Journalist Maria Ressa. INQUIRER FILE PHOTO/LYN RILLON
The online news website Rappler led by Nobel laureate Maria Ressa won an appeal to restore its corporate license after the Court of Appeals (CA) overturned the decision of the Securities and Exchange Commission (SEC) to close the media company.
In a July 23 decision made public on Friday, the appellate court ruled that the SEC overstepped its authority in ordering Rappler鈥檚 shutdown in 2018.
鈥淟ike a bull seeing red, the SEC En Banc plowed through law and jurisprudence to reach its mark鈥攖he death of Rappler,鈥� the court said in its ruling, adding that the corporate regulator ignored procedure.
鈥淭hese actions have no place in a democratic state,鈥� the CA said.
The SEC declined to comment, saying it has yet to receive a copy of the decision.
Rappler鈥檚 operating license was rescinded in 2018 for violating foreign equity restrictions on media companies when it sold depository rights to a US-based company. The SEC upheld its findings in 2022.
鈥楪rave abuse鈥�
It was allowed to operate for the last six years despite the shutdown order.
Rappler had previously argued that the Omidyar Network, the philanthropic arm of eBay founder Pierre Omidyar, was a silent investor. Omidyar cut ties by donating the depository receipts to Rappler鈥檚 staff.
The appellate court said this 鈥渨aiver鈥� by Omidyar already 鈥渆liminated any and all constitutional violations committed鈥� by Rappler.
It castigated the SEC for not giving Rappler the opportunity to present Omidyar鈥檚 departure from the news organization as evidence.
鈥淪uch action is the height of grave abuse of discretion,鈥� the CA said. 鈥淩appler was indeed accorded preferential treatment鈥攁 negative one.鈥�
In its 48-page decision penned by Associate Justice Emily San Gaspar-Gito, the CA ordered the SEC to restore Rappler鈥檚 certificate of incorporation.
The CA said it 鈥渄oes not agree鈥� with the SEC鈥檚 鈥渄raconian interpretation鈥� that mere violation of the use of the depository receipts, even after that violation was remedied, 鈥渨arrant the obliteration of a mass media entity.鈥�
Ressa welcomed the decision, saying it was 鈥渁 vindication after a tortuous eight years of harassment.鈥�
鈥淛ournalists are not the enemy,鈥� Ressa told a news conference hours after the ruling went public.
鈥淲e are a Filipino company. We are independent. And it brings us relief and joy that the CA is standing with us and with journalism. This inspires us to do more, to do better,鈥� Ressa said.
鈥榃e had to have faith鈥�
She reaffirmed what she said was Rappler鈥檚 continued respect for and faith in the courts.
鈥淚 think what was clear through all of this is that there are good people in our judiciary, there are good people in government and we have banked on that. We had to have faith,鈥� Ressa said.
Ressa won the 2021 Nobel Peace Prize along with Russian investigative journalist Dmitry Muratov in a decision widely seen as an endorsement of free speech rights that had come under fire worldwide.
She still faces at least two remaining charges, including a cyberlibel conviction where she could face up to over six years of jail time. She is currently out on bail.
Rappler and Ressa were charged in at least nine indictments that included tax evasion cases, which have been dismissed, after earning the ire of former President Rodrigo Duterte for its reporting on his antidrug campaign that killed thousands of people.
Mocked by Duterte
A day after the SEC announced its decision to shut down Rappler, Duterte called the news site a 鈥渇ake news outlet鈥� that published stories 鈥渞ife with innuendos and pregnant with falsity.鈥�
鈥淪ince you are a fake news outlet, then I am not surprised that your articles are also fake,鈥� he said. 鈥淵ou鈥檙e not only throwing toilet paper. You鈥檙e throwing shit at us. You have gone too far.鈥�
Duterte ridiculed Rappler鈥檚 argument that the SEC decision constituted harassment and an attack on press freedom.
鈥淒on鈥檛 abuse it (press freedom) too much. It鈥檚 a privilege in a democratic state. You have overused and abused that privilege in the guise of press freedom,鈥� he said.
In February 2018, Duterte banned all Rappler reporters from entering Malaca帽ang and covering his events. 鈥擶ITH REPORTS FROM聽 INQUIRER RESEARCH