Lawyer foresees ABS-CBN’s permanent closure in case gov’t decides to collect P1.97T fines incurred by Kapamilya

In another installment of the Facebook series “Ubos na Katol”, Atty. Nick Nañgit discussed the ramifications of the P1.97T fines incurred by ABS-CBN because of violations of its franchise.

In a Facebook post, Atty. Nick stated that the imposition of penalties or fines is under the jurisdiction of the NTC.

Atty. Nick added that the NTC has a list of the violations re telecommunication and the corresponding fines for every violation. These fines should have been imposed a long time ago, not when Congress only discovered it. Hence, this should be investigated and hold the heads of the concerned agency accountable, in the event there is negligence on their part.

Atty. Nick reckoned that since there is such a thing as due process, the NTC must first come out with an order and give ABS-CBN a chance to explain before the NTC will issue a resolution or order to collect the said fines.

Atty. Nick alerted the public to expect ABS-CBN to bring this to court with the prayer that the NTC order to collect fines will not be implemented but the court will decide.

If and when the court is not in favor of ABS-CBN, for sure they will elevate the case to the Supreme Court. If they lose their case at SC, that’s the only time they are obliged to pay the fines. If they refuse to pay the penalty for whatever reason, that’s the time the process of escheat of ABS-CBN’s properties will commence, in favor of the government. The law gives 5 years for the execution of the decision.

That’s the reality. It’s stated in our Constitution, in our laws and rules.

The process of escheat will only happen if the government does not the own lot occupied by ABS-CBN.

This is where the concept of “builder of bad faith” comes into play. For example, you know you don’t own the land and yet, you proceeded to put up a building. Squatter mentality so to speak.

If proven that the government own the land, the government will go after the other properties of ABS-CBN and as the payment for the penalty. Atty. Nick said this is because the government is not allowed to the collect penalties from its own property. That’s cheating.

Because of the huge possible fines, Atty. Nick warned, this will lead to the permanent closure of ABS-CBN. The responsibility to pay the fines falls on the owners of ABS-CBN, however, it is only limited to the extent of their investment or ownership. ABS-CBN is a corporation

The owners or stockholders can only be held accountable (including Angel Locsin and other Kapamilya who own ABS-CBN shares) until the limits of their private investments, if this is pierce under the veil of “corporate entity”.

Atty. Nick stated that this is another series of cases. And that only happens when they did not dispose their private properties or sell it to other people or they did not hide their millions in tax haven countries or they have not changed citizenships.

Atty. Nick stated this is where the payment of obligations to banks and the status of registration of ABS-CBN in SEC comes in. He also urged the public not to forget ABS-CBN’s millions or billions of syndicated loans without collateral.

Meanwhile, ABS-CBN will ignore the employees they used to fight in their behalf. NGANGA!