THE UGLY TRUTH

By Atty. Arnedo S. Valera

Press freedom entails responsibilities

January 22, 2018, 12:54 pm

The more I listen to Rappler’s CEO Maria Ressa on the news involving her and her major foreign funder Omidya Network, the more I am convinced without any iota of doubt that they have violated in a conspiratorial way Article XVI Section 11(1) of the Philippine Constitution, which mandates that the control and management of mass media be limited to 100% ownership by Filipinos.

Freedom of the press is not an absolute right when it violates the Constitution, the fundamental law of the land, and the nation’s other laws, as well as existing regulations. No one and no entity is above the law.

To say otherwise is to invite anarchy.
Take the case of Newsweek, for example. On January 18, Newsweek, since 1933 one of the world’s oldest brands in the news business, is facing a major issue of its own. Newsweek was raided by Federal agents and local police in New York for allegedly violating taxes and business rules for co-hosting several businesses online and transactions for servers and yet paying only taxes and getting permit for only one.

Freedom of the press entails responsibilities, including in the conduct of business, such as paying taxes and following the rules and existing laws, because all citizens and businesses are guided by a basic principle in living in a democratic society: No one is above the law.

The SEC ruling on the cancellation of Rappler’s incorporation and the Newsweek raids are not about content-related issues, censorship and curtailment of press freedom. No one in Rappler, and Newsweek for that matter, has been arrested for expressing his or her personal views, legitimate or illegitimate dissent. And that is what President Duterte has been saying all along.

What Rappler’s Maria Ressa does not seem to realize is that as CEO, she is facing several legal issues concerning the legalities of Rappler’s corporate existence, which was legally and rightfully revoked by SEC for violating the Constitutional provision on 100% Filipino ownership and control of mass media and on proper business operations.

Simply put, If an ordinary food vendor on the streets, convenient or sarisari store owner, tricycle and pedicab drivers are required to obtain the right operations permit or business licenses with proper disclosure of ownership, that same rule applies toRappler and its creation, the Rappler Holdings, even without discussing in details the legal concept of “piercing of the corporate fiction” doctrine. For there seems to leave no room for doubt Rappler and Rappler Holdings are alter egos of each other. When you look closely at the people involved, including in the issuance of millions of PDRs to a foreign entity Omidya Network, common sense dictates that Rappler is circumventing the Philippine Constitution prohibiting foreign ownership and control of the Philippine Media.

Rappler’s solution is simple: Rectify your own glaring errors instead of crying out with your misplaced “Press Freedom@ sloganeering and consistently misleading the Filipino people and the world. Go back to the drawing table and do the right thing. Divest and remove all foreign control and ownership, voting or nonvoting shares, and just like any other businesses, follow the Constitution and rules regarding required fees, taxes and ownership.

Here are some of the points I suggest the Philippine Government should look into:

  1. Was the transfer of foreign funds or any grants, loans and other foreign finances to Rappler properly reported to the AMLC (Anti-Money Laundering Council)?
  2. When was the money of Omidya Network accepted? When were the PDRs “actually issued”? Did the horse come before the cart?
  3. There must be a determination of Maria Ressa's citizenship. Is she American, Indonesian and Filipino or a combination of any of these? If so, where her business activities reported to the U.S. and Indonesian governments?
  4. Rappler did contract work for outsourced websites during the political campaigns in so-called micro sites as part of its advertising. Was it involved in any other countries’ politics as Ebay Founder Pierre Omidya’s contributions for Ukranian political groups? For this would show how journalism is being funded by the likes of Omidya, bankrolling groups that recently toppled the government of the Ukranian President. This seems to invite the question: Is Rappler doing the same thing in the Philippines?
  5. Finally, the Philippine Government should look into possible criminal violations of Rappler, its CEO and other officers, including its foreign funders, regarding the Anti-Dummy laws, fraudulent transactions and violations of the Anti-Money Laundering Law.

Say Yes to press freedom – but No to violations of the Philippine Constitution and foreign intervention in the internal affairs of the country.

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About the Columnist

Image of Atty. Arnedo S. Valera

Arnedo S. Valera is a licensed New York and Philippine Attorney for more than 30 years. He has a Master’s Degree in International Affairs with International Law and Human Rights as areas of Specialization in Columbia University, NY. He has a Bachelor of Laws degree from Ateneo De Manila University.  Currently, he is the Executive Director of the Migrant Heritage Commission (MHC) and Chairperson of the US Pinoys for Real Change in the Philippines (USPRCP), Metropolitan Washington D.C.