Commission on Audit

Anyare, IBC 13? Quo vadis, DBS 35?

(Requested by: Gregory Maximinian)

WARNING! This article can cause some readers to get butthurt. The author does not demean his faith but to know better about the situation. Read, reflect and react cautiously.

THE TRUTH shall set us free. This is the Biblical concept that is mostly agreeable and applicable in our daily living — whether religious or not — but at the same time, we also believe in the secular philosophy about the concept of truth: it does hurt.

IBC and DBS

In this article, we will tackle and apply such aspects to two distinct television networks — IBC 13 and DBS 35 — and know the status of their whereabouts and find their common ground.

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Government gets green light for IBC privatization

With the approval of Malacanang, IBC 13 will no longer have to shut down but will be challenged under the hands of the potential private bidder.

With the approval of Malacanang, IBC 13 will no longer have to shut down but it will be challenged under the hands of the potential private bidder.

WE MARCHED on a long crusade for the fate of Broadcast City, whether to privatize or to shut down, until Malacanang Palace finally gave a nod to see the light of hope in the midst of their consistent and constant financial and operational gloom.

With only a bit more than five months left in office, President Benigno S. Aquino III approved the privatization of Intercontinental Broadcasting Corporation (IBC) based on the recommendation of the Governance Commission for GOCCs (GCG).

This news has just received after IBC was recently snubbed out from covering another season of the PBA D-League in favor of AksyonTV after the blocktimer, Asian Television Content (ATC), had incurred debt that would be impossible to pay.

GCG gets to the ground

The GCG says that privatization of Channel 13 “rationalizes the State’s portfolio in the Communications Sector in view of the overlap with PTV-4, which is already sufficient to address market failures in the private broadcast industry, such as providing programs with social value but are not considered profitable.” This comes in the wake of the recent revitalization of PTV, as mandated by Republic Act No. 10390, which identified the privatization of IBC as one of the sources of funding the increase in sole state broadcaster’s legal capital from P 1 billion to P 6 billion.

IBC was also in financial distress, operating at an average net loss of P45.26 million from 2010 to 2014 and receiving operational subsidies amounting to P23.56 million in 2015. According to the 2014 audit report released by the Commission on Audit, IBC suffered into the capital deficiency of PHP 893.5 million.

IBC: Not just a repeat offender but repertoire of failure

Throughout the years, IBC becomes the laughingstock and the “rotten apple” among the fresh ones on the VHF frequency. It ended up being unrecognized by the masa unless they recall their good old days.

Aside from being a repeat offender of noncompliance to MTRCB ratings, IBC suffered the worst as what the Turf calls the “broadcast repertoire of failure.” (Sorry fantards, it is not ABS-CBN, GMA, TV5 and/or CNN Philippines that you think is/are the worst network/s “ever”.)

Aside from over-relying  and diversifying home shopping blocks, IBC ranked up dead last as they failed to compete with the Big 3, CNN Philippines and even her sister network, PTV, on necessary news equipment such as they procured no live outside broadcast (OB) vans and/or live cameras, no live phone patches and of course, lack of virtual news graphics. Not to forget, the lack of utilizing social media and a working website (although IBC had one until their domain expired back in 2005) became a hindrance to the competition and recognition for Filipinos in the Information Age.

The how’s and how much’s of the bid

The privatization of IBC will be done through public bidding with an estimated floor price of P1.977 billion. A committee composed of representatives from GCG, the Presidential Communications Operations Office (PCOO), and IBC itself shall implement and conduct the said process.

That said, for the potential bidders, we wish to make the utterly forgotten, abandoned and fallen network rise again from hopelessness and shine once more to compete with vitality.

For more information, click here for Q&A of IBC privatization.


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[IBC 13 logo courtesy of Intercontinental Broadcasting Corporation / Wikimedia Commons]

COA Audit Reports of PTV, IBC released

The Commission on Audit (seal pictured) is responsible for auditing government agencies and government-owned and-controlled corporations. Last Friday, the two government stations has released its audit report.

The Commission on Audit (seal pictured) is responsible for auditing government agencies and government-owned and-controlled corporations. Last Friday, the constitutional commission released the audit reports of two government stations.

THE COMMISSION ON AUDIT (COA) recently disclosed the audit reports for calendar year 2014 of the two government-owned stations, People’s Television (PTV) and Intercontinental Broadcasting Corporation (IBC) to the public Friday, July 31.

PTV: The equity has been doubled!

According to the audited financial statements, Telebisyon ng Bayan almost doubled its net worth with PHP 689.8 million from last year’s PHP 373.4 million. In the statement of comprehensive income, the sales revenue was slightly dipped to 133.2 million from PHP 143.6 million last year but made a net income with PHP 316.4 million (inclusive of subsidy) or 28.4% return on investment (ROI).

Factors behind such a short heyday in Visayas Avenue, according to the audit report, include coverage of:

  • State visit of US President Barack Obama (April 28-29),
  • World Economic Forum on East Asia (May), and
  • Congressional hearings
    • Pork Barrel Scam (since 2013 – June) and
    • Makati City’s anomalies (September – ongoing), just to name a few

Other than political coverage, the launch of their first Koreanovela “Here Comes Mr. Oh” (currently on hiatus), which garnered 800,000 viewers, was also behind such positive performance.

Meanwhile, her younger sister in Broadcast City told another side of the story.

IBC 13 falls off bottomless cliff

The audited financial statements reflected on Channel 13 the continual suffering, both in financial position and performance. The balance sheet dictates the worst picture with the bloated capital deficiency of PHP 893.5 million — 23.9% more than last year’s restated value of PHP 721.3 million. The most notable liability with priority on the network, the Retirement/Separation Pay Payable, accrued PHP 654.7 million (up 12.4% from last year) that it cannot easily be paid with all assets combined.

Operation wise, IBC suffered the worst net loss (numerical and magnitude wise) with PHP 172.2 million (2.5 times the amount than last year with PHP 70.4 million). Digging deeper into detail, gross income and operating costs are directly related to sales revenue but administrative costs continue to rise annually.

Factors of failure, aside from the most obvious perennial obstacle on relying EZ Shop, the sole home shopping to make the network’s ends meet, include the opportunity loss for the three-month trial of the primetime block deal with Asian Television Content Corporation (ATC) from June 2 to August 31. ONE FCKawaii International,  and the PBA D-League were not able to spare them from operational bottomless pit at the last minute.

Details of financial information on two networks are now available on the COA website.


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[Photo courtesy of Wikimedia Commons / Commission on Audit]