Palace advises Rappler to exhaust all legal remedies to counter SEC’s order revoking registration

January 15, 2018

Malacanang advised on Monday online news website Rappler to exhaust all legal remedies to counter the order of the Securities and Exchange Commission (SEC) revoking the media group's registration.

"Rappler may wish to exhaust all available legal remedies until the decision becomes final," said Presidential Spokesperson Harry Roque in a statement.

The SEC, in its decision in January 11 but which was uploaded at its website on January 15, said that Rappler, Inc. and Rappler Holdings Corp., a mass media entity and its alter ego, were liable for violating the constitutional and statutory foreign equity restriction in mass media.

It said that Rappler's funds come from Omidyar Network, a fund created by eBay founder and entrepreneur Pierre Omidyar.

Thus, SEC voided Omidyar Philippine Depository Receipts and revoked the certificate of incorporation of Rappler, Inc and Rappler Holdings Corporation.

The SEC said it has furnished the Department of Justice a copy of the decision "for appropriate action."  Rappler explained that PDRs do not indicate ownership.

Roque said the Palace respects SEC's decision, noting that Rappler allegedly contravenes strict requirements of the law that ownership and the management of mass media entities must be wholly-owned by Filipinos.

"The Securities and Exchange Commission is empowered to determine the legality of corporations," said Roque.

Solicitor General Jose Calida said the decision of the SEC “demonstrates that even influential media outfits cannot skirt the restrictions set forth in the Constitution.

“Rappler is free to seek redress before our courts. The OSG (Office of Solicitor General) is ready to defend the sound decision of the SEC in any forum,” Calida added. Celerina Monte/DMS