Villar Company Franchise Grant: Media Note Possible Conflict of Interest

Screengrab from Rappler.com.

CHEERS TO Rappler for pointing out a possible case of conflict of interest in the granting of a 25-year franchise to Streamtech Systems Technologies (SST), a venture of the group of companies owned by tycoon and former Senator Manuel Villar, to provide nationwide telecommunications services.

In its October 23 report, Rappler recalled the contents of Republic Act No. 11089, which President Rodrigo Duterte signed on October 18 and gave SST permission to engage in the telecommunications industry. After a brief backgrounder on SST, Rappler brought up the conflict of interest issue in the granting of the franchise, pointing that two Villars are in key government posts under the Duterte administration – Senator Cynthia Villar and Department of Public Works and Highways Sec. Mark Villar, who are the wife and son of the Villar patriarch.

It also recalled an earlier conflict of interest issue with Sec. Villar because of the nature of his family’s business interests, which Duterte shrugged off early in his presidency.

The report cited a provision in the 1987 Philippine Constitution which directs Cabinet members to “strictly avoid conflict of interest in the conduct of their office” (Article VII, Section 13). The same provision prohibits Cabinet members from participating in any business, directly or indirectly.

It also cited Article VI, Section 14 which prohibits a senator from being financially interested directly or indirectly in any contract, franchise or special privilege granted by the government during their term in office.

“Any franchise approval requires the greenlight from both houses of Congress before arriving at Duterte’s desk for his signature,” Rappler said about Sen. Villar’s role in the issue.

Although some media reports also noted the  ties of the Villars to government, only Rappler looked further into the possible issues arising from it in relation to SST’s venture into the telecommunications business, which coincided with government efforts to find a third telco player.