Foreign entity Omidyar Network donates PDRs to Rappler managers to “address” SEC ruling

(Eagle News) – The foreign investor group Omidyar Network announced on Wednesday that it “has donated the Philippine Depository Receipts it held to 14 managers of Rappler Inc.,” led by its chief executive officer Maria Ressa.

This was to address what the US-based Omidyar claimed was an “unwarranted ruling made by the Philippines Securities and Exchange Commission (SEC) against Rappler, Inc., and Rappler Holdings Corporation.”

The Omidyar Network’s investments in Rappler are said to amount to $1.5 million.

The SEC has revoked Rappler’s certificates of incorporation for violating the constitutional ban on foreign ownership of local media organizations.

“The donation completely eliminates the sole basis of the SEC ruling against Rappler Inc. and Rappler Holdings Corporation. We therefore strongly believe that the companies should be allowed to continue operating unhindered in the Philippines,” the Omidyar statement read.

“Omidyar Network’s only objective has always been to enable the ongoing growth and success of these companies, and to support their dedicated journalists in providing independent, impartial, and credible news,” it added.

-“A generous act”-

The donation will go Rappler’s 14 managers who are all Filipinos, pointed out Omidyar.

Rappler’s chief executive officer Maria Ressa said she is welcoming and accepting the donation, describing it as a “generous act.”

“This generous act proves that Rappler is, as it has always been, Filipino-owned and -controlled,” she said.

Ressa and the 13 other Rappler managers who would receive the PDR donations were Rappler acting managing editor Chay Hofileña, managing editor Glenda Gloria (who is on sabbatical leave), news head Miriam Grace Go, Jennifer Chua, Marie Fel Dalafu, Stacy Lynne de Jesus, Lilibeth Frondoso, Dominic Gabriel Go, Natashya Gutierrez, Gemma Mendoza, Pauline Gel Occeñola, Libertad Pascual and Anne Louise Yosuico.

But Ressa stresses that their acceptance of the donation does not mean it is accepting that Rappler had committed any violation.

“We are not conceding that the SEC is right,” she said.

“We are up against the vast power of government and the SEC made the call and we challenged it at the Court of Appeals. We are not dissolving Rappler because we believe that we have always been 100-percent, Filipino-owned and the journalists control Rappler,” she added.

Omidyar Network, in its statement, claimed that its only objective in donating to Rappler was to “to enable the ongoing growth and success of these companies, and to support their dedicated journalists in providing independent, impartial, and credible news.”
“This action also reaffirms our intention that Rappler Inc. and Rappler Holding Corporation should continue to operate as fully independent, Filipino-owned and run companies, and highlights that Omidyar Network never had any control or influence over their management, operations, or editorial policy,” its statement claimed.

Omidyar claimed that the SEC ruling on Rappler was a “clear and direct attack not only on Rappler Inc. but also on independent journalism and press freedom in the Philippines.”

“Independent and investigative journalists, such as the highly committed team at Rappler Inc., should not have to put their jobs, freedom and safety at risk to provide impartial news coverage,” Omidyar Network’s statement said.

“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.

-“Fake news outlet,” says Palace- 

Malacanang has repeatedly said it will never hamper press freedom.

But press freedom does not give license to media organizations to violate the Constitution, it said.

The National Press Club also earlier issued a statement saying that the SEC decision revoking Rappler’s certificate of incorporation.

President Rodrigo Duterte and his officials had earlier hit Rappler for its “fake news” and even described the news site as a “fake news outlet.”