Gov't to auction off RPN-9 as early as Feb 2007

The government may auction off state-owned Radio Philippine Network (RPN-9) as early as February next year, after the tax agency agreed to a compromise agreement regarding the broadcasting firm's unpaid taxes. Finance Undersecretary John Philip Sevilla told reporters told reporters RPN-9 has an outstanding obligations worth P5 billion. Sevilla said the BIR agreed to a compromise wherein it would only collect the principal loan of theTV network's P208-million unpaid franchise and withholding taxes. He expects the state-run Privatization Management Office (PMO) and the Bureau of Treasury (BTr) to likewise pardon the network. RPN-9 owes PMO a total of P2.2 billion for the loans that the government agency assumed. It also owes more than P1 billion to employees representing unpaid wages and benefits. The finance official said the government is hopeful that it would be able to reach an agreement with the employees so it would only have to deal with Fareast Managers and Investors Inc (Femi). The government owns 72.4 percent of RPN. The Presidential Commission on Good Government (PCGG) has sequestered in 1986 the 40 percent shareholdings of Femi allegedly owned by the late strongman Ferdinand Marcos and another 32.4 percent surrendered by Marcos-crony Roberto Benedicto. RPN-9 operates six television networks in six cities, TV relay and translator stations in Baguio City and in 12 other population centers in the Visayas and Mindanao. It also operates 13 radio stations strategically spread all over the country. - GMANews.TV