The National Telecommunications Commission (NTC) said on Thursday, Aug. 11, it would carefully study and scrutinize the partnership deal between TV5 Network Inc. and ABS-CBN Corp., amid the latter’s non-renewal of franchise stemming from violations raised during congressional hearings in 2020.
In an interview over Radyo Pilipinas, NTC Commissioner Gamaliel Cordoba said they will look into the “investment agreement” inked on Wednesday.
“Kailangan po natin itong busisiing mabuti dahil madami pong lumabas na violations ang ABS-CBN noon pong nakaraang pagdinig ng renewal ng kanilang franchise,” he said.
“Kung maalala ninyo, 18th Congress, around 2020 po iyan, at nagresulta po ito sa hindi pagka-renew ng kanilang (ABS-CBN’s) prangkisa,” he added.
Cordoba said the NTC issued a memorandum stipulating the rules and regulations on commercial agreements entered into by authorized radio and television stations.
“Ang isinasaad po nito, in addition to the conditions and limitations provided in the grantee’s legislative franchise on mergers and acquisition, yun pong franchise grantee shall not enter into mergers, joint ventures, sale or any commercial agreements on the matters within the commission’s mandate and jurisdiction.
“Katulad po nito, transfer of authority and sale, use of regulated — NTC-regulated — equipment to those who have outstanding obligations to the national and local government, dapat po… ang franchise grantee ay hindi po makikipag-enter ng commercial arrangement sa isang entity na may obligasyon sa national and local government,” he explained.
Cordoba stressed parties and entities that transact with franchise grantees shall secure clearances from appropriate government agencies.
He said, “For this purpose po, the grantee shall ensure all parties it transacts or enters into agreements with obtained clearances to that effect from the appropriate government agencies – partikular na po diyan ang Department of Finance dahil nandoon po ang BIR (Bureau of Internal Revenue) and Bureau of Customs; sa National Telecommunications Commission; and sa Securities and Exchange Commission.”
Cordoba added, the Department of Justice, Land Registration Authority, and the Philippine Competition Commission will assist in the investigation of violations raised against ABS-CBN during the 18th Congress, while the NTC has the legal mandate on the ABS-CBN-TV5 business deal.
“Ang nakikita ko po na para pong kailangan nating tingnan is mayroon po kasi silang mga violations. So, hindi po sila makakuha ng sariling prangkisa, so ang ginagawa po nila is sasakay po sila dito sa prangkisa po ng TV5. Pero hanggang ngayon po ay bitbit po nila ang kanilang mga violations kahit dati pa po iyon,” he continued.
In a joint statement, the two media networks said the deal allows ABS-CBN to acquire 6.46 million TV5 primary common shares, representing 34.99 percent of the total voting and outstanding capital stock of TV5, for P2.16 billion.
The deal also allows ABS-CBN to acquire additional TV5 shares, to increase its stake in the latter to 49.92 percent after 8 years. –KC
