SC FINDINGS AND RECOMMENDATIONS

Moreover, this Committee finds it deeply disturbing that Mr. Lopez cavalierly admits that he
voted in the US elections as recently as 2016:
REP. BAUTISTA. While you live in… as an American citizen
in the US, did you ever vote in the US election?
CHAIRPERSON SY-ALVARADO. Mr. Lopez.
MR. LOPEZ. Yes, Your Honor, I voted in 2016, the 2016
elections. 18
Voting in elections is the supreme act citizenship of an individual, proclaiming to the world
his exercise of sovereignty to choose government leaders of a State. “It is a recognition that
the people in their sovereign character are the fountainhead of governmental authority, and
that their right to participate in the power process is indispensable for democratic government
to constitute an effective instrument of social control.” 19 Mr. Lopez exercised this supreme
sovereign right not as a Filipino citizen, but as an American citizen.
In sum, Mr. Lopez’s birth as a Filipino was never registered. It took him 50 years to apply for
recognition as Filipino citizen, presenting no clear and convincing evidence that his parents
were Filipino citizens at the time of his birth. From birth even to the present, he continues to
use his US passport. He even voted during the last US Presidential elections. All these acts
taken together demonstrate a pattern and ultimately cast doubt on the Filipino citizenship and
allegiance of Mr. Lopez.
II. PHILIPPINE DEPOSITARY RECEIPTS
In arguing for the validity of the issuance and sale of PDRs to foreigners, ABS-CBN maintains
that: 20
1) It is not a novel idea since it has counterparts in other countries like American
Depositary Receipts, and that the instrument was brought about by the 1997 Asian
financial crisis to help ailing companies recover;
2) The PDRs were issued by ABS-CBN Holding Corp., which has a distinct and
separate personality from ABS-CBN Broadcasting Corporation;
3) The PDRs are different from shares of stock, and do not confer ownership over
ABS-CBN Corp. nor voting rights to PDR holders;
4) There are two (2) rights granted to PDR holders, to wit: (1) cash distribution; and
(2) exercise right or option to purchase the underlying share. Through the exercise
right, a holder of PDR may exchange it with ABS-CBN share by the process of
notice and paying the price – one share for every PDR certificate, but only for
Filipinos. For non-Filipino holders, the commitment would be to turn over the
proceeds of the sale of the underlying shares of the PDRs, after expenses, taxes
and loans are deducted;
18
TSN of the 03 June 2020 hearing, at I-11.
19
People of the Philippines vs. San Juan, et. al., G.R. No. L-22944, February 10, 1968.
20
TSN of the 11 June 2020 hearing, at I-4 to 10.
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