Philippine News
‘Unjust’ for thriving ABS-CBN to have unpaid debts: Palace
MANILA – Malacañang on Thursday questioned the supposed refusal of local media giant ABS-CBN Corp. to pay off its debts to the state-owned Development Bank of the Philippines (DBP).
Presidential Spokesperson Harry Roque said it was “unjust” for ABS-CBN to get away by not paying its PHP1.6 billion in loans to DBP.
In a virtual Palace press briefing, Roque noted that the network was “thriving” when it was still in debt to DBP.
“Bakit ang ABS-CBN, hindi naman siya nalulugi noong panahon na ‘yun, binigay lang niya ‘yung asset niya sa SPV dahil ayaw niyang bayaran. At isa sa pinagkakautangan niya, itong gobyernong bangko na DBP (ABS-CBN was not experiencing bankruptcy that time but still decided to sell its asset to SPV because it did not want to pay its loans to DBP, a government bank),” he said.
He said the case of ABS-CBN is different since it was not bankrupt at the time its huge debts was sold to special purpose vehicle (SPV) or financial firms created to assume bad loans of banks.
“Hindi tama na hindi naman nalulugi, hindi mo bayaran utang mo at binigay mo sa SPV (It’s unacceptable that you are not bankrupt and yet, you did not pay your loans and even decided to sell it to SPVs),” Roque said.
ABS-CBN stopped its broadcast operations on May 5, 2020, or a day after the expiration of its 25-year legislative franchise.
On Monday, Duterte said he would block ABS-CBN from getting a license to operate from the National Telecommunications (NTC) unless the network can settle its tax obligations to the government.
Duterte also sought the intervention of the Office of the Ombudsman about the supposed condonation of ABS-CBN’s loans to DBP.
‘Disadvantageous’ to gov’t
Roque hoped the Ombudsman would be able to determine whether ABS-CBN’s case is “disadvantageous” to the government.
“Sabihin na nating legal pero kung hindi naman ito pabor sa gobyerno at binabayaran ang utang na due sa isang pampublikong bangko na hindi naman nalulugi ang ABS-CBN, eh tama ba ‘yun (Let’s say it’s legal, but if it’s not favorable to the government and if ABS-CBN failed to pay its loans even if it’s not bankrupt, is it right)?” he said.
Roque said the executive branch would await the decision of the anti-graft body.
“Ang desisyon po ni Presidente, hahayaan na niya ang Ombudsman na magdesisyon diyan… Hintayin na lang po natin ang magiging desisyon ng Ombudsman (The President has decided to let the Ombudsman rule on it. Let’s just wait for the Ombudsman’s decision),” he said.
The DBP on Jan. 19 already denied that it condoned or wrote off PHP1.6 billion in loans to firms controlled or affiliated with the Lopez family that turned sour as a result of the lingering 1997 Asian financial crisis.
The loans granted to the Lopez companies were part of the PHP9.55 billion in non-performing loans and non-performing assets DBP sold in an auction to two SPVs.
The loans of business entities formerly and currently owned by the Lopezes were sold by DBP to Lehman Brothers Asian Investment Ltd. for PHP9.55 billion and subsequently sold to other firms.
Ruth Abbey Gita-Carlos
