THE Intercontinental Broadcasting Corporation (IBC) is eyeing to finally undergo privatization after it settles its remaining almost P430 million remaining labor-related liabilities and the evaluation of its current assets by next year.
The amount is part of the over P1.1 billion worth of augmentation or ‘insertions’ being requested by the Presidential Communications Office (PCO) from the Senate to its P2.8-billion budget under the 2026 National Expenditure Program.
During the Senate budget hearing on Friday, PCO Acting Secretary Dave M. Gomez said that P428 million of the amendments in the 2026 proposed budget will be used as payment for the retirement benefits of 167 IBC Employees.
IBC 13 President and CEO Jose Policarpio, Jr. explained that it will be used to pay for the backpay of the workers, as ordered by the National Labor Relations Commission (NLRC).
He explained they were able to pay the first tranche of P230-million retirement benefits this year.
‘We have to retire all of them. We want to save P89 million and because this P89 million comprise of different benefits because during the previous owners of [IBC], they have low wages, but generous benefits. But we were [overtaken] by the decision of the NLRC to pay them a series of wage adjustments,’ Policarpio explained.
He noted they want to settle all of the labor-related claims as well as six remaining labor cases of IBC so they can start its privatization.
IBC is currently an attached government-owned and controlled corporation (GOCC) under the PCO.
Policarpio said they submitted a privatization plan to the Technical Working Group composed by the Department of Budget and Management, Governance Commission for GOCCs, Office of the Government Corporate Counsel, IBC, PCO, Office of the Government Corporate Counsel, and the Department of Finance.
‘Nobody will buy a company with such a big problem. But under our management, we were able to bring down its liability from P1.5 billion to P500 [million], but still depending on the problem of the payment of the new set of retirees, P428 million.I presume once we have finished all these problems, I assume the Office of the Executive Secretary or the Office of the President [will] probably push for privatization [of IBC],’ he said.
He said President Ferdinand Marcos Jr’s signing of Republic Act No. 12311, which extended the franchise of IBC by another 25 years, will boost the chances of the privatization of the said television network.
‘The franchise is a big factor in adding more value to the company. Plus of course, the biggest factor that will enable or invite the prospective bidders would be to take out all the labor problems because no financial, no business sector, any businessman would buy a company with a lot of labor problems,’ Policarpio said.
The Privatization and Management Office is currently conducting an assessment of IBC in preparation for its privatization.
Senators Loren Legarda and Sherwin Gatchalian backed the privatization of the IBC since they said the People’s Television Network, the other state-controlled television network, is already sufficient for the government’s needs.