SC FINDINGS AND RECOMMENDATIONS

18 th Congress, and this Committee is not prepared to deviate from such sound practice based
on reason and practical considerations.
IV. RETURN OF ABS-CBN TO THE LOPEZ FAMILY AFTER MARTIAL LAW
On 17 April 1986, the Lopez family, through counsel, former Senator Lorenzo Tañada,
requested President Aquino to order the return of TV Stations 2 and 4. On 13 June 1986, the
Lopez family made a written request to the Presidential Commission on Good Government
(PCGG) for the return of TV Station Channel 2. 33
On 18 June 1986, the PCGG allegedly approved the return of the TV Station Channel 2 to the
Lopez family. Acting upon the request, the Executive Secretary, by authority of the President,
entered into an "Agreement to Arbitrate" with ABS-CBN Broadcasting Corporation,
represented by its President, Eugenio Lopez, Jr., pursuant to which an Arbitration Committee
was created, composed of Atty. Catalino Macaraig, Jr., for the Republic of the Philippines,
Atty. Pastor del Rosario, for ABS-CBN, and retired Justice Vicente Abad Santos, as
Chairman. 34
On 16 October 1986, the said Agreement to Arbitrate was upheld by the Supreme Court 35
after being assailed by a group led by Jose Luis Martin C. Gascon. The gradual return of the
properties and broadcast equipment to the Lopez Family began on 18 October 1986 while the
arbitration proceedings were being conducted. 36
It appears that the
prescribed process for
the return of the subject
assets and equipment
was not followed.
Pursuant to Executive Order No. 5 (1986) 37 and Proclamation No. 50, the Committee on
Privatization and the Asset Privatization Trust 38 were created. Section 22 and 23 of the said
Proclamation provide:
SECTION 22. TRANSFER OF ASSETS. The Committee
shall:
(1) Arrange for the transfer to, and eventual disposition by, the
National Government of certain non-performing assets of
government financial institutions, as may be determined under
terms mutually acceptable to all the parties concerned, and
(2) Arrange for the disposition of certain government-owned or
controlled corporations which have been approved for
divestment by the President of the Philippines; Provided, that
33
TSN of the 15 June 2020 hearing, at VIII-4; submission of ABS-CBN, letter dated 17 April 1986 of Atty. Tañada.
34
Submission of ABS-CBN, Agreement to Arbitrate.
35
In the Matter of Arbitration of Claims between Republic of the Philippines and ABS-CBN Broadcasting Corporation Case
File.
36
Submission of ABS-CBN, Affidavit of Atty. Augusto Almeda-Lopez acknowledged before a Notary Public on 8 August
1994.
37
Executive Order No. 5 (1986) https://www.officialgazette.gov.ph/1986/03/12/executive-order-no-5-s-1986/
38
Proclamation No. 50 https://www.pmo.gov.ph/p50.pdf
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