Palace says it won’t stifle any protest action as Rappler rally draws less than 200 people

(Eagle News) — Malacanang said that it would not stifle protests on alleged trampling of press freedom as a “Black Friday” rally to protest the Securities and Exchange Commission’s ruling revoking a certificate of incorporation of online news website, Rappler, drew a crowd of journalists, including Rappler employees, bloggers and press freedom advocates.

“This evening’s Black Friday Protest for Freedom, organized by the National Union of Journalists of the Philippines, is a testament that freedom is alive and democracy is alive in the Philippines,” said Presidential Spokesperson Harry Roque on Friday, January 19.

“The Palace position on the matter remains clear and consistent: We allow public displays of constructive criticism as part of full exercise of the protesters’ rights to express their grievances,”

Roque added “Authorities, as a matter of standard operating procedure, will observe maximum tolerance and respect the protesters’ right to peaceful assembly.”

Maria Ressa (C-with microphone), the CEO and editor of online portal Rappler, speaks during a protest on press freedom along with fellow journalists in Manila on January 19, 2018. / AFP PHOTO / TED ALJIBE

The so-called “Black Friday” drew a crowd of less than 200 people, including Rappler employees led by its CEO Maria Ressa, and other bloggers, journalists and press freedom advocates.

The protesters carried banners saying “fight the Duterte dictatorship” and “defend press freedom”.

Staff of online portal Rappler along with fellow journalists and supporters display placards during a protest in favour of the freedom of press in Manila on January 19, 2018.
/ AFP PHOTO / TED ALJIBE

A facebook photo by Veegeeboy Cabugao of a wide-angle shot taken from a high vantage point of the “Black Friday” protest rally at the Boy Scout Circle in Quezon City asked where the “massive crowd” which organizers had hoped for was.

An Agence France Presse report says the number of journalists and activists who attended the rally was “about 200”.

The government’s corporate regulator alleged that Rappler violated a constitutional ban on foreign ownership of local media when its parent company issued Philippine depositary receipts for Rappler shares that were sold to a foreign funder.

Rappler maintains the investment did not constitute equity nor give the investors veto on editorial matters and has vowed to fight Monday’s ruling, which takes effect after 15 days.

-SEC chair says Rappler CEO’s accusations “unfair” –

But SEC chair Teresita Herbosa, an appointee of former President Benigno Aquino III, dared Rappler to prove its allegation that the SEC ruling was a violation of press freedom.

She called Rappler CEO Maria Ressa’s statements against the SEC as “unfair”.

“You know, if they have proof that that’s the case, they better present it. It’s so unfair to us. We’re only doing our job and you know, without fear or favor, we just come out with whatever the law would require us to do,” SEC chair Herbosa told reporters in an interview.

-Herbosa hints at Rappler’s agenda-

Herbosa, who also chair’s the country’s Anti-Money Laundering Council (AMLC) also accused Rappler of trying to divert the people’s attention from the real issue – its violation of the Constitution and other Philippine laws, and said Rappler could have its own “agenda” in doing this.

“Whoever didn’t get what they wanted from us, maybe they wanted us to say the PDRs were legal, then maybe they have their own agenda,” Herbosa told reporters.

“They have to resort to things like that in order to divert people’s attention to what is the real issue,” she said commenting on Rappler’s much publicized claim that the SEC decision was a “blow to press freedom.”

-Violations of Philippine laws, Constitution cited-

The SEC cited the Foreign Equity Restriction enshrined in the Philippine Constitution that bars any form of ownership or control by foreign entities of Philippine mass media.

“The Foreign Restriction is very clear. Anything less than one hundred percent (100%) Filipino control is a violation. Conversely, anything more than exactly Zero Percent (0%) foreign control is a violation,” the SEC decision read.

The Foreign Equity Restriction is found in Article XVI Section 11(1) of the Constitution which provided that: “The ownership and management of mass media shall be limited to citizens of the Philippines, or to corporations, cooperatives or associations, wholly-owned and managed by such citizens.”

The SEC also cited Section 2 of the Presidential Decree 1018, Limiting the Ownership and Management of Mass Media to Citizens of the Philippines.

In its investigation, the SEC found that Rappler and its holdings company, Rappler Holdings Corporation, issued Philippine Depository Receipts (PDR) to the foreign entities North Base Media (NBM) thru NBM Rappler, LP, and Omidyar Network.

The investigation showed a certificate of Registration of Expanded Limited Partnership, issued in the Cayman Islands to NBM Rappler, L.P.

The SEC investigation also found a certification of partnership interest issued in the Cayman Islands to NBM Rappler, LP, as well as a Certificate of Formation issued in Wilmington. Delaware, USA to Omidyar Network Fund LLC.

In 2015, Rappler Holdings Corporation issued 264,601 PDRs to NBM Rappler, LP on May 29, 2015; another 11,767,117 PDRs to NBM Rappler, LP on July 29, 2015; and more than 7 million PDRs (7,217,257 PDRs) to Omidyar Network Fund LLC.

SEC said Rappler also violated Section 1 of the Commonwealth ACT 108, or the Anti-Dummy Act, which penalizes any citizen of the Philippines who allows his name or citizenship to be used for the purpose of evading constitutional or legal provisions which require Philippine or any other specific citizenship as a requisite for the enjoyment of a right, franchise or privilege.

“This may include a situation where a person allows disqualified foreigners to obtain a derivative that grants a measure of control over corporate matters, especially where the Constitution is very clear that there must be no foreign control whatsoever,” the SEC noted in its ruling.

“Anything less than one hundred percent (100%) Filipino control, as stockholder or through any other means, is a violation,” it explained.

It accused Rappler of committing what may be considered “a species of Securities Fraud” when it circumvented the foreign equity restrictions enshrined in the Constitution through a sale of securities to foreign entities, the Omidyar Network and North Base Media.

(with an Agence France Presse report)

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