President Rodrigo Duterte on Monday night said he would not allow the National Telecommunications Commission (NTC) to give ABS-CBN a license to operate even if the media giant is given a new broadcast franchise by Congress.
Duterte said ABS-CBN should first settle its unpaid obligations, even as the Lopez family behind the television network already said it has no outstanding loans with the government-owned Development Bank of the Philippines (DBP) as the President hinted before.
"Congress is planning to restore the franchise. Wala akong problem kung i-restore ninyo (lawmakers), but I will not allow them to operate. I will not allow the NTC to grant them the permit to operate," Duterte said.
"Unless and until the Lopezes pay their taxes, I will ignore your franchise and I will not give them the license to operate," he added in his weekly televised address.
“That’s foolishness, it’s like giving them a prize for committing criminal acts,” the President said.
Lopez Holdings Corp., which owns ABS-CBN, said as early as 2017 that it had no outstanding loans with the DBP or other government financial institutions.
At that time, Duterte blasted the company, formerly known as Benpres, over its supposed outstanding debt with the state-owned lender.
"I will not name the person, but 'yung mga company nila noon — Benpres and about six other companies — may utang sila sa DBP. At ang utang nila, umabot ng… to finance this… pera ng tao, gagamitin nila to finance their business pero kanila 'yung kita," Duterte said four years ago.
The holdings firm owns major shareholdings in television network ABS-CBN and in the power, property, and telecommunications sectors.
In July last year, an overwhelming majority of the House committee on legislative franchises ruled against the renewal of ABS-CBN's franchise renewal.
Of the 85 lawmakers, 70 voted to adopt the recommendation of the committee's technical working group that the network's franchise application be rejected.
Eleven lawmakers who were for the renewal of the franchise voted against the TWG resolution, while two inhibited and one abstained.
The TWG resolution insisted that denying the ABS-CBN franchise is “in no way related to freedom of the press freedom.
“It is what it is… The applicant is seen as undeserving of the grant of a legislative franchise,” read the resolution.
