The Senate Committee on Public Services chaired by Sen. Grace Poe has deferred the approval of the franchise applications of NOW Cable and News and Entertainment Network Corporation (NEWSNET)—sister companies of NOW Telecom which allegedly owes the government at least P2.6 billion in unpaid supervision and regulation fees (SRF) and penalties.
“For now, and I don’t want anymore to delay this public hearing, we will have to defer this one,” Poe told a representative of the company during a public hearing on Dece. 9.
The hearing was conducted to review applications for franchises submitted by various private companies.
Poe raised the issue of NOW Cable’s ownership and asked if the owners are also behind NOW Telecom. Atty. Henry Abes, president of parent company NOW Corporation said the owners are the same
“You see, the same owners of NOW Broadcast or NOW Cable are also the owners of NOW Telco. I have to bring this up because the characters behind it is also crucial to whether or not they will be given a trust by Congress for a franchise,” noted Poe in the hearing.
Stressing that franchise is a privilege, Poe underscored the need to trust the characters behind a franchise application. A non-payment of even P5,000 in penalties with the Securities and Exchange Commission is a “basis in itself not to grant the franchise or not to submit the report yet,” she said.
“So I think this is something that really needs scrutiny. If you have that much money owed to the government, why will the government trust you with another franchise and to the same owner?” asked Poe.
Poe also said the National Telecommunications Commission (NTC) has been seeking P2.6 billion unpaid SRF from NOW Telecom which piled up since 2004.
She added that the telecoms regulator, through the Office of the Solicitor General, has already filed a motion with the Supreme Court reiterating the unpaid obligation which needs to be settled. The motion is pending before the High Tribunal for decision.
When sought for comment on NOW Cable’s application for franchise, NTC Commissioner Gamaliel Cordoba confirmed to the Senate Committee on Public Services that its owners were the same people who own NOW Telecom.
“I think it’s same owners, the same group, and in the Supreme Court, your honors, actually they are the ones contesting the decision of the Court of Appeals which already affirmed the decision of the NTC regarding the amount that they have to pay,” Cordoba said.
He also confirmed to Poe the amount the government has been trying to collect from NOW Telecom, computed with the help of COA.
“There are a lot of confusing things in this particular franchise application. That they’re non-operation for a period of time, the change of ownership and then now the sister company having these liabilities,” Poe said.
Poe told committee members that Sen. Ralph Recto has relayed to her that he would like to reserve his time to quiz NOW Cable and NEWSNET in the next public hearing.