MANILA — The Securities and Exchange Commission (SEC) is reviewing the decision of foreign investors of Rappler Inc. to donate funds to the mass media entity’s Filipino managers to determine its next action before the Court of Appeals.
In a statement, the SEC said its decision to revoke the certificate of incorporation of Rappler is currently pending appeal before the Court of Appeals.
“(Thus,) any action on this supervening event must be coursed through the Honorable Court through an appropriate pleading or manifestation. To date, we are unaware of any such pleading or manifestation officially conveying this information to the Court of Appeals and for what specific relief,” it said.
Rappler’s foreign investor Omidyar Network reportedly was donating USD1.5-million investment to its 14 Filipino managers.
The SEC last month cancelled the certificate of incorporation of Rappler Inc. and Rappler Holdings Corporation allegedly for violating the Constitution and foreign equity restrictions in mass media.
The Commission decided that Rappler Inc. “sold control” to foreigners and Rappler Holdings being its alter ego, “existing for no other purpose than to effect a deceptive scheme to circumvent the Constitution.”
“In the meantime, the Commission is internally studying the development to determine its next action before the Court of Appeals and to ensure the fulfillment of its duty of enforcing the Constitutional restrictions on nationalized activities such as Mass Media,” added SEC. (PNA)
