Tuesday, October 14, 2008 Bill repealing radio station's franchise opposed By Reynaldo G. Navales
ANGELES CITY -- First District Representative Carmelo Lazatin has vowed to oppose a House Bill seeking to repeal the franchise of GV Broadcasting System based in this city.
Lazatin said he will interpose objection against House Bill (HB) 5028 titled "An Act repealing RA (Republic Act) 8591 entitled an Act Amending RA 8169, an Act granting GV Broadcasting System Inc., a franchise to construct, install, maintain and operate for commercial purposes radio broadcasting stations in the island of Luzon and for other purposes."
The bill was filed by Agusan del Sur Representative Rodolfo Plaza last September 8.
According to Lazatin, the allegations against the radio station are unfounded and false.
"I believe that my colleague, Representative Plaza, was provided with false and malicious information by a group of people as part of an ongoing effort to discredit GV Broadcasting and its shareholders," Lazatin said.
Plaza, in his bill's explanatory note, alleged that the owners of GV Broadcasting were mere speculators who had no intention of building real businesses and pursuing commercial operations, but were simply out to turn around and then quickly resell the franchise.
Lazatin, the author of the RA 8169, the original franchise of GV Broadcasting System and Republic Act 8591, its amended franchise, said the founding shareholders of GV Broadcasting are his constituents in the First District of Pampanga and are known as bona fide entrepreneurs.
"The founding shareholders of GV Broadcasting invested their hard earned money and industry in GV Broadcasting," he said.
Lazatin added that the broadcasting system has been in continuous commercial operation for a period of 25 years and its radio stations-DWGV 99.1 Mhz Pampanga, DWGV 792 Khz Pampanga and DZGV 99.9 Mhz Batangas are the leading radio stations in their respective areas of operation.
The solon added that through its commercial operations, GV Broadcasting also created and provided jobs to the people.
He added that the original franchise and amended franchise of GV Broadcasting were granted by Congress only after a thorough examination and resources of the company and the sincerity of its founding shareholders.
The management of GV Broadcasting sought the advice of Lazatin when they saw an opportunity to expand its operations into new broadcast services by investing new capital in emerging broadcast technologies.
"I encouraged them to do so and to invite new investors into the company since I was impressed by the vision, industry and track record of these founding shareholders and by their keen desire to expand their business operations in Pampanga," Lazatin said.
Lazatin believed that there was no impropriety at all in the entry of a new investor in GV Broadcasting.
"Neither was there a violation of the franchise of GV Broadcasting by such entry. The entry of the new investor in GV Broadcasting was in accordance with and consistent with the plain terms of RA 8591," he added.
Under Section 10 of RA 8591, it is very clear that that Congressional approval is not required for the "issuance of shares to any investor pursuant to or in connection with any increase in the grantee's authorized capital stock which shall result in the dilution of the stockholdings of the grantee's then existing stockholders."
"GV Broadcasting and its new investor at that time simply followed the terms of this Section 10," he said.
