US investor transfers interests in Philippine news site Rappler to fend off government ‘attack’
The site, known for its tough scrutiny of President Rodrigo Duterte, had its operating licence revoked by the Securities and Exchange Commission last month for violating laws on foreign ownership
An American investor in a Philippine news outlet whose licence was revoked said on Wednesday it was transferring its interests to its local partners to remove an “artificial barrier” being used by the government to stifle its operations.
A partner at Omidyar Network, the philanthropic arm of eBay founder Pierre Omidyar, said that it had agreed to donate to the managers of news site Rappler its Philippine Depository Receipts (PDRs), but was not severing ties and would continue to support it.
Rappler, known for its tough scrutiny of President Rodrigo Duterte, had its operating licence revoked by the Securities and Exchange Commission last month for violating laws on foreign ownership.
Duterte last week cited that decision in banning Rappler from covering his events, prompting outrage among local media groups.
Rappler is operating normally pending an appeal and says the SEC decision is baseless, because its foreign investors neither owned shares nor had a say in its operations.
“This I think is a politically motivated attack, it is not a point of law. And so we feel that by making the decision, by donating the PDR, we are essentially taking away any barrier which has been put in place,” Stephen King, a partner at Omidyar Network, said in a teleconference with the media.