated: 9:36am, July 11, 2020).