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Proposed rules and regulations on crowdfunding

Crowdfunding (CF) platforms have proven to be a popular way to solicit charitable donations and to raise funds for projects or business ventures. With CF platforms, access to funds has expanded for start-up companies and for micro, small, and medium enterprises (MSMEs).

CF generally refers to the financing method of pooling small amounts of money from a large number of people to finance charitable causes, campaigns, projects, or business ventures.

In line with this developing financial innovation, the SEC proposes to regulate CF activities in the Philippines and released its proposed rules and regulations governing CF (Rules) for public feedback. The proposal to regulate CF activities in the Philippines is consistent with the direction taken by other countries, such as the United States, Canada, and Singapore, which have already established regulations on CF transactions.

The rules attempt to strike a balance between the dual responsibilities of the SEC to encourage capital formation and to protect investor interests.

To encourage capital formation and in view of the limited character of the public offering through CF, the rules grant exemption for securities sold or offered through CF from the registration requirement under Section 12 of the Securities Regulation Code (SRC).

On the other hand, to protect investor interests, the SEC incorporated disclosure requirements, registration requirements for intermediaries and funding portals, regulatory framework for intermediaries, and post registration requirements for issuers and intermediaries in the Rules, among others.

DISCLOSURE REQUIREMENTS
Those looking to raise funds (Issuer) will be required to disclose, among others, the nature of its business, financial condition, historical reports of operations, the business plan with respect to the CF offering, the risk factors of investing in its projects, the procedure on how to return funds if the target offering is not met, and the procedure to complete or cancel investment commitment.

REGISTRATION REQUIREMENTS
Entities which facilitate transactions involving the offer or sale of CF securities through online electronic platforms will be required to register as a Funding Portal.

An applicant Funding Portal, which should be registered with the SEC as a corporation and must have at least P50,000 equity, must submit: (i) Registration Statement with information on the principal place of business, legal status and disciplinary history, business activities and types of compensation received by the funding portal, and Web site address/es; (ii) account opening and disclosure rules; and (iii) business conduct rules.

Entities which mediate in the offer or sale of CF securities will be required to file an application with the SEC and to register as Intermediary.

Only securities brokers registered Section 28 of the SRC, investment houses as defined under the Investment Houses Law, and funding portals registered in accordance with Section 30 of the Rules, are eligible to file an application with the SEC and engage as Intermediary in CF transactions.

To register as Intermediary, eligible entities must signify their intention to conduct activities of CF Intermediary and must be able satisfy the criteria set under the Rules.

REGULATORY FRAMEWORK FOR INTERMEDIARIES
Under the Rules, Intermediaries will be required to: (i) Provide investors educational materials; (ii) Take measures to reduce the risk of fraud; (iii) Provide communication channels to permit discussions about offerings on the platform; (iv) Comply with maintenance and transmission of funds requirements; and (v) Comply with completion, cancellation and reconfirmation of offerings requirements.

ONGOING REPORTING REQUIREMENTS
Issuers will be required to periodically file with the Commission an annual report on all its CF transactions, the relevant CF Forms within five (5) business days: (i) after the Issuer reaches 50% and 100% of the target offering amount; (ii) after the Issuer accepts proceeds in excess of the target offering amount; and (iii) after the offering deadline, a disclosure on the total amount of securities sold in the offering.

Intermediaries will be required to keep and maintain records related to CF transactions, which include information related to investors and issuers, records of all communications that occur on or through its platforms, and all daily, monthly and quarterly summaries of transactions effected through the funding portal.

BURDENSOME AND HIGH COST OF COMPLIANCE
As opposed to traditional, exempt, private placement transactions which require one-time submission of Form 10.1 (Notice/Confirmation of Exemption) with the SEC, Issuers in CF offerings would have to continuously comply with the Ongoing Reporting Requirement and incur costs for the same.

Considering the heavier regulatory burdens and higher compliance costs, in conjunction with the P10,000,000 cap on the amount that can be raised through CF, the rules may create an unintended consequence of disincentivizing companies from using CF.

Understandably, the SEC has placed the foregoing requirements to protect the interest of the ordinary investors. However, the rules may have to be revisited to achieve the original intention of providing simple and alternative financing access to start-up companies, without sacrificing the interest of the investing public.

The views and opinions expressed in this article are those of the author. This article is for general informational and educational purposes, and not offered as, and does not constitute, legal advice or legal opinion.

 

Leia Clarissa Veronica R. Veracruz is an Associate of the Corporate and Special Projects Department of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW).

crveracruz@accralaw.com

(632) 830-8000.

Fresh art at the Fringe

ART NEED not be staid — it can be a comedy show with funny Japanese men, a live painting battle between visual masters, or a painting “battle.”

An advocate of fresh art, Fringe Manila puts art front and center to showcase what’s hip and happening in the arts scene of the Philippines and around the world. It showcases fresh, fun, bold, and disruptive works by emerging and established artists in art genres like theater, music, dance, visual art, film, cabaret, performance art, burlesque, spoken word, comedy, magic, and workshops. For its fourth edition, Fringe Manila returns on Feb. 7 to 25 at different venues around Metro Manila.

“Fringe’s mission is to make art accessible to audiences here in Manila who want to engage with the arts through fresh lenses and experience works that resonate with them,” said Andrei Nikolai Pamintuan, Fringe Manila’s founding board member and festival director.

“We built this festival as an inclusive platform for artists here in the Philippines, Fil-X artists (i.e. Filipino-Canadian, Filipino-American, Filipino-European, etc), and international creatives to present original works that celebrate the diversity of talent that converge in the metro.”

The festival welcomes newcomers to the celebration including GUMBO, an award-winning theater group from Japan whose show, Are You Lovin’ It?, is a surreal comedic romp with dancing Japanese businessman, crazy cartoon mascots, and fast food satire.

Then there is PUP Maharlika’s Karera. Inspired by the urban rat race, Karera is dance-theater production on the survival of the fittest in the urban jungle. It is choreographed by Daloy Dance Company’s Buboy Raquitico.

To be screened during the Fringe fest is an unfinished documentary called Nobenta Nostalgia by Eljay Castro Deldoc, which revolves around 1990s television, told through interviews, monologues, and songs.

This year, the festival brings back crowd favorites such as Deus Sex Machina, SPIT, ADHD Productions, Burlesque PH, and Airdance.

Fringe Manila will also stage the championship round of a live painting competition called Art Battle, where painters compete for votes from the audience for the chance to compete in the Art Battle International.

Meanwhile, there will be performances by Kulintronica, a California-based musician who fuses the sounds of the traditional kulintang with modern electronic music, and Pagbalik, another California-based act performing a sound and dance narrative that reflects what it means to be a Filipino-American.

There will also be a number of workshops during the festival.

“It’s so important for these types of festivals to exist. By bridging independent creatives with small businesses and working with cultural institutions, Fringe works closely with its communities to make the arts a vehicle for meaningful collaborations, and a safe space for ideas and expanding networks,” said Jodinand Aguillon, the festival’s creative producer and a Fringe artist himself.

Since it started in 2015, Fringe Manila — which is under the umbrella of the internationally acclaimed World Fringe Network — has welcomed 30,000 audience members in 45 venues while featuring more than 500 performances and exhibitions by more than 1,000 artists.

Tickets to some Finge performances are available at TicketWorld (891-9999, www.ticketworld.com.ph). For more details and updates, visit facebook.com/FringeMNL or follow them on Twitter and Instagram at @fringemnl or visit fringemanila.com. — NFP de Guzman

Mazda models top US fuel ratings

ITS SkyActiv technology allowed the brand to lead the list of the most fuel-efficient vehicles in the US for the fifth-straight year, Mazda said in a news release. The car maker cited data from the 2017 Light-Duty Automotive Technology, Carbon Dioxide Emissions, and Fuel Economy Trends report by the United States Environmental Protection Agency (EPA) as the source of the information.

It added that according to latest edition of the annual report, Mazda had the highest adjusted fuel economy performance rating among the 13 brands listed in the review. The average manufacturer adjusted fuel economy of Mazda models sold in the US during the 2016 model year was 12.58 kilometers per liter for combined city and highway driving cycle. Mazda said the EPA test also showed it recorded the lowest average CO2 emissions among car makers at 187 grams per kilometer.

Mazda credited its SkyActiv Technology’s range of lightweight engines, transmissions, chassis and car bodies as a key factor to the company’s leadership in the EPA list.

“Mazda has always stood for maximizing performance through efficiency,” said Steven Tan, president and CEO of Bermaz Auto Philippines, Mazda’s local distributor.

SMC gets top credit rating for P30-B fixed-rate bonds

DIVERSIFIED conglomerate San Miguel Corp. (SMC) secured the highest credit rating for its planned P30-billion fixed-rate bond issuance, a local debt watcher said. 

In a statement released Tuesday, the Philippine Rating Services Corp. (PhilRatings) said it has assigned a PRS Aaa issue rating for SMC’s proposed bond offering. This represents the highest rating in the debt watcher’s credit rating scale, indicating the company’s ability to meet its financial obligations.

PhilRatings also gave the bond issuance a stable outlook, which means that the credit rating is unlikely to change in the next 12 months.

The P30-billion fixed-rate bonds is the third tranche of SMC’s three-year debt securities program of up to P60 billion. The first tranche worth P20 billion was listed at the Philippine Dealing and Exchange Corp. on March 1, 2017, which consisted of P6.68-billion bonds due 2022 at 4.8243% per annum, P7.29 billion due 2024 at 5.2840%, and P6.022 billion due 2027 at 5.613%.

The second tranche of the debt securities program, meanwhile, was launched on April 7, 2017, where SMC raised P10 billion from the sale of five-year bonds at 5.1923% per annum.

The bond issuances are among SMC’s refinancing activities in an effort to temper the company’s foreign exchange losses, as the Philippine peso is expected to continue its depreciation. On Tuesday, the local currency depreciated by 23.5 centavos to close at P51.420 against the dollar.

PhilRatings considered SMC’s operating businesses, income streams, and cash flows in coming up with the credit rating. The company booked a net income of P20.9 billion in the first nine months of 2017, following a 20% increase in revenues to P597 billion during the period. 

The debt watcher said SMC’s financials are expected to further improve with the completion of projects in the energy and infrastructure sector.

PhilRatings also noted the strength of SMC’s core businesses in food and beverage, fuel and oil, and infrastructure. The company’s subsidiaries also include investments in energy and packaging. 

“SMC and its subsidiaries’ strong market position, its solid track record and continuous efforts to manage its debt position, backed by growing market demand and supported by a robust domestic economy, makes SMC well prepared for significant future growth,” according to PhilRatings.

Established originally as a single brewery in the Philippines in 1890, SMC now has over 100 production facilities in the Asia-Pacific region, employing more than 23,000 employees. Amid its diversified product offerings, SMC President and Chief Operating Officer Ramon S. Ang last year announced his intention to enter the electronics business in the future.

Shares in SMC rose 90 centavos or 0.63% to close at P144.90 each at the Philippine Stock Exchange on Tuesday. — Arra B. Francia

Warning level raised on another Japanese volcano

TOKYO — Japan raised the warning level on another volcano on Tuesday, exactly a week after a dramatic eruption at another peak killed one man, injured nearly a dozen others and stranded scores of skiers — including foreign tourists — for several hours.

Japan’s Meteorological Agency lifted the warning on Zao, a cluster of volcanoes in northern Japan whose highest point is 1,841 meters (6,040 feet), to 2 from 1, meaning that people should avoid going near the crater.

“There is a possibility of a small-scale eruption,” the agency said in a statement, noting that a number of small earth movements were detected on Tuesday, along with a slight bulging of the ground in one area.

It also warned of the possibility that volcanic rocks could be thrown as far as 1.2 kilometer in any eruption.

The announcement came a week after a member of Japan’s military was struck and killed when rocks from the sudden eruption of the Kusatsu-Shirane volcano rained down on skiers at a mountain resort in central Japan.

Video footage taken by skiers on the mountain, including some from Taiwan, showed black ash boiling up into the sky as stones plummeted down, some punching holes in the metal roof of a ski gondola. Eleven people were injured and around 100 skiers took refuge in a mountain hut for several hours until rescued.

Zao, like Kusatsu-Shirane, is a popular resort area famed for its “snow monsters,” created by water vapor freezing on trees in winter. Its slopes are packed with skiers in winter and hikers in other seasons.

Japan has 110 active volcanoes and monitors 47 of them around the clock. In September 2014, 63 people were killed on Mount Ontake, the worst volcanic disaster in Japan for nearly 90 years. — Reuters

Colossus of Egyptian King Ramses moved to new home, carefully

CAIRO — Egypt moved an 83-ton, 3,200-year-old statue of King Ramses II to the atrium of Cairo’s new Grand Egyptian Museum last Thursday in a complex operation undertaken by army engineers and specialist contractors.

The ancient colossus was taken on its 400-meter journey inside a cage mounted on a truck and suspended like a pendulum from a steel beam to help offset any jolts from the ground during transport.

The road surfaces were treated with special materials to ensure they could adequately bear Ramses’s huge weight. The transfer operation cost 13.6 million Egyptian pounds ($770,000).

Speaking at a ceremony to mark the move, former antiquities minister Zahi Hawass underlined the importance of the museum project to Egypt’s tourism sector, which has been damaged in recent years by political violence.

“It will tell people that Egypt is safe and you can come and visit us because we need the tourism for the preservation of the Egyptian antiquities.”

At its new location the statue will be the first thing visitors see as they enter the museum, part of which will open later this year ahead of its expected official launch in 2022.

The colossus was unearthed at the Mit Rahina archaeological site in 1820 by the Italian adventurer Giovanni Caviglia. Thursday’s move was the fourth it has seen over its several millennia of existence.

It was first moved from the quarry where it was made to Mit Rahina before being shifted in 1955 to Ramses Square in Cairo. Increasing pollution and congestion at the square prompted its next move in 2006 to safekeeping in a storage area where it was kept of public view until now.

Egypt’s tourism sector is one of the country’s main sources of foreign currency but it has struggled since a 2011 uprising that led to years of violent instability including a spate of Islamist militant attacks.

The sector saw an improvement in 2017, with revenues jumping 123.5% year on year to $7.6 billion and the number of tourists visiting rising 54% to 8.3 million.

The number of visitors in 2017, however, was still well below the 14.7 million who came in 2010 before the uprising. — Reuters

Chamber cites DTI restrictions on gov’t projects

THE European Chamber of Commerce of the Philippines (ECCP) said foreign contractors remain barred from government projects by guidelines set by the Department of Trade and Industry (DTI).

The chamber said the Philippine Construction Accreditation Board (PCAB) on the other hand licenses foreign contractors to participate in privately funded projects.

The issue was raised before the House committee on economic affairs, which tackled foreign participation in the construction industry.

PCAB Executive Director Herbert D.G. Matienzo said foreign companies that hold a Quadruple A license are allowed to bid in public-private partnerships (PPPs), build-operate-transfer (BOT) projects, and international competitive bidding (ICB) projects provided that they have P1 billion in equity and invest P3 billion for vertical projects and P5 billion for horizontal projects.

However, ECCP’s advocacy manager Kareen Enriquez said: “A reading of DTI guidelines would reveal that foreign entities with a Quadruple A license are only allowed to undertake private and not government-funded projects. So even with P1 billion capital equity, we are still not allowed under DTI guidelines.”

Guenter Taus, president of the ECCP, added that the case is not that “simple.”

“If you look at the markets, and you say it yourself, there’s no restriction — again, there are restrictions because (licensing) is just for one project. So you would have for each contract to apply for (a new license). Some companies have been doing that for years and again, it does not mean that you open up the industry to foreign players with certain restrictions,” Mr. Taus said. — Minde Nyl R. dela Cruz

All-Star Game tweak

As a long-time fan of the National Basketball Association (NBA), the mid-season classic All-Star Game has always been a highlight of every NBA year for me.

While admittedly there were editions that rendered themselves as lopsided, still the thrill of seeing 24 of the best players in the world on the same court was not lost on me and took delight from them nonetheless.

This year, the Association had decided to make a tweak on how the All-Star Game (ASG) will be presented.

It had done away with the traditional East versus West format and instead will have two teams composed of players regardless of the conference they play in and selected, playground-style, by the top two vote-getters from the NBA’s two conferences.

The reason primarily for the change in format, league officials said, is to make the game more exciting and competitive.

To be honest, initially I did not really see the need for the tweak, because, as I said at the top, I am into the ASG regardless. It is the best from the East against those from the West, and I am fine with it.

But having the chance to follow how the NBA came up with the roster for the All-Star Game and how the selection panned out, I am going to say it made me excited more than I expected and actually is looking forward to it all the more.

As things stand, the teams have been divided between Team LeBron James and Team Stephen Curry, the players who got the most votes from both conferences.

The two captains selected their players last Friday with very interesting mixes. It is just unfortunate that the process was not televised for one could only imagine the dynamics and “drama” that went in the selection — something we fans could have gotten a kick from.

When the selection smoke cleared, Team LeBron wound up with Kevin Durant (Golden State), Anthony Davis and DeMarcus Cousins (New Orleans) and Kyrie Irving (Boston) as the starters with Russell Westbrook (Oklahoma City), John Wall and Bradley Beal (Washington), Kristaps Porzingis (New York), Victor Oladipo (Indiana), LaMarcus Aldridge (San Antonio) and Kevin Love (Cleveland) coming off the bench.

The team will be coached by Toronto’s Dwane Casey. Because of the season-ending Achilles injury he suffered recently, Cousins will miss the All-Star Game and has since been replaced by Paul George of the Oklahoma City Thunder.

Team Stephen, meanwhile, has as part of the starters James Harden (Houston), DeMar DeRozan (Toronto), Giannis Antetokounmpo (Milwaukee) and Joel Embiid (Philadelphia). Reserves are Klay Thompson and Draymond Green (Golden State), Kyle Lowry (Toronto), Al Horford (Boston), Damian Lillard (Portland) and Jimmy Butler and Karl-Anthony Towns (Minnesota).

Its coach is Mike D’Antoni of the Houston Rockets.

On paper, it is easy to side with Team LeBron for it is loaded as loaded can get. James said he wanted a team that is competitive and I think he got it and more.

At every position it has it covered and can be a handful.

On the other end, Team Stephen maybe surrendering some talent here and there but mind you in a team setting and play it could have the advantage.

Made up mostly of teammates in their mother teams and players who have no trouble “complementing,” the team may render itself more fluid come game time.

With what is at hand in the All-Star Game on Feb. 19 (Manila time), an exciting and competitive match between the protagonists should be expected.

Aimed at attracting fans and stoking their interest, the latest NBA All-Star Game tweak does give a fresh dimension to it all, and count me in as among those watching it.

 

Michael Angelo S. Murillo has been a columnist since 2003. He is a BusinessWorld reporter covering the Sports beat.

msmurillo@www.bworldonline.com

Mitsubishi starts accepting orders for new Xpander MPV

MITSUBISHI Motors Philippines Corp. (MMPC) announced it has started accepting reservations for the new Mitsubishi Xpander MPV, a model that made its global debut in Jakarta, Indonesia, in August 2017. The Xpander, built at a new Mitsubishi factory in West Java, Indonesia, has since turned into a “game-changer” in that country, according to MMPC.

The company said it would be taking reservations until the end of April this year, indicating the new model will arrive in showrooms starting in May.

Four variants of the Xpander will be introduced: GLX M/T, GLX Plus A/T, GLS A/T and GLS Sport A/T. Prices are set — MMPC referred to these as “indicative” — at P900,000 for GLX M/T; P990,000 GLX Plus A/T; P1.050 million for the GLS A/T; and P1.1 million for GLS Sport A/T. Colors available are Red Metallic, Titanium Gray Metallic, Sterling Silver Metallic, Quartz White Pearl and Diamond Black Mica, depending on which variant is chosen.

MMPC said the Philippines is the second country to get the Xpander, which is also expected to land in Thailand, Vietnam, Sri Lanka, Bolivia and Egypt. In a presentation held on the sidelines of the Tokyo Motor Show in October 2017, Mitsubishi Motors Corp. officials said total annual production of the Xpander for 2018 is pegged at 80,000 units, with Indonesia accounting for around 70% of the output. Forecast to take the next sizable chunk of deliveries is the Philippines, with an estimated 20% share. Thailand is seen as the Xpander’s third-biggest destination.

Mitsubishi Xpander 2
Mitsubishi offered the Xpander for test-drives at its proving ground in Nagoya during the sidelines of the 2017 Tokyo Motor Show. — BRIAN M. AFUANG

During the same presentation, Mitsubishi said the Xpander’s mix of MPV utility and SUV toughness and style is the key to the model’s commercial success. The company said the vehicle — configured in the Philippines to seat seven people — has the roomiest cabin in its class, and even out-sizes the cabin height of a competitor’s larger MPV because of a lower floor. This, Mitsubishi said, is the result of the Xpander’s monocoque structure that does not require its body to be mounted atop a ladder frame (unlike the larger truck-based MPV). A long wheelbase helps in stretching cabin space, too, although some Mitsubishi officials admitted the abovementioned MPV trumps the Xpander in cabin width (the Xpander remains widest among its ilk though, according to them).

The Xpander is powered by Mitsubishi’s MIVEC 1.5-liter, 103 hp gasoline engine that can be mated to a five-speed manual or a four-speed automatic transmission, either of which sends power to the front wheels. In Indonesia, the model is positioned to compete against the Daihatsu Xenia (sold as the Toyota Avanza in the Philippines) and the Honda Mobilio.

MMPC said other notable features of the Xpander include hill-start assist, active stability control, emergency stop signal, and a unique fascia that’s marked by Mitsubishi’s proprietary Dynamic Shield Concept styling.

To place their reservations, MMPC said customers can log on to www.xpander.mmpc.ph. A reservation fee of P10,000 is required, which must be paid in a Mitsubishi Motors dealership.

RLC opens office spaces in Ilocos Norte mall

ROBINSONS LAND Corp. (RLC) has opened new office spaces in the newly expanded Robinsons Place Ilocos Norte, looking to take advantage of the growing number of business process outsourcing (BPO) firms expanding into the provinces. 

In a statement issued Tuesday, the Gokongwei-led property developer said it has unveiled office spaces spanning a gross leasable area (GLA) of 7,829.24 square meters (sq.m.).

Accredited by the Philippine Economic Zone Authority (PEZA), the offices cover three out of four floors in Robinsons Place Ilocos in San Nicolas, Ilocos Norte.

“The site of Robinsons Place Ilocos makes it ideal for BPO offices since it is within close proximity to several universities — five minutes away from Laoag City and 20 minutes from the airport, and is easily accessible from the national highway,” RLC Office Buildings Division and General Manager Faraday D. Go was quoted as saying in a statement.

The company completed the expansion of Robinsons Place Ilocos in 2016, bringing its gross leasable area to 53,600 sq.m., against the previous 20,500 sq.m. RLC said this was the first premier lifestyle mall in Ilocos Norte. 

RLC also described San Nicolas as the center of business in the province, with the presence of local businesses in the retail, services, manufacturing, real estate leasing, printing and advertising, and distribution sectors. 

The Gokongwei-led property firm also has office spaces in Robinsons Luisita in Tarlac City, Robinsons Cybergate Cebu and Robinsons Galleria Cebu in Cebu City, Cybergate Delta in Davao City, and Cybergate Naga in Naga City. 

“BPO companies locate in the provinces to take advantage of less competition for talent, lower office rental rates, and lower cost of talent,” Mr. Go said. 

Property consultancy firms have been recommending that real estate developers build office developments outside Metro Manila, in a bid to decongest the metro and tap the talent pool in the provinces. The Oxford Business Group, for instance, cited Ilocos Norte as one of the up-and-coming areas outside Metro Manila in 2017 due to commercial and tourism growth. 

“The location can also serve as a back-up site for BCP (business continuity planning) and there is a significantly lower entry-level salary base as compared to Metro Manila. There are also sufficient telecommunications infrastructure in these provinces as well,” Mr. Go added. 

RLC’s net income attributable to the parent was flat at P4.56 billion in the first nine months of 2017, with revenues also almost the same as year-ago levels at P16.64 billion. 

The company will be conducting a P20-billion stock rights offering from Feb. 2 to 8, with each of the 1.1 billion common shares priced at P18.20. 

Shares in RLC were up 40 centavos or 1.94% to close at P21 apiece at the Philippine Stock Exchange. — Arra B. Francia

Muzzling the media

The shutdown of online media outfit, Rappler, reminds me of a sequence in the film, Walking Tall, the biopic about Tennessee Sheriff Buford Pusser. Stymied by an uncooperative judge, Pusser invoked a little-known provision in the city statutes, giving him authority to determine where to place the judge’s office. Pusser assigned the judge to the men’s room. Not surprisingly, the latter became very cooperative.

The lesson here is obvious: Don’t fight city hall. You can’t win — at least, that’s what conventional wisdom says.

In the case of Rappler — as well as other media organizations — the lesson is, don’t fight Malacañang. The Securities and Exchange Commission will get you — unless elements of the Philippine National Police knock on your door first (I understand tokhang is back).

The bleeding hearts protesting the use by the SEC of a “technicality” in shutting down Rappler’s operation may have forgotten the oft-used warning, “Those who throw stones should not live in technically vulnerable glass houses.”

The folks putting out Rappler probably knew from the outset that they were taking risks with their kind of investigative reporting. But they took their risks, nonetheless. Now, they must take their hits.

But while their Web site may have been ordered closed, that doesn’t mean it’s time for them to ride off into the sunset. Aside from recourse to the courts, they still have their best assets — themselves.

Unlike the hapless judge in the Walking Tall tale, committed and crusading journalists don’t need an office or the official sanction of government authorities to pursue their mission. They only need their head, heart and hand.

If Maria Ressa and her team haven’t lost their fighting spirit yet, they don’t need the SEC to give them the go-signal to proceed with their mission. In fact, they don’t need a Web site or investors.

They can continue writing their investigative pieces and posting their output on social media till Presidential spokesman Harry Roque turns blue in the face from calling their work fake news.

But that is where, with due respect, they should draw line.

Indeed, there is a thin line between sensationalism and objective but hard-hitting journalism. Without meaning to refer to Rappler, I have seen too many instances when ostensibly reputable media have crossed the line into sensationalism and even outright masturbation of the news.

While I sympathize with Ressa and the writers of Rappler, as well as with the media organizations that are loudly condemning the threat to press freedom, I think they should have watched the movie, Walking Tall, before they mounted their laudable but audacious venture. They were bound to be consigned to a virtual restroom, sooner or later, or be deposited in the trash bin.

Crusading journalists cannot expect any quarters from those whose lucrative lives they jeopardize.

According to a CNN report, the Philippines is one of the most hazardous countries for journalists, next only to Syria and Iraq, both of which happen to be war zones.

My nephew, Conrad de Quiros, used to tell me (when he was still actively writing his newspaper column, before he had a stroke) that Manila-based journalists were not usually the targets of hit squads, just members of the provincial press. Nonetheless, I advised him not to push his luck.

I’ve been told as much by relatives and friends who fear that I may be too critical of sensitive individuals who are in power. But that is an occupational hazard that one must be prepared to face — otherwise, flipping burgers would be a much safer trade.

During the repressive years of the Marcos dictatorship, the late Joe Burgos published the courageously anti-government paper, We Forum and Malaya. Only by the Grace of God was Burgos spared from being salvaged, although the same cannot be said about his son, Jonas.

Jonas Burgos, an activist, was reportedly abducted by the military and was never heard from.

That may say something about the unlamented Marcos government. It probably had the fear of God in some cases, such as that of Joe Burgos. Jonas Burgos disappeared during the tenure of President Gloria Macapagal-Arroyo.

Long before the advent of social media, the banner of the “mosquito press” (called thus for the relentlessness and fearlessness of their sting) was also held high by college publications, like the Philippine Collegian of the University of the Philippines.

Underground journalists also passed on mimeographed newsletters from hand to hand, to the consternation of the martial law censors. The Marcos-controlled TV and radio networks, as well as the broadsheets and tabloids in the Philippines and in the United States, were often scooped by the guerrilla media.

In the US, the late Alex Esclamado had to borrow from every available wallet in sight to keep his anti-Marcos Philippine News in print, having been deprived of advertising revenues by Malacañang fiat. In desperation, the Marcos minions offered Esclamado $12 million to sell his paper. He refused and fought on.

Alex Esclamado never missed a single issue of his weekly paper, although that left him very deep in debt. For his efforts, he was conferred the Philippine Legion of Honor by President Cory Aquino.

In Spain, in 1895, a hardy group of young Filipinos, Los Indios Bravos, published, La Solidaridad, a weekly newspaper, as the spearhead of the propaganda movement, dedicated to pushing for reforms by the Spanish colonial government in the Philippines. They risked the ire of the Spanish government but they proceeded, nonetheless. For their courage, their names have been enshrined in the pantheon of the nation’s heroes.

The first editor of the Soli, as it was referred to for short, was Graciano Lopez Jaena. He was subsequently replaced by Marcelo H. del Pilar. Unfortunately, the publication had to close down due to lack of funds.

Earlier, Jose P. Rizal pursued the crusade for reforms with his two novels, Mi Ultimo Adios and El Filibusterismo. Rizal published his books with borrowed funds.

Of course, we all know what happened to Rizal. Worse than what the SEC has done to Rappler. Much worse.

Let’s all pray that the Rappler team will only have to deal with the SEC and not with tokhang.

 

Greg B. Macabenta is an advertising and communications man shuttling between San Francisco and Manila and providing unique insights on issues from both perspectives.

gregmacabenta@hotmail.com

5,000 hectares of CARP land in Davao Region ‘problematic’

THE DEPARTMENT of Agrarian Reform-Davao Region office (DAR-11) said 5,000 hectares (ha) of land, which accounts for 50% of the remaining lots up for distribution under the Comprehensive Agrarian Reform Program (CARP), are “problematic,” DAR Regional Director Joseph H. Orilla told media that the problem mainly involves pending court cases arising from disputes raised by private land owners. “Majority of these areas are haciendas in Davao Oriental,” Mr. Orilla said, noting that several of the cases are pending before the Supreme Court. The 10,000 ha in Davao are part of the remaining 584,000 ha of land nationwide that have yet to be distributed to farmers. The distribution process has been taking so long, Mr. Orilla said, because “privately owned lands, like hacienda landowners, will have to be compensated by the government.” CARP, contained in Republic Act 6657, was passed in June 1988. — Maya M. Padillo