(Eagle News) — The National Press Club said the Securities and Exchange Commission’s ruling revoking the certificate of incorporation of controversial online news site, Rappler, would not affect nor threaten the exercise of press freedom in the country.
“Responsible journalism means complying with the law,” read NPC’s statement issued by its president Paul Gutierrez.
The NPC, a professional and social organization of journalists in the Philippines founded in October 1952, said it believed that the “exercise of press freedom in particular, and the freedom of expression in general, have not been affected nor threatened” with the SEC’s finding that Rappler, Inc., violated the strict constitutional provision on 100 percent control and ownership of mass media and its decision to close down the media outfit.
“The NPC purposely delayed issuing its statement on the matter until it has read the entire decision of the SEC in order for it not to be swayed by the prevailing emotion of the moment,” the NPC statement said.
“As the country’s oldest and biggest organization of active media practitioners, the NPC is conscious that making a statement on this issue demands that it first study the SEC decision,” Gutierrez said.
“And going thru the 29-page decision, the SEC finding is quite clear: that Rappler Inc., has indeed violated the law when it allowed the entry of foreign investors and also allowed, specifically, Omidyar Network Fund LLC, to have control on ‘corporate matters’ of Rappler based on its own submissions to the SEC,” said NPC president Paul M. Gutierrez.
The SEC report, he added, clearly stated what was provided for in our Constitution and related laws and which Rappler also clearly violated:
“Where mass media is concerned, no (foreign) control whatsoever may be granted. 100 percent Filipino control means zero (“0”) foreign control. ‘Control’ is any influence over corporate policy, and not limited to ownership of stock.”
“As the SEC noted, Rappler breached this constitutional limit when it allowed Omidyar to exercise control over its corporate affairs as provided for in their internal agreement, in exchange for a fund infusion of US$ 1 million dollars,” Gutierrez noted.
“Responsible journalism also means complying with the law,” Gutierrez said.
He said that that the public and other media “cannot be swayed by the emotion of the moment and go along with the general sentiment that press freedom has been threatened less we be accused of inconsistency.”
The NPC also noted that it was premature to say that freedom of the press has been curtailed as a result of the SEC’s findings against Rappler.
“In the broader Philippine media industry, Rappler is just one among the thousands of media entities in the country and whose operations have remained free,” he said.
“There are about 436 television broadcast stations, 411 AM radio stations, over 1,000 FM radio stations and more than 400 newspapers today operating freely in the country besides those that now have proliferated in social media and whose actual number no one really has any idea.
“To say that the fate of one media entity found to have run afoul with the law translates to media repression in the country is stretching the argument a bit too much,” Gutierrez said.
-Other media groups’ contrary view-
The NPC’s position was different from that of the National Union of Journalists of the Philippines (NUJP) and the Foreign Correspondents’ Association of the Philippines which had almost immediately expressed support for Rappler after the SEC decision.
FOCAP claimed the SEC ruling sends a “chilling effect” on media.
Other media groups also echoed Rappler’s cry for press freedom.
-Nothing to do with press freedom-
But Malacanang stressed that this had nothing to do with press freedom.
Presidential Spokesperson Harry Roque Jr. in a Palace press briefing assured that Rappler reporters would not be prevented from exercising their duty as journalists in the light of the SEC decision.
“Truth is the reporter of Rappler is still in our press briefing. She is not being prevented from exercising her profession as a journalist. None of the individuals behind Rappler will be prevented from performing their duties as journalists,” he said.
The Spokesperson clarified that the SEC decision was based on its own findings that Rappler, Inc. and Rappler Holdings Corporation violated the constitutional provision of limiting the ownership of media entities to Filipinos.
Citing the SEC decision, Roque said the news organization issued Philippine Depository Receipts (PDR) in favor of foreign investors.
“You see here an instance where although they are not shareholders, nonetheless, the holders of the PDRs are given the same right to control the company in terms of amending the articles and bylaws,” he explained, adding that the move was a circumvention of the prohibition set by the Constitution.
