Rappler’s Ressa, others charged with violating Anti-Dummy Law

ONLINE NEWS site Rappler CEO and Executive Editor Maria A. Ressa and six other members of its 2016 Board of Directors were charged by the Pasig Prosecutor’s Office with violation of the Anti-Dummy Law.
The charge of violation of Section 2-A of Commonwealth Act No. 108 or the Anti-Dummy Law, filed before Pasig City Regional Trial Court (RTC) Branch 265, is in connection with Philippine Depositary Receipts (PDRs) it issued to Omidyar Network Fund, LLC in 2015.
Charged along with Ms. Ressa are Rappler Managing Editor Glenda M. Gloria and 2016 directors Manuel I. Ayala, Nico Jose Nolledo, James C. Bitanga, Felicia Atienza, and James Velasquez.
All of them except Ms. Ressa, who is currently out of the country, posted bail of P90,000 before the Pasig City RTC Branch 265.
Arraignment for the case is scheduled on April 10, 8:30 a.m.
The Court of Appeals (CA) in February denied for lack of merit the motion for partial reconsideration of Rappler, Inc. and Rappler Holdings Corporation over their alleged violation of foreign equity restriction in relation to the PDRs awarded to Omidyar.
The CA ruled that Rappler, as a “mass media” entity, should be wholly owned by Filipinos, but the PDRs issued to Omidyar granted to the foreign company “control over corporate policies and affairs of a mass media entity.”
The appellate court in its resolution also remanded the case to the Securities and Exchange Commission (SEC), directing it to evaluate the legal effects of Omidyar’s donation of its PDRs to Rappler staffs.
The case stemmed from the decision of the SEC in January last yea revoking Rappler’s certificate of incorporation for “existing for no other purpose than to effect a deceptive scheme to circumvent the Constitution” and declaring as void Omidyar’s PDRs for being a “fraudulent transaction.” — VMMV