Sunday, June 16, 2019

KAPA barred permanently from receiving investments

THE cease-and-desist order (CDO) that barred the Kapa-Community Ministry International Inc. (KAPA) from soliciting and receiving investments has become permanent.

In a resolution dated March 14, the Securities and Exchange Commission (SEC) ruled with finality against KAPA and ordered that the CDO earlier issued to the company be made "permanent" and “under pain of contempt" after the latter failed to file a motion to lift the order within the prescribed period.

SEC-Northern Mindanao Director Renato Egypto said copies of the resolution were being distributed to local government units (LGUs) and law enforcement agencies such as the Philippine National Police and the National Bureau of Investigation (NBI).

The LGUs, police and NBI are tasked to implement the SEC order.

A committee hearing by the Cagayan de Oro City Council will be conducted Wednesday, March 20, on the SEC decision regarding KAPA.

SEC issued the CDO last February 14 following the numerous reports and complaints against KAPA, which is operating in some areas in Mindanao.

KAPA also operates as KAPA Kabus Padatuon (Enrich the Poor), KAPA/KAPPA (Kabus Padatuon), KAPA-Co Convenience Store and General Merchandise, and KAPA Worldwide Ministry.

Authorities found out that KAPA was not authorized to solicit investments because it does not have the secondary license to do so as provided under the Securities Regulation Code (SRC).

The order covers the partners, officers, directors, agents, representatives and all other persons acting for and in behalf of KAPA.

On February 21, the SEC served and posted the CDO at the last known address of KAPA in Bislig City, Surigao del Sur and at the residential addresses of incorporators Nonita Urbano and Junnie Apolinario.

The order was also posted at the registered principal office of KAPA and at the Bislig City Hall, according to SEC.

The commission said KAPA had five days from the receipt of the CDO to move for the lifting of the said order. No motion has been filed.

"Since it did not file any motion for the lifting of the CDO within five days from 21 February 2019, the CDO dated February 14 is hereby made permanent pursuant to Section 4-3 (c), Rule IV, Part II of the 2016 SEC Rules of Procedure," the Commission En Banc ruled.

The 2016 SEC Rules of Procedure provides that a CDO shall be deemed permanent if the respondent fails to file the appropriate pleading within the prescribed period.

The SEC also noted that the CDO against KAPA will remain effective and valid, notwithstanding an ongoing petition by the religious corporation for a preliminary injunction.

KAPA, represented by Apolinario, filed before the Regional Trial Court in General Santos City a petition for Injunction with Application for Issuance of a 72-hour Restraining Order, a Temporary Restraining Order (TRO) and/or a Writ of Preliminary Injunction.

Judge Joyce Kho Mirabueno junked the application for TRO in an order dated March 1.

The commission called on to public to be cautious in dealing with KAPA and to report to its head office or extension offices any continued investment-taking activity by KAPA and its allied entities.


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