SEC chair ready to defend ruling on Rappler case

MANILA, Philippines—Securities and Exchange Commission Chairperson Teresita Herbosa on Tuesday said she is ready to defend a ruling to revoke the business registration of online news site Rappler over issues on foreign ownership.

Herbosa, who was appointed by President Benigno Aquino III in 2011, declined a television interview to discuss the ruling but stood by it.

"Having issued the decision after much deliberation and pursuant to law and due process, I will certainly defend it to the hilt,” Herbosa was quoted in a statement read by ANC.

“Having just issued it, I would look like I want attention or am trying to influence the appeal outcome if I talk about it on nationwide TV,” Herbosa, a corporate lawyer before joining the SEC, added.

On Monday, SEC released to the media a ruling ordering the closure of Rappler over questions on foreign ownership.

READ: SEC revokes news site Rappler's registration

SEC ruled to revoke the certificate of incorporation of Rappler Inc. and its supposed “alter ego,” Rappler Holdings Inc. and declared Omidyar Philippine Depositary Receipts as void.

Rappler allegedly “acted with deceit in a scheme to justify the grant of control and also financial returns, to foreign investors when they sold the Omidyar Network Philippine Depositary Receipts.” The he law states that the ownership and the management of mass media entities must be wholly owned by Filipinos.

The ruling was signed by SEC chair Herbosa and concurred by Commissioners Antonieta Ibe Ephyro Luis Amatong, Emilio Aquino. Commissioner Blas James Viterbo did not sign the ruling.

Rappler allegedly “acted with deceit in a scheme to justify the grant of control and also financial returns, to foreign investors when they sold the Omidyar Network Philippine Depositary Receipts.” The he law states that the ownership and the management of mass media entities must be wholly owned by Filipinos.

The online media outfit denied the allegations and said it would pursue legal remedies to reverse the ruling.

Rappler officers noted how the resolution media outfit’s case was swift compared to others. The pointed out that President Rodrigo Duterte accused them of being owned by foreigners in his July 2017 State of the Nation Address.

Palace defends Duterte, Herbosa

On Tuesday, Presidential Spokesperson Harry Roque defended Duterte and said the president  was not aware of the SEC’s decision and had nothing to do with it.

He also defended Herbosa against criticism of being Duterte’s lackey.

Roque said SEC is one of the “most looked upon” and “most efficient” agencies.

“Herbosa is renowned to be consistent with  her stand against corruption,” Roque said in a Palace press briefing.

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