MANILA (UPDATED) — The House Committee on Legislative Franchises adopted on Monday House Resolution 1499 that urges the National Telecommunications Commission (NTC) to suspend the operation of Swara Sug Media Corporation (SSMC) operating under the business name Sonshine Media Network (SMNI) for gross violations of its legislative franchise.

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House Assistant Majority Leader and Puwersa ng Bayaning Atleta (PBA) party-list Rep. Margarita Nograles also urged the Securities and Exchange Commission (SEC) to terminate its registration due to alleged fraud.

Voting anonymously with an abstention by Kabataan partylist Rep. Raoul Manuel, HR 1499 was adopted for plenary approval.

During the hearing, Nograles said SMNI committed gross violations of its franchise not only because of its irresponsible and reckless practice of broadcasting fake and baseless stories but also because of unlawful corporate practices.

Presenting a long list of SMNI's legislative franchise violations, Nograles said that SMNI flagrantly violated the Revised Corporation Code when it shifted from a non-stock, non-profit corporation into a Corporation Sole without securing the required written consent or a two-thirds majority vote from members belonging to the Kingdom of Jesus Christ (KJC) headed by televangelist Apollo Quiboloy.

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Citing Section 114 regarding religious societies, she highlighted the absence of proper authorization from the mandatory two-thirds of the 7 million-strong KJC.

Citing Section 114 of the Revised Corporation Code, Nograles said that “any religious society, religious order, diocese, or synod, or district organization of any religious denomination, sect or church, may, upon written consent and/or by an affirmative vote at a meeting called for at least two-thirds (2/3) of its membership, incorporate for the administration of its temporalities or the management of its affairs, properties, and estate .”

Nograles also accused SMNI of committing fraud when it submitted to the House panel SMNI’s General Information that was different from the one it submitted to the SEC.

She also cited SMNI's alleged deliberate dissemination of false information, directly contradicting provisions of its legislative franchise which prohibits the franchisee from using its stations or facilities “ for the broadcasting of obscene or indecent language, speech, act, or scene; or for the dissemination of deliberately false information or willful misrepresentation, to the detriment of the public interest.”

Nograles added that SMNI also violated its franchise for transferring its controlling interest without prior approval of Congress and for not reporting to Congress within 60 days after the transfer.

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She said SMNI also violated the terms of its franchise for failure to comply with the mandated 30% dispersal of ownership to the public.

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Nograles argued that this neglect not only undermined constitutional provisions encouraging public participation in public utilities but also rendered the franchise ipso facto revoked.

Nograles cited Article XII, Section 19, of the 1987 Constitution which unequivocally demands the regulation or prohibition of monopolies as this is against the public interest.

Nograles said that as representatives of the people, congressmen have the responsibility to ensure that the people shall be protected from false and malicious information.

“This is not an attack on the freedom of the press. Rather, we are defending the right of the people to have an accurate and true reporting so they can formulate honest opinions and thus, contribute positively to the society, “ Nograles said. - report from RG Cruz, ABS-CBN News