MANILA (Sovereign PH) – Saying he intends to put an end to “abusive practices of ABS-CBN benefitting a greedy few,” Solicitor General Jose Calida on Monday filed a quo warranto case with the Supreme Court seeking to forfeit the legislative franchise of broadcast giant ABS-CBN.
Shortly after filing the case, Calida told reporters he filed the case in an effort to put an end to “abusive practices” of the network.
“We want to put an end to what we discovered to be highly abusive practices of ABS-CBN benefitting a greedy few at the expense of millions of its loyal subscribers. These practices have gone unnoticed or were disregarded for years,” Calida said.
It was also gathered from Calida that his case would show how ABS-CBN hid behind an “elaborately crafted corporate veil.”
Calida explained the said ‘corporate veil” covered unnamed foreign investors who allegedly took part in the ownership of the network.
Ownership of which, he said, is in violation of the foreign interest restriction of mass media under the 1987 Constitution.
Calida went further that Section 11, Article XVI of the Constitution provides that: The ownership and management of mass media shall be limited to citizens of the Philippines, or to corporations, cooperatives or associations, wholly-owned and managed by such citizens.
According to Calida, ABS-CBN issued Philippine Deposit Receipts (PDRs) through ABS-CBN Holdings Corporation to foreigners, which is in violation of the Constitution.
“This simply means that mass media companies operating in the Philippines must be 100 percent Filipino owned because they play an integral role in a nation’s economic, political, and socio-cultural landscape,” said Calida. (IAMIGO/SPH.com)