Press Release
December 4, 2007

PIMENTEL ASSAILS CONTINUED DELAY IN PRIVATIZING
CHANNELS 9 AND 13

Senate Minority Leader Aquilino "Nene" Q. Pimentel, Jr. (PDP-Laban) today expressed dismay over the long-stalled government plan to privatize two sequestered television networks -- Radio Philippine Network-Channel 9 and Intercontinental Broadcasting Corporation-Channel 13 that have prevented them from upgrading their programs to survive the stiff competition in the broadcast industry.

Pimentel decried that the privatization package for RPN-9 and IBC-13, which was drawn up by a reputable private investment firm at considerable cost to the government a few years ago, has been put to naught because of unresolved legal disputes over the ownership of these networks.

He said it is very unfortunate that more than two decades after the two TV networks were sequestered by the Presidential Commission on Good Government (PCGG), the ownership issue is still locked up in court litigation.

"I am really amazed that after 21 years, they still do not know who are the real owners. RPN-9 and IBC-13 are still under the category of sequestered firms in the government which is contrary to the government's free market policies," he said.

Information furnished by finance and press officials of the executive branch to the Senate revealed that in the case of RPN-9, the estate of the late Ambassador Roberto Benedicto is trying to reclaim up to 40 percent equity of the broadcast network.

The ownership cases involving the two sequestered TV firms are still pending in the Court of Appeals, the Sandiganbayan and the Supreme Court.

Pimentel said the inordinate delay in the privatization of RPN-9 and IBC-13 is unfair to their employees who continue to suffer due to the declining advertising revenues.

He said he has received complaints from the employees that their salaries are oftentimes delayed owing to the poor financial conditions of their companies.

Worse, he said the management of IBC-13 has allegedly entered into some sweetheart deals with some favored blocktimers which are unfavorable to the network and prejudicial to the employees.

Pimentel said the employees of RPN-9 and IBC-13, many of whom have stayed with these companies for several years, have expressed willingness to be separated or retired but the payment of their benefits will be derived from the proceeds of the sale of the networks.

He said the employees are very much worried that if a large part of the proceeds of the sale will go to claimant-owners and creditors, the money that will be left may be insufficient for their retirement and separation benefits.

Pimentel said the government's indecision in sorting out the obstacles to the privatization of RPN-9 and IBC-13 merely fuels the suspicion that they are being kept under state control because they are useful as propaganda outlets for the Arroyo administration, specially during elections.

"We know very well that during election time, the television time over Channels 9 and 13 are devoted mainly to government political propaganda, thereby depriving the opposition of equal time as mandated by the regulations of the Commission on Elections," he said.

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