March 30, 1995
Former President Fidel Ramos signed Republic Act (RA) 7966 which approved ABS-CBN Broadcasting Corporation a 25-year franchise to construct, install, operate and maintain television and radio broadcasting stations in the Philippines, which took effect on May 4, 1995, 15 days after the law was signed.
September 11, 2014
Isabela Representative Giogidi Aggabao filed House Bill 1997, an immediate renewal of the franchise, under the 16th Congress. However, on the first attempt to renew ABS-CBN’s franchise, it was not passed at the committee level.
May 6, 2016
Through a Taguig court, former Senator Alan Cayetano secured a temporary restraining order barring the airing of TV commercials against then presidential candidate Rodrigo Duterte. The said ads are said to be paid by Senator Antonio Trillanes IV.
June 11, 2016
Due to time constraints, ABS-CBN decided to withdraw the application, filed in September 2014, with the intent of seeking renewal in the 17th Congress.
November 10, 2016
Nueva Ecija Second District Representative Micaela Violago filed House Bill 4349, the second attempt to the renewal of ABS-CBN’s franchise, to the 17th Congress. However, it remained pending at the committee until the end of 17th Congress on June 3, 2019.
November 8, 2018
President Rodrigo Duterte slammed ABS-CBN for not showing his political advertisements during the 2016 Presidential Election campaign period and threatens the company that he will object to the renewal of its franchise in 2020.
July 1, 2019
Violago refiled House Bill 4349 to the 18th Congress to extend ABS-CBN’s franchise with 20 other House members as co-authors.
July 28, 2019
Senator Ralph Recto filed a similar bill to extend ABS-CBN’s franchise for another 25 years.
October 29, 2019
House Speaker Cayetano announced that the House Committee on Legislative Franchise is set to deliberate on the franchise renewal.
December 3, 2019
In a speech before the new Malacanang officials, President Duterte threatened that he will personally “see to it” that ABS-CBN will be out of business by 2020.
December 4, 2019
Palawan Representative Franz Alvarez, chairman of the House Committee on Legislative Franchise, said that they will no longer tackle the franchise renewal for the remainder of 2019. House Speaker Cayetano also said that “there is enough time” for the measures to be deliberated in early 2020.
December 30, 2019
President Duterte tells the Lopezes to sell the network to a new owner due to Congress unlikely to renew their franchise.
January 6, 2020
Albay First District Representative Edcel Lagman filed House Resolution 639, urging the Committee on Legislative Franchises to report out without further delay for plenary action a consolidated version of eight pending bills proposing for a 25-year franchise renewal of ABS-CBN Corporation. As of February 20, 2020, a total of 91 lawmakers have signed the resolution.
January 27, 2020
Six representatives (Carlos Zarate, Ferdinand Gaite and Eufemia Cullamat of Bayan Muna, France Castro of ACT Teachers, Arlene Brosas of Gabriela and Sarah Elago of Kabataan) filed House Bill 6052, the 9th bill seeking for the renewal of ABS-CBN franchise. The bill remains pending at the committee level since February 3, 2020.
January 30, 2020
Baguio City Representative Mark Go filed House Bill 6138, the 10th bill seeking to renew the ABS-CBN franchise. The bill remains pending at the committee level since February 5, 2020.
February 10, 2020
Solicitor General Jose Calida filed a quo warranto petition against the network as he claims that it has “highly abusive practices,” including foreign ownership and lack of operation permits for TV Plus and KBO Channel.
ABS-CBN claims that it complies with the law, and Calida’s petition is “without merit” and “an effort to shut down” the network.
February 12, 2020
Vice Chair of the House committee on Legislative Franchises Isabela Rep. Antonio Albano Jr., apologizes to ABS-CBN employees for the “anxiety” caused by delay of the case hearings and discussion on the 11 pending franchise renewal bills.
Cayetano said that the Congress will conduct an “impartial hearing” for the cases raised.
February 18, 2020
Calida asks the Supreme Court for a gag order on the quo warranto case which prohibits the parties and persons from publicly discussing the issue, which he deems to influence public opinion.
February 19, 2020
Federation of International Cable TV and Telecommunications Association of the Philippines (FICTAP) chair Estrellita Tamano claimed that ABS-CBN’s “black box” has 13 channels with one frequency each—which violates their law on “one channel, one frequency” since they claim that ABS-CBN has only one franchise. Tamano added that the network has unlicensed pay-per-view options.
February 20, 2020
ABS-CBN CEO and president Carlo Katigbak admitted the network’s imperfections and willingness to correct its shortcomings.
February 24, 2020
Justice Secretary Menardo Guevarra stated that the Congress can authorize the NTC to issue a provisional authority for ABS-CBN “to continue operating subject to Congress’ eventual disposition of their renewal of the application.” He added that they can operate under “equity considerations.”
Guevarra emphasized that May 4, 2020 is the franchise expiration date.
ABS-CBN apologizes to President Duterte for airing an political opposition video by Trillanes.
February 26, 2020
Alvarez and Cayetano requested NTC Commissioner Gamaliel Cordoba to grant a provisional authority to ABS-CBN, along with its subsidiaries and affiliates: ABS-CBN Convergence, Sky Cable Corporation, and Amcara Broadcasting Network, Inc.
Former Chief Justice Reynato Puno said that it is not possible due to the 2003 Supreme Court Ruling on the need of an existing license to operate and the Republic Act No. 7925, where Section 16 states that “no person shall commence or conduct the business of being a public telecommunications entity without first obtaining a franchise.”
The President accepted the apology of ABS-CBN on airing the opposition video.
March 2, 2020
Senate Concurrent Resolution No. 7 was filed by nine senators to encourage NTC in allowing ABS-CBN to continue its operations despite its pending renewal, expressing its sentiments on the network’s employees, the economy, and the leniency on other franchise holders on their pending renewal.
March 5, 2020
Lawyer Larry Gadon filed a “writ of prohibition” against the request of Alvarez and Cayetano to Cordoba since he said it violates the doctrine of separation of powers. Moreover, he cited the 2003 Supreme Court Ruling on the need for an existing franchise to operate.
March 9, 2020
Albay 1st district Rep. Edcel Lagman stated that the March 10 hearing on ABS-CBN’s franchise renewal appears to be “cosmetic and inconsequential.” He said that the officials of the network were not called to the hearing.
March 10, 2020
Cordoba agreed to issue a provisional authority for ABS-CBN to continue its operations based on equity during the first hearing for the network’s franchise renewal.
March 11, 2020
The last session day before the almost two-month break of the Congress from March 14 until May 3. ABS-CBN is allowed to operate until May 4.
April 29, 2020
FICTAP wrote a letter to the NTC, opposing its decision to grant provisional authority to ABS-CBN.
May 3, 2020
Calida says that the NTC may face charges under the Anti-Graft and Corrupt Practices Act if they give provisional authorities to ABS-CBN.
May 4, 2020
Presidential Spokesperson Harry Roque said that President Duterte will stand by the decision of the NTC on granting ABS-CBN a fresh 25-year franchise.
May 5, 2020
NTC issued a cease and desist order on ABS-CBN for its expired legislative franchise and the Republic Act No. 7966. Guevarra stated that it is “immediately executory.”
The order called for the discontinuation of the operations on the network’s television and radio broadcasting stations.
REFERENCES: Rappler, Inquirer.net, CNN Philippines, ABS-CBN News, Philstar
DEBUNKING THE CLAIMS AGAINST ABS-CBN VIOLATIONS
Solicitor General Jose Calida filed a quo warranto petition at the Supreme Court on the violations allegedly committed by the country’s biggest media network, ABS-CBN, under the Republic Act No. 7966 and Republic Act No. 8332, which the latter claims on following the necessary procedures and laws before taking action.
(a) On the foreign ownership restriction
THE CLAIM: Solicitor General Jose Calida claimed that ABS-CBN contravened on foreign ownership restriction by issuing Philippine Depository Receipts (PDRs) to foreigners for control, making it seem that the transactions are done within the Filipino corporation. Furthermore, he claims that this breaches under Section 11, Article XVI of the 1987 Constitution stating on mass media management and ownership being limited to Filipino citizens.
THE TRUTH: Corporate lawyer and former president of Securities and Exchange Commission (SEC) Francis Lim responded that the PDRs aren’t stockholders but are share dividends from the distributor. The PDRs under the ABS-CBN Holdings’ went on a process under the SEC and the Philippine Stock Exchange (PSE), in which they approve on. During the Public Services Committee’s hearing, SEC Commissioner Ephyro Luis Amatong claimed that no violations or any illegal actions were noted from the ABS-CBN franchise deeming the franchise to be in compliance with regulations and laws.
The same alleged violation was also filed against Rappler last January wherein the media company violated rules on foreign ownership restrictions in having an illegal transaction with Omidyar Network (ON).
(b) On Violation from the National Telecommunications Commission (NTC)
THE CLAIM: SolGen Calida claimed that ABS-CBN has violated rules under the NTC through the launch of Kapamilya Box Office (KBO) and TV Plus subscription without the latter’s approval thereby, pushing ABS-CBN to its shutdown. In addition, the media network is said to ask subscribers to pay ₱30 to view a specific show or movie which Calida stated that it should be free in the channels resulting ABS-CBN to take money from 1.2 million TV plus consumers by being persuaded to purchase television subscriptions—including pay-per-views (PPV).
THE TRUTH: NTC Commissioner Gamaliel Cordoba noted that if ABS-CBN would be found guilty of committing the alleged violation, they would be only fined for PHP 200 per violation based on the Public Services Act to which was agreed by Senator Ralph Recto.
In a letter sent by SolGen Calida to ABS-CBN in 2015, it was written that ABS-CBN should withhold from offering any television pay subscriptions until NTC’s proper guidelines are finalized. This was clarified by Cordoba that this only referred to specific shows under PPV to not be offered by the media network. Additionally, Cordoba elaborated on the approval of the PPV under the network’s franchise “to engage in a conditional access system” after consulting with the Department of Justice (DOJ).
(c) On paying taxes in BIR
THE CLAIM: ABS-CBN was closed down due to failure to file their taxes.
THE TRUTH: Bureau of Internal Revenue (BIR) Regular LT Audit Division 3 Head Simplicio Cabantac Jr. stated in the Senate hearing that ABS-CBN has been regularly paying their taxes. From 2016 to 2019, the amount paid by the media network reaches over ₱14.39-billion. BIR deputy commissioner Arnel Guballa stated that ABS-CBN has four compromised agreements to settle their dues which was approved by the Court of Appeals (CTA): (1) BIR accepted the network’s offer of paying ₱152.4 million as a “judicial compromise amount”; (2) In July 2019, the CTA settled with ABS-CBN in paying ₱16.1-million as a “doubtful validity of respondent’s [BIR] assessment;” (3) the ABS-CBN Film Production will pay a compromise amount of ₱3 million; and (4) the ABS-CBN Publishing will pay a compromise amount of ₱30 million. Thus, making them one of the biggest taxpayers of the country.
REFERENCES: ABS-CBN News, Manilla Bulletin, Philstar, Inquirer.net, CNN Philippines
