Marcoleta believes TV5 violated franchise with ABS-CBN deal

Sagip party-list Representative Rodante Marcoleta believes TV5 violated its broadcasting franchise when it entered into a partnership agreement with ABS-CBN, according to a report on "24 Oras" on Monday.

In a privilege speech, the lawmaker cited Section 10 of TV5's franchise that prohibited its merger with other companies without prior approval by Congress.

It was confirmed on Friday that TV5 sold a 35-percent stake in the network to ABS-CBN for P2.16 billion.

Marcoleta said the sale of TV5 stocks was like transferring to ABS-CBN its rights and obligations under its franchise.

He asked if a company may do so even if it was not given a franchise by Congress because of violations and failure to pay its obligations.

"I think the merger left a bad taste in the mouth. There were flagrant violations not only of the rules and laws but also the Constitution," Marcoleta said.

"I think even the Constitution was desecrated by ABS-CBN by violating the exclusive Filipino ownership and management of mass media by the issuance of what we called the Philippine Depositary Receipts," he added.

Administrative penalties incurred by the network that it needs to pay the government have reached around P1.6 trillion, Marcoleta said.

ABS-CBN network earlier denied it had franchise violations.

GMA News tried to get the side of the two networks for this report.—LDF/NB, GMA News