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‘Why single out ABS-CBN?’ Karen Davila asks for fairness regarding PDRs

Davila stated that GMA-7s has the same PDRs so why is the Kapamilya network being singled out?

  • 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.”

Experts have claimed that ABS-CBN and GMA-7’s PDRs are so similar, it’s even almost the same word per word.

Pia Magalona, MJ Felipe, and other netizens have also reacted regarding the clarification of the issue.

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.

Written by J M

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