SC FINDINGS AND RECOMMENDATIONS

FINDINGS AND RECOMMENDATIONS
ABS-CBN came before this Committee, asking that it be granted the privilege of a legislative
franchise to once more operate a broadcasting company.
It sought to demonstrate to this Committee that it has faithfully discharged its responsibilities
under its previous franchise and prove that it deserves to be conferred the same privilege for
the next twenty-five years.
As promised, this Committee was fair, thorough, and impartial, viewing with eyes, minds, and
hearts wide open all facts and issues bearing on the fitness of ABS-CBN to be given the
privilege of using the airwaves of the State.
We endeavoured to see if ABS-CBN, based on the totality of circumstances and entirety of
conduct, is truly deserving of a new legislative franchise.
This Committee has exhaustively discussed —
1. Mr. Lopez’s American citizenship and doubtful Filipino citizenship and allegiance
to the Philippines;
2. ABS-CBN’s possible violation of the Constitutional prohibition against ownership
and management of mass media by foreigners;
3. ABS-CBN’s numerous violations of the terms of its legislative franchise;
4. ABS-CBN’s questionable and unjust, if not immoral, tax avoidance schemes;
5. ABS-CBN’s apparent use of a dummy; and
6. ABS-CBN’s less than exemplary labor practices.
This Committee finds that the foregoing, taken collectively, weighs heavily against the grant of
legislative franchise to ABS-CBN.
This Committee likewise takes the opportunity to present policy recommendations with a view
to crafting more responsive and effective legislation to address the many unresolved issues
discussed in the course of ABS-CBN’s franchise application -
• For the House of Representatives, through its various Committees, to vigorously
exercise its general Congressional oversight functions in order to timely and
immediately address violations or perceived violations of legislative franchises,
relevant laws and regulations even prior to consideration of applications for
renewal;
• For the relevant Committees of the House, with the participation of appropriate
government agencies, to inquire, in aid of legislation and policy determination, on
the practice of issuing Philippine Depositary Receipts for industries required to be
wholly owned and managed by Filipinos;
39