ABS-CBN Corp. on Thursday insisted that the 50-year cap imposed by the Constitution on franchises refers to the maximum period granted per franchise, and not the number of years a company is allowed to operate.
“The 50-year limit applies to each franchise, certificate of authorization, and does not prohibit the grant of a new franchise to the same entity,” ABS-CBN general counsel Mario Bautista said at the House panel hearing on the network’s franchise renewal on Wednesday.
“Hence, Congress may grant several franchises to the same public utility. Wala pong pagbabawal dito. ‘Yun po ang fair reading of the provision as it is written.”
Bautista made his statement even as a party-list lawmaker took the cudgels for ABS-CBN against what he described as the bullying of the congressmen opposing the renewal of the network’s franchise.
Buhay party-list Rep. Lito Atienza defended ABS-CBN, accusing some of his fellow legislators of monopolizing the proceedings.
Atienza particularly accused Deputy Speaker Rodante Marcoleta of repeatedly raising his accusations against the network even after the authorities from the Department of Justice, Bureau of Immigration, and Securities and Exchange Commission had answered them.
Atienza used the word “browbeating” to describe the manner by which Marcoleta raised an issue without allowing ABS-CBN officials to answer his allegations.
He said that when Marcoleta alleged that three laws had granted the network franchises that added up to 150 years, ABS-CBN lawyer Mario Bautista was denied the chance to answer the claim because the congressman was “browbeating” him.Bautista says section 11 of Article 12 of the 1987 Constitution states that “no franchise, certificate or any other form of authorization for the operation of a public utility shall be granted… for a longer period than 50 years.”
Similarly, the Department of Justice says Congress could grant a franchise as long as it does not exceed 50 years.
Justice Assistant Secretary Nicholas Ty also said at the hearing that Congress could issue another franchise to the same corporation after its franchise had lapsed.
“Congress can once again issue a franchise to the same applicant, the same grantee. Tulad ng sinabi ni Atty. Bautista ng ABS-CBN, ang 50-year limitation under the Constitution pertains to the franchise itself and not to the grantee,” Ty said.
“Congress can issue multiple franchises that collectively exceed 50 years as long as the individual franchises do not exceed 50 years.”
Bautista, meanwhile, cited companies that had been operating for over 50 years but got their franchises renewed by Congress, such as PLDT Inc. (100 years), Meralco (126 years), Visayas Electric Company (102 years), Philippine Airlines (93 years), Davao Light and Power Company (95 years), GMA Network (70 years), IBC Philippines (62 years) and TV5 (62 years).
Other lawmakers at the hearing had likewise said that the 50-year limit applied to each franchise granted by Congress.
“The Constitution is very clear: No one franchise should be more than 50 years. They [ABS-CBN] are not applying for a 51-year franchise, they are applying for a renewal of their 25-year franchise,” Atienza said.
Rep. Rufus Rodriguez, meanwhile, called the issue “dead and clear” and pointed out that Congress had repeatedly given franchises to companies that had existed for more than 50 years.
Rep. Edcel Lagman also said that a contrary interpretation of the provision was “counterproductive” because disqualifying a corporation from securing a franchise renewal would be unconstitutional.
