Palace: Ruling shows Rappler case not a press freedom issue

THE COURT of Appeals' (CA) move to uphold the Securities and Exchange Commission (SEC) ruling against online news firm Rappler was a testament that there was no infringement of press freedom on the part of the Duterte government, Malacañang said Friday, July 27.

"The decision of the Court of Appeals affirms that the Securities and Exchange Commission was correct to revoke Rappler's registration based on its previous investigation," Presidential Spokesperson Harry Roque Jr. said in a statement.

"The decision likewise supports the Palace stance that this case does not involve press freedom, but the regulatory powers of the SEC," he added.

Roque's statement came after a 72-page decision of the CA's Special 12th Division affirmed the earlier finding of the SEC that Rappler violated the constitutional requirement for the ownership and control of mass media entities.

The decision, penned by Associate Justice Rafael Antonio Santos and concurred in by Associate Justices Apolinario Bruselas Jr. and Germano Francisco Legaspi, found that the SEC observed due process in hearing the case of Rappler.

On January 11, the SEC revoked the Rappler's certifaction of corporation for allegedly violating the 1987 Constitution when it accepted more than $1 million worth of donations from Omidyar Network of eBay founder Pierre Omidyar.

Section 11(1), Article 16 of the 1987 Constitution states 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."

Omidyar admitted on February 28 that it donated its Philippine Depositary Receipts (PDRs) to Rappler's managers, but stressed that the media entity should continue "operating unhindered in the Philippines."

The CA, however, argued that "it does not matter whether the approval from Omidyar is required only when the actions taken by Rappler will prejudice the rights of Omidyar."

The appellate court emphasized that Rappler "will still nonethess be required to secure the approval of at least 2/3 of the PDR Holders before Rappler can carry out or implement any action, which has the effect of altering, modifying or otherwise changing Rappler's Articles of Incorporation or By-Laws."

"It bears stressing that the foreign equity restriction on mass media implies "zero" foreign control. It thus includes any appearance of contorl that will influence the corporate actions and decisions of Rappler," the CA's decision read.

"The actions taken by the SEC on petitiioners' alleged violation of the foreign equity restrictions by the Constitution for mass media entities clearly fall under its regulatory functions," it added.

The SEC's ruling had prompted President Rodrigo Duterte in February to bar Rappler and its reporter, Pia Ranada, from covering Palace events and entering the "whole of Malacañang complex."

The President had said he would only allow Rappler to regain its access to Palace, if it will be declared as a "legitimate" news media outfit.

Rappler earlier downplayed the SEC's decision as a "harassment" on the part of the Duterte government, in an effort to curtail the freedom of the press.

The CA stressed that the exercise of press freedom "is not an issue in this case."

"Rather, the issue involved the exercise fo the regulatory powers by the SEC over domestic corporations duly registered with it," it said.

The CA directed the SEC to carry out an evaluation on the legal implication of the alleged supervening donation made by Omidyar of all its PDRs to Rappler.

Roque expressed confidence that the country's corporate regulator with resolve Rappler's case with "competence and objectivity."

"We are confident that the SEC will be able to resolve the case with the same competence and objectivity as before," the Palace official said. (SunStar Philippines)