Well known lawyer reveals 'hidden perks' in Cayetano’s ABS-CBN franchise bill

Photo courtesy of Politiko

The House of Representatives convened into a Committee of the Whole last Wednesday to discuss the house bill for ABS-CBN 's provisional authority to continue its operation while awaiting its franchise.

“Through this measure, we hope to strike a balance between the immediate needs of the people amid his crisis and the duty of Congress to ensure accountability to our present laws,” the lawmakers explained in the bill’s explanatory note.

“Providing ABS-CBN with a provisional franchise valid until 31 October 2020 will give both the House of Representatives and the Senate to hear the issues being raised for and against the renewal, and assess, with complete impartiality and fairness, whether or not the network shall be granted a franchise for another twenty-five (25) years,” they added.

“We cannot, in good conscience, sweep the accusations under the rug.” the lawmakers further said.

The said House bill will allow ABS-CBN to resume broadcast operations until October 2020 that has a provision which will allow the Lopez family to sell or merge the media giant without the mandatory approval from Congress.

Famous lawyer and radio host Trixie Cruz-Angeles pointed these out as one of the three “hidden benefits” of House Bill 6732 which was railroaded by Speaker Alan Cayetano and which senators supporting ABS-CBN have no choice but to adapt in order to enact it into law before Congress adjourns on June 3.

Cruz-Angeles said Section 11 of HB 6732 does not explicitly bar ABS-CBN from merging with another company or the Lopezes transfer controlling interest of ABS-CBN to any person or entity unlike its rival network, GMA’s franchise.

Section 11 of HB 6732 states: “The grantee shall not sell, lease, transfer, grant the usufruct of nor assign this franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation or other commercial or legal entity without the prior approval of the Congress of the Philippines.”

Section 12 of GMA Corp.’s franchise states: ”The grantee shall not sell, lease, transfer, grant the usufruct of nor assign this franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation or other commercial or legal entity without the prior approval of the Congress of the Philippines, nor merge with any other corporation or entity, nor shall the controlling interest of the grantee be transferred whether as a whole or in parts, and whether simultaneously or contemporaneously, to any such private person, firm, company, corporation or entity without the prior approval of the Congress of the Philippines.”

The famous lawyer also said ABS-CBN’s franchise would get the same benefits granted to GMA and would also allow ABS-CBN to sell or merge “without the benefit of a hearing.

HB 6732 allows ABS-CBN to “install digital TV or other program and distribution services” that were not included in its old franchise which expired on May 4.

While GMA’s franchise approved by Congress allows it to go into “terrestrial” technologies such as installing radio facilities for their private use. GMA is also allowed to go into program and distribution services.”

Cayetano says "provisional" franchise. If that were true, why change the original franchise ang give more benefits to ABS in the 5 months that Congress is discussing the "REAL" 25 year franchise? Why did he not talk about this in his speech?

— Luminous by TrixieCruz-Angeles (@trxangeles) May 16, 2020