DOJ maintains there is basis to let broadcast firms operate pending franchise renewal

The Department of Justice (DOJ) on Monday maintained that there is enough basis to allow broadcast companies to continue operating while awaiting the renewal of their franchise.

ABS-CBN's legislative franchise lapses Monday, May 4, and Congress has yet to decide its franchise renewal bills.

Justice Secretary Menardo Guevarra stood by his position that "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."

He said there are laws requiring television and radio stations to secure a franchise before operating -- but that there is "no law" concerning entities that had been granted a franchise and operated for years, but whose timely application for renewal has not been acted on "for reasons not attributable" to them.

This has been Guevarra's stance since ABS-CBN's franchise was discussed in the Senate. He said at the time that Congress could authorize the National Telecommunications Commission (NTC) to provisionally allow ABS-CBN to operate pending the renewal of the company's franchise.

"In several similar situations in the past, Congress allowed the status quo, without urging the NTC to issue a temporary or provisional permit, in consideration of the equities of the situation," he said in a message to reporters on Monday.

The House of Representatives' franchise committee in February asked the NTC to grant ABS-CBN a provisional authority to operate effective May 4. The NTC later said it will heed the DOJ advice and likely issue a provisional authority.

On Sunday, Solicitor General Jose Calida warned NTC commissioners they could face graft charges if they would give ABS-CBN a provisional authority.

He cited a 2003 Supreme Court (SC) decision that he said "held invalid a 1991 DOJ opinion stating that the NTC may issue a permit or authorization without a legislative franchise." Calida is of the position that ABS-CBN cannot continue operating once its franchise lapses.

However, Guevarra said the case Calida referred to, Associated Communications & Wireless Services - United Broadcasting Networks vs NTC, does 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.

Earlier this year, Calida asked the SC to forfeit ABS-CBN's existing franchise over alleged violations concerning, among others, the company's movie channel KBO. — RSJ, GMA News