Omidyar donates PDRs to Rappler

FILE: Investment firm Omidyar Network on Wednesday donated its Philippine Depositary Receipts (PDRs) to the managers of the online news outfit Rappler. (Photo: Rappler.com)

Believing that companies should continue to operate unhindered in the country, investment firm Omidyar Network on Wednesday donated its Philippine Depositary Receipts (PDRs) to the managers of the online news outfit Rappler.

“This donation completely eliminates the sole basis of the SEC ruling against Rappler Incorporated and Rappler Holdings Corporation.

We therefore strongly believe that the companies should be allowed to continue operating unhindered in the Philippines,” Omidyar partner Stephen King was quoted saying in a Rappler report.

A PDR is a financial tool where individuals or entities can invest in a company without owning any part of it or be included in day-to-day operations.

According to the report, Omidyar donated PDRs “to address the unwarranted ruling” by the Philippine Securities and Exchange Commission (SEC) to revoke Rappler’s license to operate.

In January, SEC revoked the registration of the news entity for allegedly violating the Constitution and the Anti-Dummy Law. The SEC stressed that Rappler violated constitutional restrictions on ownership and control of mass media entities due to funds coming from Omidyar.

The investment firm, however, defended that the ruling is a “clear attack and direct attack not only to Rappler Incorporated but also on independent journalism and press freedom in the Philippines.”

“We believe that independent and investigative journalists, such as the highly committed team at Rappler, should not have to put their jobs, freedom, and safety at risk to provide impartial news coverage. We must support and protect these courageous journalists around the world, otherwise the press will lose objectivity, trust, and the ability to hold those in power to account,” it added.

Meanwhile, Rappler expressed its gratitude to Omidyar for the donation.

“Between then and now, independent media in the Philippines, including Rappler, has come under attack. We therefore welcome Omidyar Network’s decision to donate its investment to Filipino Rappler managers,” Rappler CEO Maria Ressa said.

Rappler added that this generous act shows that the news outfit is “as it has always been, Filipino-owned and -controlled.”