Media – Infrawatch PH

Duterte urged: Recall NTC closure order

May 6, 2020

An infrastructure-oriented thinktank called on President Rodrigo Duterte to recall the National Telecommunications Commission ordering the closure of ABS-CBN for defying his commitment ‘not to..interfere’ with deliberations of Congress on the network’s legislative franchise.

“Now is the time to be true to your word, Mr. President. The NTC is under your control. It interfered with congressional prerogatives by issuing the closure order. It even defied its own orders. Most important, it defied your commitment not to interfere. And only you have the power to take that order back. With respect, the buck stops with you.”

This was the statement of Terry Ridon, Infrawatch PH convenor and former House legislative franchises committee member.

NTC violates own orders

Ridon said no less than Justice Secretary Menardo Guevara said that the President may “may modify, amend, recall, revoke any order or any decision that might have been rendered by his subordinates in the executive department.”

“In fact, the President should discipline the NTC for violating its own orders covering the quarantine period. They issued Memorandum Order No. 03-03-2020 which extends the validity of NTC permits, licenses and certificates sixty days after the lifting of the quarantine, yet they issued the closure order on ABS-CBN during the quarantine period. Clearly, this is nothing but a naked abuse of power.

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Ridon, a lawyer, said that the law is clear that no entity can broadcast without first obtaining a franchise from Congress.
“The NTC cannot apply this to ABS-CBN because the network had already obtained a franchise from Congress, it was now only a matter of renewal or denial by Congress. The requirement of ‘prior obtainment’ has been fulfilled.”

NTC vulnerable to graft raps for granting previous provisional authorities

Ridon said the NTC is vulnerable to graft raps if they insist on their ‘flimsy logic’ that the network cannot operate on an expired franchise.

“The NTC should carefully rethink the logic of their orders. If issuing a provisional authority to ABS-CBN pending the approval/denial of its legislative franchise constitutes graft, it follows that the same NTC officials are now liable for graft for previously issuing provisional authorities to other franchise holders that continued broadcasting pending legislative franchise approval/denial.”

Unemployment surge will burden government

“With 11,000 ABS-CBN employees in danger of losing their jobs, government may be burdened with an additional but avoidable PHP 88 Million emergency crisis funding for their families.The SAP covers employees affected by a no work, no pay policy. Will the NTC take responsibility for these families?”

Focus on crisis relief: Business takeover in coronavirus bill unconstitutional

Mar 23, 2020

An infrastructure-oriented thinktank said that the proposed coronavirus emergency response bill violates the 1987 Constitution by failing to prescribe reasonable terms in the takeover of public utilities and business imbued with public interest.

“Never have we seen such sloppily written legislation than this emergency coronavirus response bill. Not only does the bill fail to respond to the current reality the Filipino family faces, it seeks to unnecessarily commandeer private businesses which had already been responding effectively to the crisis.”

This was the statement of Terry Ridon, Infrawatch PH convenor and former House legislative franchises committee member.

Ridon said that the most basic constitutional requirement for the takeover of businesses during national emergencies is the institution of reasonable terms upon takeover.

Takeover approximates confiscation

“Under the emergency bill, the terms are absolutely unreasonable. For example, determination of the expiration of the temporary takeover is subject to presidential discretion, instead of a mutually-agreed upon, specific but extendible expiration date based on prevailing conditions. Insisting on this presidential discretion approximates an unjust taking, if not confiscation.”

Ridon said this provision opens the possibility that businesses taken over during the crisis may never be returned by government.

“This creates serious instability and uncertainty in the economy, and would definitely spook investors considering the Philippines.”

Businesses covered are overbroad

Ridon said that the bill does not limit businesses subject to takeover to those directly responding to the coronavirus crisis such as hotels and similar establishments.

“With hotels and similar businesses now also redefined as public utilities or businesses imbued with public interest, there is uncertainty on which public utilities and businesses may be subjected to temporary takeover. Will this now include all other public utilities which may ‘be used in addressing the needs of the public,’ such as power distribution and transmission companies, water utilities, broadcast companies? As such, anything and everything is fair game for a temporary takeover.”

Uncertain recipient of compensation

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Ridon said the bill makes serious conceptual errors on entities eligible to receive compensation payment due to the government takeover.

“The bill confuses elementary legal concepts of payment, ownership and possession, as it provides the payment of reasonable compensation to the possessor of the property or business. The possessor of a property or a business is not always the owner, and the owner or the possessor of a property or business is not always the valid recipient of payments. As an example, if government retains possession of the property or business beyond the crisis, should the government as the possessor pay itself the reasonable compensation just because it retains possession? No. But the emergency bill makes it so.”

Ridon said the private sector instead should be allowed to address the national crisis without the spectre of vague, unreasonable temporary takeover, noting that private enterprises have already raised at least P1.5-Billion to contribute to the national effort.

Focus on crisis relief

Ridon, who was a former urban poor chief of the Duterte administration, said these should be reason enough for Congress to focus instead on actual crisis relief for Filipino individuals, families and small businesses.

“There is nothing in the emergency bill which details with particularity new economic programs which the government will undertake. This is in sharp contrast from foreign governments such as the United States which is proposing stimulus checks amounting to $1200 per person and $500 per child.”

Ridon said the bill cannot even be considered a supplemental spending bill.

“Make no mistake. This bill seeks emergency powers for the President, nothing else. It is not even the supplemental spending bill which the public had been expecting from the very beginning.”

Ridon said Congress exercise the power of the purse instead of surrendering everything to Malacanang.

“As proposed, the bill is nothing but a blank check granted to the executive to realign public funds: an unconstitutional surrender of congressional power. They have the power today to determine as line items how to help the public during this emergency, they should not waive this power.”

Thinktank: House drops ball on ABS-CBN franchise

Feb 27, 2020

An infrastructure-oriented thinktank said that the House of Representatives squandered the opportunity to lead the initiative to renew the ABS-CBN franchise.

“Today it can be said: The entire Duterte establishment except Congress has already endorsed the renewal of the ABS-CBN franchise. Its major pillars are now openly supporting the renewal for the sake of the network’s employees – Senator Bong Go and Davao City Mayor Sara Duterte. President Rodrigo Duterte has also declared that the onus is on no one else but Congress. There is thus absolutely no more reason for Congress to delay deliberations. It is now time to decide whether to approve or reject the franchise. It has dropped the ball far too long, and it is now time to pick it up.”

This was the statement of Terry Ridon, Infrawatch PH convenor and former House legislative franchises committee member.

Protracted quibbling unacceptable

Ridon said the House leadership’s quibbling on the franchise endangers the livelihood of tens of thousands of families relying on ABS-CBN’s operations.

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“It should be clear at this point that passing the buck to the NTC for a provisional authority is unacceptable at this point, when all Congress needs to do is call for a meeting to discuss the franchise, and decide whether to approve of reject it”

Stop complaining and do your job

Ridon said the NTC provisional authority is now a secondary concern given that the President and his closest associates are taking conciliatory positions on the matter.

“At this point, we are almost certain that the network can rest easy that the President will not order a shutdown after the franchise lapses. And this is also precisely the reason why Congress should stop quibbling, stop complaining, and just do its job.”

Public service act amendment surrenders Congress’ mandate to regulate critical sectors

Feb 19, 2020

An infrastructure-oriented thinktank said that House Bill No. 78, which amends the Public Service Act, has omitted critical regulated sectors from the ambit of legislative franchise approval: broadcast, telecoms, tollways, airlines and rail.

“While the authors proselytize the impact of the measure on competition and foreign investment, what is left unsaid is that critical regulated sectors, such as broadcast, telecoms, tollways and airlines, which currently require legislative franchises, will no longer be subject to direct congressional scrutiny. This is nothing but a surrender of the public interest over critical regulated sectors. This is a surrender of Congress’ constitutional mandate.”

This was the statement of Terry Ridon, Infrawatch PH convenor and former House legislative franchise committee member.

Ridon said these regulated sectors will now be answerable directly only to administrative agencies such as the National Telecommunications Commission, Civil Aeronautics Board, Toll Regulatory Commission on matters concerning the businesses’ operations.

Congress diminished

“The very public discussions in Congress on the franchises of ABS-CBN and Mislatel should give the legislature pause on surrendering its mandate under this bill. The public needs wider discussions on the intersecting interests of business and public welfare.”

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Ridon said Congress was also instrumental in immediately resolving issues relating to flight delays of a local airline in 2015.

“By removing these sectors from the list of industries considered as public utilities, the primacy of public interest is diminished. The stature of Congress is diminished, as these businesses can now operate without the fear of direct congressional scrutiny.”

Talk shop

Ridon said the public would like to be able to complain at the level of Congress on issues such as unreliable mobile internet, airline overbooking, unscrupulous railway maintenance schemes, among others.

“With these amendments, there is a real tendency that Congress will now be relegated as a talk shop on issues but with no real consequences on business conduct.”

Thinktank warns: Duterte has final say on ABS-CBN franchise holdover

Feb 13, 2020

An infrastructure-oriented thinktank warned that President Rodrigo Duterte has the final say on whether ABS-CBN will be allowed to operate after the lapse of its franchise on March 30, despite assurances from senior congressmen and senators that the network can continue its broadcast beyond the term of its franchise.

“While the strong views of congressmen and senators on ABS-CBN’s franchise holdover are very comforting to the network, its employees and advocates of press freedom, we should be reminded that the President can still order the uniformed personnel and other agencies to literally and figuratively shutdown the network after March 30. With no favorable presidential pronouncement in sight, the public should brace for this unfortunate prospect. Wide public support remains key to stop an escalation from happening.”

This was the statement of Terry Ridon, Infrawatch PH convenor and former House legislative franchise committee member.

Convince the President to allow holdover

Ridon said the legislators’ assurances are compelling but they should also convince the President to take a similar position.

“Without convincing the President, the legislators’ assurances of a franchise holdover carry no weight. Will we see them at the gates of ABS-CBN when the President’s proverbial tanks come crashing the network? Probably not.”

Ridon said the swelling of public support for the network should convince the highest levels of government to reconsider.

“The Senate has a majority supporting the franchise renewal of ABS-CBN, with no less than Senate Majority Leader Miguel Zubiri announcing it. The Palace should take notice that the Senate is breaking rank from the President and Congress.”

Onus is on Congress, no one else

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Ridon, a lawyer, said that ultimate accountability at this point rests on Congress and no one else, not even the President.

“The onus is on no one else except Congress. Citing the lack of time or justifying the delay due to other important concerns is an absolute cop-out. As in all legislative measures, pag gusto maraming paraan. Pag talagang ayaw, maraming dahilan. If they feel that the franchise should be rejected, let the sword fall where it should.

17th Congress approved six broadcast franchise renewals in 2019

Ridon said if Congress really wanted to hear and decide the ABS-CBN’s franchise application, nothing in the world could have prevented it.

“In fact, Congress approved six broadcast franchise renewal in 2019: Crusaders Broadcasting System, Inc. (HB No. 4584, approved by the House on 24 Sep 2019), First United Broacasting Corporation (HB No. 4463, approved by the House on 13 Nov 2019), Golden Broadcast Professional, Inc. (HB No. 4581, approved by the House on 24 Sep 2019), Gold Label Broadcasting System, Inc. (HB No. 4582, approved by the House on 24 Sep 2019), Broadcast Enterprises and Affiliated Media, Inc. (HB No. 4583, approved by the House on 25 September 2019) and Bicol Broadcasting Systems, Inc. (HN No. 5490, approved by the House on 9 Dev 2019).”

Ridon said four of these broadcast franchises are national in scope, similar to the franchise granted to ABS-CBN.

“Given these facts, it is very hard to justify any further delay in deliberating the ABS-CBN franchise. More important, the Palace has already thrown Congress under the bus when it continues to disavow any responsibility for the current franchise mess.”

Thinktank: Calida ignorant on media franchise law

Feb 10, 2020

An infrastructure-oriented thinktank said that Solicitor General Jose Calida was ‘ignorant on media franchise law’ when he filed a quo warranto petition calling for the revocation of ABS-CBN’s franchise before the Supreme Court.

“In order for his petition to even proceed, Mr. Calida has to show that ABS-CBN is an ‘unincorporated association’ or an association ‘without lawful authority so to act.’ Either of these circumstances do not apply to the network, as ABS-CBN is not only a corporation, it is in fact a listed corporation as required by its franchise. More important, it has valid and subsisting franchise granted no less by Congress, such that it has lawful authority to conduct its business. Ignorance, if not grasping for relevance, is the only explanation for this petition.”

This was the statement of Terry Ridon, Infrawatch PH convenor and former House legislative franchise committee member.

Only Congress can resolve Calida’s complaints

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Ridon said Mr. Calida’s complaints can be validly addressed in the franchise renewal proceedings in Congress.

“The issues concerning the use of Philippine Depositary Receipts (PDRs) can be resolved during franchise committee hearings, particularly whether these instruments violate nationality restrictions governing mass media. There should be no issue if ABS-CBN issued PDRs which do not convey control or voting rights to foreign investors.”

Ridon also wondered why Mr. Calida was complaining about other ABS-CBN products and services such as TV Plus.

“If Mr. Calida only cared to do a bit more research, TV Plus is an entirely different product from ABS-CBN’s broadcast services, whether analog or digital television. What relates to their franchise is the free broadcast of its analog and digital channels. If the broadcast is being done without any fees from the public, how can there be a franchise violation?”