Marcoleta claims TV5 violated franchise with ABS-CBN deal

MANILA, Philippines – SAGIP Party list Rep. Rodante Marcoleta claimed that TV5's recent partnership with ABS-CBN led the Kapatid network violating its franchise rights.

Marcoleta claims TV5 violated its franchise rights when it inked deal with ABS-CBN
Rep. Rodante Marcoleta says TV5 violated its franchise rights when it inked a partnership with ABS-CBN | Photo Courtesy: Facebook/ Rep. Rodante Marcoleta

Marcoleta made the claim in his privilege speech during the plenary session Monday, August 15. The lawmaker questioned the 2 media networks' partnership investment where ABS-CBN acquired 35% in the primary common shares of TV5. After 8 years, ABS-CBN can acquire additional shares leading up to 49.92%.

READ: ABS-CBN and TV5 sign landmark partnership deal

According to Marcoleta, the deal violated the franchise of TV5. He said, "With the substantial purchase, Mr. Speaker, of the outstanding stocks of ABS-CBN, I believe Section 5 of the franchise of TV5 was violated because the rights and obligations have virtually been transferred to ABS-CBN."

He went on to ask if such a deal is allowable considering ABS-CBN was not granted a franchise.

“Pupuwede ba Mr. Speaker na ang isang network na hindi na natin binigyan ng lisensya because of this established violation, wala na siyang prangkisa, pwede ba siyang sumakay na ganun ganun lang without settling the obligations to the country, to the government?” he asked.

The lawmaker said that ABS-CBN operating under TV5 should not be allowed because the network has faced violations that led to it losing its franchise.

"Is it possible that something that cannot be achieved or obtained directly can be obtained indirectly? I think is a basic…we cannot do that,” he reiterated.

Marcoleta urged the Congress to probe the 2 networks' deal because it allegedly violates Section 10 of the TV5's franchise. According to the section, TV5 cannot merge with other entities without the prior approval of Congress.

"Wala pa po tayong approval. So I said, this particular deal must be looked into,” he explained.

Marcoleta, one of the top officials responsible for the non-renewal of ABS-CBN's franchise over 2 years ago, said he thinks “the merger left a bad taste in the mouth."

— Sally, The Summit Express

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