NTC fines GMA-7 Network 600 Million pesos for permit filing lapses

MANILA, Philippines – Regulators have imposed a fine of P685,300 on GMA Network Inc. for neglecting to renew on time its permit to operate in eight cities and one province.

The network is protesting the imposition of fines, however, saying the period for imposing them had prescribed; and describing the sums leveled as exorbitant.

Per records of the National Telecommunications Commission (NTC), the station’s certificate of public necessity in the cities of Cagayan de Oro , Ozamiz, Cotabato, Pagadian, Roxas and Puerto Princesa and in the Municipality of Kalibo, Aklan had expired on December 17, 1999 but GMA only renewed it over eight years later on May 27, 2008.

Despite the lapse, the NTC granted GMA’s petition for renewal last August 31, allowing GMA to continue operating in those provinces up to but not beyond December 31, 2014. While allowing the renewal, the regulators ordered GMA to pay a fine of P308,000.

The NTC issued similar orders renewing GMA’s permit to operate in Masbate and Dipolog City,  but again imposed a hefty fine of P377,000.

GMA’s CPN lapsed on January 10, 2000, but it filed its application for renewal two years later on September 6, 2002. For this,  regulators imposed a fine of P96,600.

The CPN in Dipolog City lapsed on August 20, 2000 and GMA filed an application for renewal on April 30, 2008. NTC fined it P280,700.

In protesting the fines imposed, GMA said:  “With all due respect, GMA moves for the partial reconsideration of the said order dated August 31, 2011 insofar as it imposes a fine against the former. The Honorable Commission erred in imposing a fine against applicant GMA notwithstanding that its violation, if any, had already prescribed.” 

 The NTC erred in imposing a fine without the filing of an original complaint under the 2006 NTC revised rules of practice and procedures, GMA stressed.

The imposition of penalty in excess of P25,000 is also contrary to the policy embodied in Chapter 4 of the Public Service Act, the network said.

“Assuming for the sake of argument that applicant GMA committed a violation when it operated the subject UHF TV stations from December 17,1999 to May 27, 2008, the latter respectfully emphasizes that such violation had already prescribed when the Honorable Commission issued the present order. With all due respect, the imposition of fines against applicant GMA embedded in the August 31, 2011 order without the filing of an original complaint… violates the fundamental principle of due process.  Indubitably, it should be reversed insofar as the imposition of the fine is concerned,” said GMA.

The network described the amount imposed as “exorbitant and unconscionable under the circumstances, considering among others, that the omission herein was due to pure inadvertence without any intent of abandoning its obligations as a public service.”

SOURCE: Interaksyon.com