PNoy admin to privatize RPN in 2011, IBC in 2012

The Aquino administration aims to privatize sequestered television stations RPN 9 and IBC 13 in 2011 and 2012, respectively, Presidential Communications Operations Office (PCOO) Secretary Sonny Coloma said Tuesday. "[For] the privatization of RPN, the timeline is within 2011," Coloma told reporters after the Senate finance committee hearing on the proposed budget of the PCOO for 2012. He explained that 34 percent of RPN is already owned by Solar Entertainment, 32 percent by Far East Managers and Investors, 20 percent by government, and 14 percent by private stockholders. Coloma said the Privatization Council under Finance Secretary Cesar Purisima is now working out the sale of government’s 20-percent stake in RPN, which he said will be done through competitive bidding. "Hopefully that [with] its completion this year, we will proceed with the privatization of IBC 13 by 2012," he added. Aside from the Finance Department, the council representatives are from the National Economic and Development Authority (NEDA), Department of Trade and Industry (DTI), and the Privatization Management Office (PMO) RPN 9 and IBC 13 were sequestered after then-President Corazon Aquino, the late mother of President Benigno Aquino III, took over in 1986, replacing ousted dictator Ferdinand Marcos. The networks were put on auction starting that year. "There is a policy directive [from] the President that the sequestered broadcasting organizations that are now under the supervision of the government will have to be privatized eventually," said Coloma. On the other hand, Senate finance committee chairman Sen. Franklin Drilon asked Coloma to review the possibility of converting the Bureau of Broadcast Services and 32 state radio stations into Government Owned and Controlled Corporations (GOCC). "(A) GOCC can operate without any government subsidy and will have more flexibility," he told reporters after the hearing. Disadvantageous IBC deal? Meanwhile, Drilon also asked Coloma to "look closely" into the contract entered into by the Arroyo administration with the R-II Builders Group of Reghis Romero Jr. Coloma had said that a significant asset of Channel 13 has in effect been privatized because the network entered into a joint venture agreement with Prime Realty, which is associated with R-II Builders. Under the agreement signed in March 2010, 3.5 hectares of Broadcast City shall be developed into a real estate project. The project is valued at P780 million, P280 million of which has been paid out in cash to satisfy the claims of the employees in terms of contractual benefits owed to them by the network and in accordance with the collective bargaining agreement Since it is a joint venture agreement with a real estate developer, the remaining 0.5 hectares will be used for the broadcast facilities of IBC 13. Drilon, however, said that the deal should be examined. "The very essence of the contract itself whether or not is not is financially disadvantageous must be closely examined," he said. He likewise questioned whey the contract was signed by then Philippine Information Agency director-general Conrado Limcaoco on behalf of the President. "The power to sign is reserved exclusively by law to the executive secretary. That designation of the executive secretary as the only official who can sign by authority of the President cannot be altered by an executive order or an issuance of the President," he said. Coloma said that they have ongoing negotiations for the revision of the said contract. — VS, GMA News