Case Digests (Ethics,Political Law,Labor,CrimLaw,Remedial)

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Admin Case Digest

Divinagracia v. Consolidated Broadcasting System, Inc. (cancellation of certificates of public convenience of telecommunication legislative franchisees)

Administrative agency involved – National Telecommunications Commission (NTC)

Facts:
Divinagracia, alleging to be the actual and beneficial owner of 12% of Consolidated Broadcasting System, Inc (CBS) and People’s Broadcasting Service, Inc. (PBS), filed two complaints with the NTC against CBS and PBS praying for the cancellation of all the provisional authorities or Certificates of Public Convenience (CPCs) as well as the legislative franchise issued to CBS (R.A. 7582) and PBS (R.A. 7477) on account of the alleged violation of the conditions set therein, to wit: failure to comply with the mandated public offering of at least 30% of their common stocks. NTC dismissed the complaints. While positing that it had full jurisdiction to revoke or cancel CPCs for violations or infractions of the terms and conditions embodied therein, the complaints constitute collateral attacks on the legislative franchise and that NTC is not competent to render judgment on such issue.

Issue:
WoN the NTC has the power to cancel the CPCs it has issued to legislative franchisees.

Held:
The Radio Control Act in 1931 requires broadcast stations to obtain a legislative franchise and such requirement was not repealed by E.O. 546 which established the NTC, the administrative agency which has regulatory jurisdiction over broadcast stations. When the Congress grants a legislative franchise, it is the legal obligation of the NTC to facilitate the operation by the franchisee of its broadcast station and since public administration of the airwaves is a highly technical function, the Congress has delegated to the NTC the task of administration over the broadcast spectrum. The licensing power of the NTC arises from the necessary delegation by Congress of legislative power geared towards the orderly exercise by franchisees of the rights granted them by Congress.

The life and authority of an administrative agency emanates solely from an Act of Congress, and its faculties confined within the parameters set by the legislative branch of government. Even as the NTC is vested with the power to issue CPCs to broadcast stations, it is not expressly vested with the power to cancel such CPCs, or otherwise prevent broadcast stations with duly issued franchises and CPCs from operating radio and television stations. Although the Radio Control Act empowered the government through the then Secretary of Public Works and Communications to suspend or revoke issued licenses, the NTC did not retain such power when it was established by E.O. 546 to replace the previous regulatory agencies. Said E.O. 546 promulgated by then President F. Marcos in the exercise of his legislative power withheld from it the authority to cancel licenses and CPCs.

-andylim0422

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