Business journalists denounce SEC decision against Rappler

The Economic Journalists Association of the Philippines (EJAP) denounced the recent decision of the Securities and Exchange Commission (SEC) to revoke the incorporation papers of Rappler Inc., labeling it as “a small step to a bigger, darker agenda.”

In a statement released on Tuesday, EJAP—an organization of business reporters, editors, and wire agencies in the country—decried the decision of the SEC, saying it has struck a blow on Philippine media.

“The decision of the Securities and Exchange Commission to strip media website Rappler of its corporate registration on ground that the Philippine Depositary Receipts ... it issued with SEC approval violated the constitutional prohibition on foreign ownership in mass media, we believe, is just a test case—a small step to a bigger, darker agenda,” the statement distributed to journalists on Tuesday read.

The SEC revoked the certificates of incorporation of Rappler Inc. and parent Rappler Holdings Corp. for supposedly violating the foreign ownership restrictions on mass media companies.

According to the SEC, Rappler welcomed Omidyar Network—which the media organization said is “the fund created by eBay founder and entrepreneur Pierre Omidyar and his wife Pam—as an investor in the online mass media outlet through Philippine depositary receipts (PDRs).

In its decision, the SEC argued that the PDRs issued to the Omidyar Network came with a controlling stake, which violated the foreign equity restriction of 100-percent Filipino control.

“Efforts to quiet the press are clothed in hair-splitting legalities, a smoke screen on this underhanded attack on the free press conceivably to temper public outcry,” EJAP claimed.

“January 15 will be remembered in Philippine press history in infamy. It is the day that a government built on democratic principles struck a blow on one of the pillars of Asia’s most vibrant democracy: A free press,” it said.

In the same statement, the EJAP expressed support for Rappler.

“The Economic Journalists Association of the Philippines, or EJAP, stands squarely behind Rappler in this fight. Every freedom-loving Filipino should stand up and be counted. We cannot let this pass,” it said.

In 2016, Facebook took down the official account of EJAP—a day after the association released a statement denouncing the pronouncements of President Rodrigo Duterte on media killings.

Facebook justified its action, saying EJAP violated the social network’s authenticity. The group has since converted its profile to an official page. —Jon Viktor Cabuenas/VDS, GMA News