REP. Ramon Gutierrez (1-Rider PL) yesterday filed House Bill No. 9710 seeking the revocation of the legislative franchise given to Sonshine Media Network International (SMNI) for its supposed various violations and unethical practices, particularly the dissemination of fake news and red-tagging.
“Swara Sug Media Corporation was granted its original franchise under Republic Act 8122 on July 16,1995. In 2019, Republic Act 11422 was enacted renewing the same. In the course of its operation, however, Swara Sug committed multiple grave infractions in violation of its franchise grant,” HBN 9710 said
Gutierrez noted that during the hearings of the Committee on Legislative Franchises, it “was able to identify numerous transgressions and abuses on the part of franchise grantee – Swara Sug Media Corporation (SSMC) which operates under the business name SMNI.”
The House committee probe was called after SMNI host Jeffrey Celiz, on his “Laban Kasama ng Bayan” program, alleged that a “source” in Congress supposedly told him that Speaker Martin Romualdez has spent P1.8 billion for travel in just a year, a claim that was disproved by House Secretary General Reginald Velasco.
It was in the same network that former president Rodrigo Duterte lambasted the House leadership after the lower house stripped his daughter Vice President Sara Duterte of confidential funds under the proposed P5.768 trillion national budget for 2024.
“Swara Sug or SMNI has failed to deliver truthful and balanced reporting to its audience. As evidenced by various cases filed against it in the Kapisanan ng mga Brodkaster ng Pilipinas, National Telecommunications Commission, Movie and Television Review and Classification Board, and the Philippine courts, Swara Sug or SMNI has engaged in red-tagging and fake news peddling, labeling members of the House, the former vice president of the Philippines, and private persons as members of the New People’s Army,” the bill said.
It added SMNI “also attempted to create discord between the Upper and the Lower House by insinuating that unnamed and unverified Senate sources have claimed that Congress has spent P1.8 billion in travel expenses in 2023 without any basis or proof.”
On Monday, the franchise panel approved a committee report endorsing Rep. Margarita Nograles’ (PL, PBA) House Resolution No. 1499 urging the National Telecommunications Commission (NTC) to suspend the operations of SMNI.
Gutierrez said that during the panel’s December 5, 2023 hearing, it was established, and this was admitted by SMNI, that there were changes in the corporate structure of Swara Sug or SMNI that was not authorized by Congress, in violation of the franchise law.
“In this case, the majority owner of grantee – Swara Sug, the Executive Pastor of the Kingdom of Jesus Christ, the Name Above Every Name, Inc., effected several changes that affected its ownership. In 2006, it transitioned from being a non-stock, non-profit corporation to a corporation sole under Pastor Apollo Quiboloy. However, in 2023, the Executive Pastor changed hands anew, as Apollo Quiboloy was replaced by one Bro. Marlon Acobo in the corporation sole,” the bill said.
He noted that the terms of SMNI’s franchise are clear – “the grantee shall seek prior approval of Congress for any transfer, usufruct, or assignment of its franchise or the rights and privileges acquired thereunder to any person.”
“Even clearer, stated in the grant that failure to report to Congress such change of ownership shall render the franchise ipso facto revoked,” Gutierrez said. “Further, the mandatory requirements in Section 10 on the necessity for congressional approval and Section 11 on the dispersal of ownership requirement in RA 11422 are distinct and separate from the annual report required to be submitted by the grantee under Section 12 of the same Act.”
Gutierrez’s bill said SMNI also violated Section 11 of its franchise which provides that, “in accordance with the constitutional provision to encourage public participation in public utilities, the grantee shall offer to Filipino citizens at least thirty percent (30 percent) of its outstanding stock, or a higher percentage thereof that may hereafter be provided by law, in any securities exchange in the Philippines: Provided, that in cases where public offer of shares is not applicable, the grantee shall apply other methods of encouraging public participation by citizens and corporations operating public utilities as allowed by law.”
Section 11 of the franchise law states: “Non-compliance therewith shall render the franchise ipso facto revoked.”
“Even after twenty-nine (29) years of operation, they still failed to comply with the 30 percent requirement on dispersal of ownership,” the bill said. “Neither can Swara Sug claim compliance with the dispersal of ownership requirement through Jesus Christ Workers Members Cooperative’s 0.19 percent stake in Swara Sug, since the establishment of a cooperative as a mode of complying is not provided in its grant.”
Meanwhile, later yesterday afternoon, the House Committee on Legislative Franchises released Celis and co-host Lorraine Badoy-Partosa from detention on humanitarian grounds and in the spirit of the Christmas Season.
Paranaque Rep. Gustavo Tambunting said the release order was unanimously agreed upon by committee members in a meeting called to discuss Celis’ appeal to be released.
Tambunting clarified the release order has nothing to do with the petition for writ of habeas corpus filed by the spouses of Celis and Badoy before the Supreme Court.
“The committee decided to release Celis and Badoy purely on humanitarian grounds.
Tomorrow (Wednesday) is the last day of session and we do not want Mr. Celis and Ms. Badoy to spend their Christmas and New Year in detention,” he explained.
“The habeas corpus filed before the Supreme Court was never discussed during the meeting, and has no bearing in our decision,” he added.
In defending their move to cite the SMNI anchors in contempt, Tambunting maintained that the Supreme Court has held that congressional committees have the power to conduct investigations or inquiries in aid of legislation, and to exercise its power of oversight.
He said Article VI, Section 21 grants the power of inquiry not only to the Senate and the House of Representatives, but also to any of their respective committees.
“Clearly, there is a direct conferral of power to the committees,” Tambunting said.
Tambunting cited the Supreme Court decision in the case of Sabio vs. Gordon (G.R. No. 174177, 17 October 2006), which stated that: “The conferral of the legislative power of inquiry upon any committee of Congress must carry with it all powers necessary and proper for its effective discharge.”
“Otherwise, Article VI, Section 21 will be meaningless. The indispensability and usefulness of the power of contempt in a legislative inquiry is underscored in a catena of cases, foreign and local,” the Court said.
Tambunting said that corollary to the power to conduct inquiries and exact testimony from witnesses to carry out its legislative functions, the House of Representatives has the inherent power to punish a witness for contempt.
