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- Karen Davila speaks up about critics accusing ABS-CBN of being foreign-owned.
- It is said that it’s because the company offered its Philippine Depositary Receipts to foreign businesses.
Ever since ABS-CBN was issued a cease and desist order, one of the main points of those who oppose the network’s franchise renewal is regarding their Philippine Depositary Receipts (PDRs).
Critics have claimed that the network is supposedly foreign-owned because it had sold PDRs to foreign companies.
ABS-CBN broadcaster and news anchor Karen Davila took her frustration to Twitter as to why the politicians are singling out the Kapamilya network regarding PDRs when GMA-7 “have the exact stipulation.”
Key word: deliberately. Sinasadya.
Why single out ABSCBN on it’s PDRs when GMA7’s PDRs have the exact stipulation. Presumption of regularity and compliance. https://t.co/VMWVZ0cZns
— Karen Davila (@iamkarendavila) June 11, 2020
Experts have claimed that ABS-CBN and GMA-7’s PDRs are so similar, it’s even almost the same word per word.
Exactly. Mismong SEC na ang nagsabi. Pareho lang ang PDRS ng ABSCBN at GMA. Sana pantay ang tingin. https://t.co/l7Z1N33LDb
— Karen Davila (@iamkarendavila) June 11, 2020
Pia Magalona, MJ Felipe, and other netizens have also reacted regarding the clarification of the issue.
Malinaw pa sa sikat ng araw at buwan at lahat ng bituin sa langit: walang violation re PDRs ang ABSCBN, which was categorically answered by the SEC representative.
— Pia Magalona ⁷ (@piamagalona) June 11, 2020
Why single out ABS-CBN on PDRs? Kung marami pala kayong issue sa PDRs, bakit ABS-CBN lang bigla ang binubusisi nyo? GMA7 had the same PDRs. Sagutin niyo yan.
— MJ Felipe (@mjfelipe) June 11, 2020
So Mike Defensor is saying PDRs are instruments used to hide ownership.
Yan ang akala mo. Sa factual lang tayo. SEC is our stock market authority and it already confirmed PDRs don't have ownership.
— Y 0 L 0 (@itsY0L0) June 11, 2020
The issuance of PDRs is a common practice among Philippine companies, including ABS-CBN, GMA Network, and even Rappler.
ABS-CBN CEO Carlo Katigbak has then explained that the Securities and Exchange Commission (SEC) had deemed their PDRs as legal.
“With regards to the PDRs, our sentiment is we acted in good faith by going to the SEC to secure approval before offering to the public. At the time, the SEC agreed was legal,” he said.
“If the SEC, a court of law, or even Congress wishes to disqualify the use of PDRs equally across the media industry, ABS will be willing to modify and comply with the order, if so directed.”
In a joint congressional committee on June 11, the PDRs of all local broadcasters were scrutinized for possible violations of the country’s foreign ownership restriction in mass media.
“Ang PDRs ay pagtatago sa tunay na pagmamay-ari ng dayuhan,” Anakalusugan party-list Rep. Michael Defensor erroneously claimed.
GMA Network then released a statement regarding the PDR issue.
.@gmanetwork STATEMENT ON THE PDR ISSUE https://t.co/W1O88ONNbT pic.twitter.com/xnbcQ1NjcJ
— GMA Network (@gmanetwork) June 11, 2020
