The Senate Committee on Public Services deferred the approval of the franchise applications of NOW Cable and News and Entertainment Network Corporation (NEWSNET)—sister companies of NOW Telecom, which the National Telecommunications Commission says 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 , we will have to defer this one,” said committee head Senator Grace Poe during the hearing that was conducted to review applications for franchises submitted by various private companies.
The Senate panel learned during the hearing that NOW Cable and NOW Telecom have the same owners, as confirmed by the two firms’ parent company NOW Corp. president Atty. Henry Abes, “Yes, it’s the same owners.”
“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,” said the Poe, stressing that franchise is a privilege, underscoring the need to be able to trust the characters behind an 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 added to illustrate her point.
“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.
Reading from her notes, the Senator narrated that the NTC has been seeking a P2.6 billion payment from NOW Telecom in unpaid SRF and penalties that have accumulated since 2004 – an amount computed with the help of the Commission on Audit.
She added that the NTC, through the Office of the Solicitor General, has already filed a motion with the Supreme Court reiterating the unpaid obligation. 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 committee that NOW Cable 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.
“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 observed.
Poe told committee members that Sen. Ralph Recto relayed to her that he would like to reserve his time to question NOW Cable and NEWSNET in the next public hearing, with Sen. Joel Villanueva also raising questions on the applications of the two telcos. “We have some questions with regard to these two franchises,” said Sen. Villanueva.