IBC 13 in joint venture with Romero firm

Philippine Daily Inquirer 7 Apr 2010 By Paolo G. Montecillo

THE PRESIDENTIAL COMMISSION on Good Government (PCGG) has approved the creation of a joint venture between state-owned International Broadcasting Corp. (IBC) and the Romero family’s RII Builders Inc. for the construction of a residential and commercial complex on the television network’s 4.1-hectare property in Quezon City.

The joint venture is part of the sequestered TV station’s plan to clean up its balance sheet by seeking investors that will help the company repay as much as P650 million in unpaid employee benefits and property taxes.

In a statement, IBC said it had signed last March 24 a joint venture agreement with RII Builders, “that paves the way for the development of a commercial and residential complex on IBC’s sprawling 4.1 hectare Broadcast City property in Diliman, Quezon City.”

Signing on behalf of IBC were Network supervising secretary Conrado A. Limcaoco Jr., board chair Joselito G. Yabut, and president & CEO Jose B. Javier. On the side of RII Builders is its president and CEO Nathaniel Romero.

The PCGG has administrative control over the assets of the radioTV network, and the Office of the Government Corporate Counsel (OGCC), IBC’s standing counsel.

Since 2008, when the National Economic and Development Authority approved the guidelines on joint ventures involving state-owned corporations, IBC has been actively looking for partners to help upgrade its technical capabilities and boost its programming on the broadcast side, and to develop its real property as a special business venture.

“These efforts are aimed at improving IBC’s standing in the media industry, as well as addressing accumulated arrears in payments to suppliers and outstanding benefits to its employees,” the company said.

Under the joint venture, IBC will provide the land on which RII Builders will construct a new broadcast center that will house IBC and fellow government station RPN 9.

Part of the deal also mandates that RII Builders advance a “substantial” amount of cash representing IBC’s part in the complex’s future earnings, which can be used to pay off the network’s obligations.

IBC was set up by the Benedicto Group of Companies of the late Marcos crony Roberto Benedicto in 1975. The TV station was sequestered by the government after the fall of the Marcos administrationmore than two decades ago.

In 1992, the state assumed full ownership of the company following a compromise between the PCGG and Benedicto over the sale of the firm’s shares.