Former RPN-9 exec sues network

A former official of the television network RPN-9 or Radio Philippines Network Inc. is suing the management of the network for entering into a P200-million "sweetheart deal" marketing contract with Solar Entertainment Inc.

In a petition filed with the Securities and Exchange Commission (SEC), former RPN-9 vice-president for news and public affairs Edwin L. Fargas, who is still a stockholder of the company, urged the corporate watchdog to issue a writ of preliminary injunction to prevent the TV network from implementing the marketing agreement with Solar.

Fargas is also seeking a total of P4.5 million in moral and exemplary damages and another P500,000 to cover litigation expenses. Fargas is holding liable current RPN-9 president and chief executive officer Edgar San Luis; board chairman Lino Barte and board directors Francis L. Cardona, Sylvia Fernandez, Socorro Alicia Quirino, Felix T. Turingan, Cielo C. Villaluna, Melita Jean Young and Francis Sevilla.

Fargas said that the management of RPN-9 acted in bad faith when not only did it deny finalizing the contract with Solar, but also when it refused to divulge the details of the sales and management contract it signed with Solar last December.

He said that management did not conduct a public bidding as required, but gave Solar preferential status by throwing in the contract, additional free airtime.

Fargas said RPN-9 management was evasive about his queries, and even denied such a deal was firmed up. This despite the confirmation of the closing of the deal by Solar officials William Tieng and Ruben Lim last month.

Fargas said he received confirmation from the two of the existence of a contract between RPN-9 and Solar, concerning the latter's appointment as the sole marketing arm of the former.