RP govt defers sale of debt-ridden RPN-9, IBC-13

The Philippine government has decided to put-off the sale of state-run television stations Radio Philippine Network and International Broadcasting Corp. to focus on big-ticket items which would be easier to dispose. Finance Undersecretary John Philip Sevilla on Wednesday said that the government will not prioritize the sale of RPN-9 and IBC-13 as both stations are currently burdened with billions of pesos in debt, making them unattractive to potential investors. Sevilla said RPN-9 has outstanding obligations amounting to P5 billion,. Of this, P2.2 billion is owed to the Privatization and Management Office, P1 billion in unpaid wages and benefits to employees, and P208 million in unpaid franchise tax to the Bureau of Internal Revenue. The government owns 72.4 percent of RPN. The Presidential Commission on Good Government (PCGG) has sequestered in 1986 the 40 percent shareholdings of Fareast Managers and Investors Inc. 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. On the other hand, IBC-13 was sequestered in 1986 and was nearly sold in 1996 when the PCGG put it up for sale at a P2-billion floor price. IBC-13 owned a 41,000-square-meter lot at Broadcast City in Quezon City , lands and buildings in the provinces, five television stations as well as nine radio stations. Interested investors include telephone giant PLDT chaired by Manuel Pangilinan, Solar Entertainment of businessman Wilson Tieng, El Shaddai’s Mike Velarde, former ABS-CBN Broadcasting Corp. president Freddie Garcia, among others. Sevilla said the government would focus its resources on assets that could easily be disposed such as the 54-hectare old airport in Mandurriao, Iloilo City as well as its 90 percent interest in Al Amanah Islamic Investment Bank of the Philippines (AAIIBP), and its shares in Lopez-controlled Manila Electric Co. (Meralco). The government has already prequalified property giant Ayala Land, Robinsons Land of taipan John Gokongwei, Lopez-owned Rockwell Land, SM Prime Holdings of retail king Henry Sy, and Empire East Holdings of businessman Andrew Tan to bid for the old Iloilo airport with an appraised value ranging between P500 million and P2 billion on April 24.-GMANews.TV