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Palace: ABS-CBN franchise up to NTC

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Like broadcast newsreaders would say after reading the last paragraph of a 20-second video-taped item.

Malacañang said Monday the fate of the private broadcasting network ABS-CBN Corp. whose franchise was scheduled to expire on May 4 lay in the hands of the National Telecommunications Commission (NTC).

READ: ‘ECQ worked in ABS-CBN favor’

Presidential spokesman Harry Roque said Malacanang would wait for the NTC's decision on the warning of Solicitor General Jose Calida Sunday against issuing provisional authorities to ABS-CBN in the absence of a franchise from Congress.

Roque said: "This issue is a matter that must be dealt with (by) the NTC as a quasi-judicial body and we will wait for (its) response.”

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Calida warned the NTC against issuing provisional authority to ABS-CBN which operates free TV Channel 2 and radio DZMM.

The NTC, in a March 16 memo, had said all live permits to operate and maintain broadcast and pay-TV facilities that will expire during the enhanced community quarantine period will be automatically renewed.

Valid for 60 days

The licenses will be valid for 60 days from the end of the quarantine period after which, the stations will be given two months to file for renewal of their permit or license without penalties or surcharges, the NTC said.

In a related development, the Department of Justice reiterated its opinion there was sufficient basis for the NTC to issue provisional authority to allow ABS-CBN to operate pending franchise renewal in Congress.

Justice Secretary Menardo Guevarra made the statement after the ABS-CBN’s legislative franchise expired on Monday and Congress had yet to take action on its franchise renewal bills.

READ: Solgen, Cable TV group buck ABS-CBN franchise

"There is sufficient equitable basis to allow broadcast entities to continue operating while the bills for the renewal of their franchise remain pending with Congress," Guevarra said in a text message to reporters.

While there are laws requiring television and radio stations to secure a franchise before operating, the DOJ chief noted there was no law concerning entities that had been granted a franchise and operated for years, but whose timely application for renewal had not been acted on "for reasons not attributable" to them.

Calida cautioned NTC

Last February, the House of Representatives Committee on Legislative Franchises asked the NTC to grant ABS-CBN a provision authority to operate effective May 4. The NTC later said it would heed the DOJ advice and likely issue a provisional authority.

Calida had cautioned the NTC officials they could face graft charges if they would give ABS-CBN a provisional authority.

Calida cited a 2003 Supreme Court decision that he said "held invalid a 1991 DOJ opinion stating that the NTC may issue a permit or authorization without a legislative franchise.”

But Guevarra said the case Calida referred to—Associated Communications & Wireless Services-United Broadcasting Networks vs. NTC—would not apply because the company in that case "did not even have an original franchise to begin with."

"In the present case, the subject company had already been granted a franchise and a license to operate, albeit subject to further deliberations for its renewal," the Justice chief said.

In the Senate

Senate Majority Leader Miguel Zubiri stressed it would be “highly irregular" to shut down a major network during the coronavirus crisis when information dissemination was crucial.

He said major networks should be allowed to continuously provide information unless they violated a provision in their franchise.

"If this happened to GMA, TV5, IBC, we will do the same in fighting for your rights to operate," he said, referring to other major broadcast firms in the Philippines.

Senate President Pro Tempore Ralph Recto noted that this issue had been settled during Senate hearings.

“I expect the NTC to allow ABS-CBN to continue to operate until Congress makes a final decision re franchise within this Congress,” said Recto.

Senate Minority Leader Franklin Drilon said the OSG should be reminded of its mandate under the law, saying that under the Revised Administrative Code, the OSG shall act as a lawyer of government agencies including the NTC.

“There is a conflict of interest there when the lawyer threatens to sue its client. It is NTC and not OSG that is granted regulatory functions under the law,” Drilon said.

Sen Panfilo Lacson said the NTC already said they would be guided by the DOJ legal opinion.

In the House

House Deputy Minority Leader Carlos Isagani Zarate assailed the Solicitor General for threatening the NTC with a lawsuit in case in acceded to Congress' request for it to issue ABS-CBN a provisional authority to operate.

Zarate added: "Solicitor General (Jose) Calida's statement only shows his severe aversion for press freedom as he even timed such a threat on World Press Freedom Day.

“We strongly urge the NTC, as the primary regulatory agency, to issue the provisional permit now as it has all the legal and historical grounds to do so."

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