The Securities and Exchange Commission (SEC) is standing by its January 2018 decision revoking the certificates of incorporation of Rappler.
However, the lawyer for the Rappler said Omidyar’s donation to Rappler of the questionable Philippine Depositary Receipts (PDR) has no legal effect on the case.
“Unfortunately, the SEC submitted a report to the Court of Appeals saying it [donation] has no effect without giving us the opportunity to comment on the effect,” said Rappler legal counsel Francis Lim during a press con on Monday. “We made a very strong case there, and unfortunately the SEC panel did not ask for our view before submitting its report to the Court of Appeals.”
To recall, the embattled media organization filed a motion for reconsideration before the SEC on commission’s January 11, 2018 decision that revoked Rappler’s license to do business for allegedly engaging in a fraudulent transaction and circumventing constitutional restrictions on foreign ownership.
Rappler then elevated the case to the Court of Appeals that ruled that Rappler is not 100-percent Filipino owned, thus upholding the section of the SEC.
Rappler has claimed the PDRs do not give Omidyar ownership rights and that the PDRs do not affect its editorial operations.
The embattled media organization is led by Maria Ressa who was recently award the 2021 Nobel Peace Prize award.