ABS-CBN FRANCHISE | Duterte says he will block ABS-CBN franchise unless it can pays back taxes

February 9, 2021 , 09:54 AM

(February 9, 2021) – President Rodrigo Duterte late on Monday said he will not allow the telecommunications regulatory agency to grant broadcast license to a broadcast company unless its owners settle its back taxes, a blow to efforts to reopen the largest television and radio network.

The populist leader said he will not allow the National Telecommunications Commission (NTC) to grant ABS-CBN a license to operate even if the two-chamber Congress passes a new franchise law.

“Congress is planning to restore the franchise of the Lopezes, wala akong problema doon, kung i-restore ninyo, but if you say they can operate, I will not allow it,” Duterte said during his weekly public address. “I will not allow the NTC to grant them the permit to operate. I will not give them the license to operate. Kalokohan ‘yan,”

Duterte said the Lopez family has to pay first back taxes. However, the Bureau of Internal Revenue has said ABS-CBN has no tax liability. “It has been regularly paying its corporate taxes for the past years,” it said during a public hearing last year.

Duterte could be referring to ABS-CBN P1.6 billion loans in 2006 from the government’s Development Bank of the Philippines. The bank has denied accusations it had written off the loans.

“In the case of the NPLs and NPAs of the Lopez’ entities, there was no condonation or write-off,” DBP president and chief executive officer Emmanuel Herbosa had said.

The NTC issued a cease and desist order against ABS-CBN in May after its legislative franchise expired. Two months later, a House panel denied its franchise renewal, shutting down the network

Duterte’s spokesman said the president has no hand in the closure of the network, which cuts thousands of jobs. But it was widely known Duterte opposed the franchise.

The NTC also recalled ABS-CBN’s frequencies for five AM radio stations, 18 FM radio stations, 42 TV stations and 10 DTTB stations for implementation.

Duterted said that granting the Lopezes a franchise is “like giving them a prize for committing criminal acts.”

Senate President Vicente Sotto III has filed a bill seeking to grant a new 25-year franchise to ABS-CBN. A similar bill was filed at the lower house by a former movie star, Vilma Santos-Recto.

(Kiko Demigillo/MM)

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