ABS-CBN ‘deeply hurt’ by House panel’s denial of franchise

ABS-CBN Corp. expressed dismay on Friday after the House Committee on Legislative Franchises voted to deny its franchise application.

“We are deeply hurt that the Committee on Legislative Franchises has denied the franchise application of ABS-CBN,” ABS-CBN president and CEO Carlo Katigbak said in a statement.

In a separate statement, ABS-CBN chairman Mark Lopez said: “Today is a sad day for the entire ABS-CBN family and for the millions of Filipinos who are hoping for our return on-air.”

“This is not the outcome we have hoped for, but we remain grateful that we were able to participate in the process and clear the issues raised against ABS-CBN,” Lopez said.

The House panel on legislative franchises adopted the Technical Working Group’s (TWG) Committee Resolution recommending the denial of the network's franchise application through 70 yes votes, 11 no votes, two inhibitions and one abstention. 

“We believe that we have been rendering service that is meaningful and valuable to the Filipino public,” Katigbak said.

“Nevertheless, we would like to thank the Committee for allowing us a chance to air our side on all the issues raised against us,” he said.

Lopez, likewise, said the company is “very grateful for the unwavering support of all the sponsors who authored our bills and to all the lawmakers who believed we deserve a franchise.”

“It was not an easy task, but we drew strength from God and our people, and we remain inspired by them to continue our mission to be in the service of the Filipino,” Lopez said.

TWG report

Based on the TWG report, ABS-CBN violated its old franchise, described by the panel as a privilege, because of the following reasons: its former chairman Eugenio Lopez III was both a Filipino and American citizen, the issuance of Philippine Depositary Receipts supposedly favoring foreigners, inappropriate program content, meddling in politics, tax avoidance schemes;less than exemplary labor practices, among others.

The TWG also said ABS-CBN cannot invoke the freedom of the press in justifying its franchise application.

Nevertheless, Katigbank said “ABS-CBN would like to thank all the congressmen who stood by their bills to renew our franchise, or who spoke out on our behalf during the hearings. We are forever grateful.”

“We also thank everyone who expressed their support and offered their prayers for us.  We could not have gotten to this point without you,” he said.

ABS-CBN went off air on May 5 after the National Telecommunications Commission issued a cease and desist against the network for lack of franchise.

NTC’s May 5 action was a turnaround from NTC Commissioner Gamaliel Cordoba’s statement before the House of Representatives in March that they will issue a provisional authority to ABS-CBN given that the House and the Senate made communications stating they are in favor of such issuance.

“We remain committed to public service, and we hope to find other ways to achieve our mission,” Katigbak said.

“Together with our employees and our audiences all over the world, we share in your sadness over this setback.  We look forward to the day when we can again reunite under our broadcast.  Mga Kapamilya, thank you for keeping the faith with us,” he said.

“Kapit lang, muling magliliwanag ang kwento ng bawat Pilipino.” 

Lopez, for his part, said that “now, more than ever, we feel proud of our company. We are proud of everyone who have helped us serve the Filipinos through the years.”

“And we are proud of the genuine love and support we continue to receive from our kababayans all over the world,” he said.

The ABS-CBN chair said the company remains hopeful that better days are ahead for the network. “This painful development will only make us stronger and better. We will never give up on our mission. We will never give up on our nation,” he said. — RSJ, GMA News