Did SIAM lease its franchise without Congress approval?
PB member Gigi Sanchez says she was not aware of the provisions of SIAM’s legislative franchise, but is pleased with the move to investigate the network’s management contracts. (CDN FILE PHOTO)
Radio network Sarraga Integrated and Management (SIAM) Corp. has come under fire, with Congress poised to look into the lease of its franchise to other entities.
San Jose del Monte Rep. Arturo Robes, in a resolution adopted on August 5, said the network may have violated the provisions of its 25-year franchise when it signed management contracts with PAFI Techno Resources Corp. and Cebu CFI Community Cooperative, Inc. allegedly without prior approval from Congress. The franchise is set to expire in two years.
The resolution is the latest twist in the battle for control over the Bantay Radyo stations.
SIAM had tried to turn over Bantay Radyo management, which has been under the Sanchez-led PAFI for more than a decade, to Cebu CFI, a cooperative identified with the Garcia family.
Bantay Radyo stations dyDD, dyHH and dyZZ in Cebu and Negros went off the air on Aug. 2. They still cannot be heard on air through their regular frequencies, although they hook up to dyCM 1152 kHZ every now and then.
Provincial Board Member Grecilda Sanchez, PAFI president, said she was not aware of the House resolution until Cebu Daily News informed her yesterday.
“I am aware of the letter that was sent by Jess (Villarba) to the franchise committee, but as to the resolution, I was just recently told,” she said in a text message. Villarba, a PAFI employee, sent a letter to the Chairman of the House Committee on Legislative Franchises asking for guidance and assistance on the termination of SIAM’s contract with the company.
Sanchez was pleased that Congress decided to act on Villarba’s letter.
“Daghan kaayo ang naapektuhan ani pagkapalong sa three ka stations. Whole Central Visayas nga pirmi naminaw, na-deprive na gyud sa public information service nga nahunong maduol na sa duha ka bulan (Many people in Central Visayas were affected when the three stations went off air. They have been deprived of our public information service for nearly two months now),” she added.
Sanchez said she was also not aware that SIAM had to inform Congress when it leased the network of radio stations to PAFI in 2002.
Since then, PAFI has only been in contact with the National Telecommunications Commission (NTC) for concerns, she added.
CDN tried to reach SIAM president Francisco Sarraga for comment, but calls made to his phone were unanswered.
SIAM was served in August a court injunction preventing the takeover by Cebu CFI of the Bantay Radyo management.
Despite the court injunction, Bantay Radyo was forced off the air on Aug. 2 after SIAM removed electronic devices called exciters from the transmitters.
Judge Alexander Acosta of RTC Branch 9 in Cebu has ordered the return of the exciters, but SIAM has not returned the devices yet.
Robes, in his resolution, asked the House Committee on Legislative Franchises to look into the lease, allegedly without Congress approval, of SIAM’s franchise to PAFI and, later, to Cebu CFI.
Under Section 11 of Republic Act 7478, the network is prohibited from leasing or assigning its franchise or rights and privileges acquired to any person, firm, corporation, or entity without prior approval from Congress.
“By virtue of two management contracts, SIAM has essentially leased its franchise to PAFI, then later on to Cebu CFI, without prior approval from Congress, in violation of Section 11 of its franchise,” the resolution stated.
SIAM entered into a management contract with PAFI on August 1, 2002, granting the latter the right to manage and operate dyDD, dyHH, and dyZZ, collectively known as El Nuevo Bantay Radyo.
PAFI, which is controlled by the family of the late vice-governor Gregorio Sanchez Jr., took charge of the day-to-day operations of Bantay Radyo, including programming and engineering.
The franchise lease, which was repeatedly renewed until this year, includes all facilities, equipment, and machineries.
SIAM decided to terminate the contract with PAFI this year and entered into another management deal with Cebu CFI Cooperative, which was founded by retired judge Esperanza F. Garcia.
The retired judge is the wife of former congressman and governor Pablo Garcia and mother of former governor, now Rep. Gwendolyn Garcia.
CFI was supposed to take over the three Bantay Radyo stations last August but PAFI executives were quick to take the matter to the court.
On August 26, the court issued a preliminary injunction ordering SIAM to maintain the status quo while a civil case is being heard.
RA 7478, signed on May 5, 1992, granted SIAM a franchise to construct, install, operate, and maintain for commercial purposes radio and television broadcasting stations in the Philippines for 25 years. The franchise will expire in 2017.
“The importance of the non-transferability clause, having long been incorporated in legislative franchises granted to public utilities as early as 1950s, cannot be overemphasized,” Robes said in his resolution.