According to the Technical Working Group (TWG) of the Committee on Franchises of

the Congress, the ABS CBN is to be denied of a franchise based on the following grounds: (1)
Dual citizenship of its Chairman Emeritus, Eugenio “Gabby: Lopez III as against the 100%
Filipino requisite for the ownership and management of mass media as prescribed by the 1987
Constitution. (2) Issuance of Philippine Depository Receipts to foreigners which allowed foreign
ownership in ABS-CBN, this possibly violated the constitutional provision against ownership
and management of mass media by foreigners; (3) Unlawful return of assets to the Lopez Family
after martial law. In the course of the hearings, ABS CBN was not able to prove beyond
reasonable doubt that it is indeed the absolute owner of its assets and properties and not the
government or someone else. To note, the submitted copy of ABS CBN’s Transfer Certificate of
Title of its Mother Ignacia property where its main broadcast station and transmitter are located
has no actual record in the Register of Deeds. Likewise, there are no records of the arbitration
proceedings, there was just a “Compromise Agreement” between the parties. There are also no
records of proceedings leading to the said Compromise Agreement; (4) Violation of its previous
franchise by operating a pay-per-view channel in its ABS CBN TV Plus (the KBO Channel)
without prior approval or permission from the National Telecommunications Commission; (5) Its
unauthorized use of AMCARA’s legislative franchise, and ABS CBN apparent use of a dummy;
(6) The less than exemplary labor practices including the many documented labor law violations
like the failure to regularize many of its employees. To note, only 25 % or 2,661 out of total
11,701 total workers of ABS CBN Corporation and all its subsidiaries are regular employees; (7)
Questionable and unjust tax avoidance schemes, which are not necessarily illegal, but not also
commendable and praiseworthy, and borders on being immoral when viewed in light of the
billions of pesos lost revenue for the Philippine government, which could have funded much
needed basic services for the Filipino people; (8) Biased reporting, inappropriate program
content, and political meddling. Furthermore, the TWG added that, “It is what it is – a denial of a
privilege granted by the State because the applicant was seen as undeserving of the grant of a
legislative franchise.” The said congressional power to grant franchise, is clearly stated in Art.
XII of the 1987 Constitution.