Palace belittles Rappler’s latest act of defense vs. SEC ruling

Malacanang on Wednesday branded as “a circumvention of the law” the assertion by Rappler’s foreign investor Omidyar Network that it is reportedly donating USD1.5 million investment to the online media outfit’s 14 Filipino managers. (Photo by Charles Salazar/Rappler)

MANILA — Malacanang on Wednesday branded as “a circumvention of the law” the assertion by Rappler’s foreign investor Omidyar Network that it is reportedly donating USD1.5 million investment to the online media outfit’s 14 Filipino managers.

“Omidyar Network’s reported donation of its Philippine Depository Receipts (PDRs) to its Filipino managers does not remove the fact Rappler breached the Constitution,” Presidential Spokesperson Harry Roque said in a press statement.

Contrary to Omidyar’s claim that the donation “completely eliminates the basis of the unwarranted” Securities and Exchange Commission (SEC) ruling, Roque said latest development is nothing but a circumvention of the law.

“This latest act is nothing but a circumvention of the law, which restricts ownership of media entities in the country to 100 percent Filipino-owned,” Roque explained.

Roque added that Rappler’s defense of infringement of press freedom “is merely a plot to distract from real issue.”

Last month, SEC has revoked Rappler’s certification of incorporation for violating constitutional restriction on foreign ownership of mass media.

“Let us therefore wait for the SEC, having jurisdiction, to address this new development,” Roque said.