SEC: Rappler may continue to operate, appeal decision

The Securities and Exchange Commission (SEC) yesterday said that Rappler may still continue with its operations pending the filing of an appeal in court.

“The commission en banc decision has not become final and executory. The respondent, Rappler (Holdings) Corp., can still go to the Court of Appeals within 15 days to challenge the decision of the SEC. Meantime, it can go on, business as usual,” SEC spokesperson Armand Pan said in a television interview.

As this developed, President Rodrigo Duterte said there was nothing political in the SEC ruling.

He denied that he had wielded his power to sway the SEC into revoking Rappler’s certificate of incorporation.

“We never had a hand and I don’t give a s*** if you continue or not continue with your network,” the President said in an event held in Pasay City as he tried to get the attention of Rappler reporter Pia Rañada, who also graced the event.

He also slammed Rappler for crying foul over the alleged “harassment,” which he said did not exist.

“Remember, the composition of SEC is Aquino [appointees]. There are about five, I only appointed one. So how could it be po- litical?” Duterte said.

“I don’t care about it (SEC’s ruling). You have been throwing trash and shit all around but I just let you do that. No one makes a move. But then, someone discovered [something against you], that’s the problem. But after the discovery, you’ll say that’s harassment?” he added.

The SEC revoked Rappler’s license to operate saying that the company violated the constitutionally mandated foreign equity restriction in mass media.

It said Rappler sold to Omidyar Network Philippine Depositary Receipts (PDRs), a financial instrument that provides Omidyar the right to the delivery of dividends from Rappler shares.

Pan said they have found that Rappler “must have prior approval (from Omidyar) when it comes to changing the articles of incorporation or bylaws of the company.”

“That means that Rappler cannot even change the principal office address, the date of meetings--those are operational policies of the corporation, which means the PDR holders exercise right of ownership,” he said.

“The mere giving of right to participate in these management acts is enough. They need not be exercised. It’s there in the PDR itself,” he added.