House resolution urges NTC to suspend SMNI franchise

Citing franchise violations that includes deliberate dissemination of false information, the House of Representatives adopted a resolution on Monday calling on the National Telecommunications Commission (NTC) to suspend the franchise to operate of Swara Sug Media Corp. (SSMC), which operates Sonshine Media Network International (SMNI).

This developed after the House, via a voice vote, approved House Resolution 1499 authored by lawyer and PBA party-list Representative Margarita Nograles.

Nograles’ resolution and the subsequent congressional inquiry on SMNI operations by the House Legislative Franchises panel were triggered by a privilege speech of Quezon lawmaker Jayjay Suarez that called out SMNI program hosts Eric Celiz and Lorraine Badoy who claimed Speaker Martin Romualdez had P1.8 billion worth of travel fund during a broadcast.

During the congressional inquiry on SMNI operations, Celiz admitted that his source of information over Romualdez’ alleged travel fund was wrong.

Both Celiz and Badoy were placed under detention after they were cited for contempt by the House panel on Friday-- the former for refusing to disclose his source of Romualdez' alleged travel funds and the latter for withholding information pertaining to ad revenues of the program she also co-produces and for being disrespectful to the committee.

In a letter to the House Legislative Franchises panel on Monday, Celiz asked for furlough from detention due to the deteriorating health condition of his mother. He also apologized for his broadcast on Romualdez's travel fund as well as  his disrespect to the committee, although he did not cite specifics.

House Secretary General Reginald Velasco disclosed the travel fund of the House for official business, including that of the Speaker's office, is P39 million based on financial records

Alleged violations by Swara Sug

The Nograles resolution pointed to alleged franchise violations by citing Swara Sug’s corporate filings before the Security and Exchange Commission and General Information Sheet showing that Swara Sug transferred its controlling interest from Pastor Apollo Quiboloy, the head of Kingdom of Jesus Christ (KJC) religious group, to a certain Marlon Acobo in December 2022 without prior approval of Congress, an action contrary to Section 10 of Swara Sug’s franchise.

Section 10 states that the franchise grantee should not transfer the controlling interest of the grantee, simultaneously or contemporaneously, to any person, firm, company, corporation, or entity without the prior approval of congress.

Nograles added that Section 10 of the Swara Sug franchise also provides that congress “shall be informed of any sale, lease, transfer, grant of usufruct, or assignment of franchise or the rights and privileges acquired thereunder, or of the merger or transfer of the controlling interest of the grantee, within 60 days after the completion of the said transaction, and that failure to report to Congress such change of ownership shall render the franchise ipso facto revoked”.

During the congressional inquiry, state regulator Movie and Television Review Classification Board (MTRCB) said SMNI broke its promise not to air threats made by former President Rodrigo Duterte against House Deputy Minority Leader France Castro after SMNI’s initial broadcast in October 9.

“It is the duty of the NTC to immediately stop the deliberate dissemination of false information that may generate cynicism and mistrust on matters involving public interest,” Nograles said in her resolution.

GMA Integrated News reached out to SMNI representatives for comment but received no response at the time of this writing. —RF, GMA Integrated News