Unwrapping Rappler

The Philippine Securities and Exchange Commission (SEC) revoked Rappler’s certificate of incorporation. Rappler is a Philippine media organization that, in the Philippines, is required to be 100% Filipino-owned and controlled. However, it needs money to continue as a going concern and most of the money are in the hands of foreigners. How now?

It seems that other media organizations found the answer: Philippine Depository Receipts (PDR). I am no expert on this and what I know about them comes from reading two articles, both from the Inquirer. In simple terms, it is a participation in profits. The shareholder allows third parties to purchase a share in the profits earned by his stocks in the media organization. In this manner, the legal requirement on Filipino ownership is not breached because the stocks remain in the name of the shareholder. The investor only gets a part of the earnings (dividends) earned by the stock; so, they could not even participate in the management of the media organization. That’s the theory at least.

What Rappler offered its investors to their PDRs was a bit more than the regular PDR. They actually allowed the PDR investors to have a say if Rappler was ever inclined to amend its Articles of Incorporation or undertake some manner of reorganization. Under the Rappler PDR, you can’t do that unless the PDR investors says its okay to do so. Boom. They’re dead.

According to the SEC, that provision effectively gives the PDR investor a measure of control over the media organization, and if the investor is a foreigner — anyone other than a Filipino — you just violated the legal requirement of 100% Filipino ownership and control. The SEC, therefore, cancelled the PDRs. Makes sense to me.

Here’s where it doesn’t make sense: not happy with just cancelling the PDRs, the SEC went to the max and cancelled Rappler’s certificate of incorporation because it violated the legal requirement to be 100% Filipino. Why did they impose so extreme a penalty as cancelation of its certificate of incorporation? Many suspect the hand of the Government of which Rappler has been critical of. To be fair, Rappler was also critical of the previous administration but the current one, with its controversial war on drugs and cozy relationship with China, has been a far more frequent subject much to their discomfort. People, therefore, see this as payback.

As I noted before, PDRs are not unique to Rappler. Other media organizations like ABS-CBN and GMA have also issued PDRs, and some have been bought by foreign investors. However, the SEC points out that these PDRs do not have the controversial provisions that the Rappler PDRs have. Nevertheless, it was pointed out that PLDT, a telecom company also required by Philippine law to be 100% owned and controlled by Filipinos, also violated the 100% Filipino requirement when it issued its PDRs but they were allowed to rectify their mistake and PLDT still exists today. Why was the SEC then so harsh with Rappler?

The Commissioners of the SEC were appointed by the previous Administration; so, there are those who do not see this as payback. How could it be when these people are Aquino appointees but, in the Philippines, everything is possible and political butterflies thrive in great numbers. Perhaps they do not want to share in the fate of other heads of commissions and government agencies and instrumentalities who were unceremoniously kicked out for one reason or another. In this administration, a “single whiff” of corruption is supposed to be enough to have your head roll (but it also depends on who is doing the sniffing and who is being sniffed at as it appears that friends of the administration usually gets a free pass and just gets shuffled around the vast governmental bureaucracy). Are there skeletons in the SEC closet that could cause them their heads?

Or did the SEC just make an honest mistake when it imposed the ultimate penalty? It said that Rappler can still operate and it does have the right to ask the SEC to reconsider its decision and, failing that, appeal the same all the way to the Supreme Court, which, unfortunately for them, are majority pro-government. This Government in particular; so, good luck with that but at least there’s a chance no matter how slim, and with litigation cases moving at a snail’s pace in Philippine courts, they may even survive this Administration and get a reprieve in the next.

The Inquirer articles on the PDR says in Rappler’s defense that the controversial provision is just a measure of investor protection; however, if that protection also grants them some control over the company, and the investors are foreigners, then that still violates the legal requirement to be 100% Filipino-owned and controlled. The Rappler’s lawyers should have carved that out; and investors are left with the choice of take it or leave it. It should be noted that other Rappler PDRs were not cancelled because there was no control granted to holders of those PDRs.

For now though, some people suspect that there is an attack on the free press with the Government setting its eyes next on the Inquirer. For sure, the Administration has not been happy about the coverage it has been getting from these two but, usually, governments just let it slide. It is after all the hallmark of a healthy democracy to have a free press. With populism so very in these days, however, democracy seems so last century.

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Contra Mundum

Once in a while, you get to see a beautiful story play out before your eyes. In this case, all your senses are piqued by an amazing film called Ang Larawan (The Portrait) a work of art by three of the Philippines’ best artists: Nick Joaquin, Rolando Tinio and Ryan Cayabyab.

The story is about a renowned artist and his family facing the many changes challenging each of the characters. It is the story of their ancestral house and its uncertain future in a changing world. And all of that is captured in a painting we can only see glimpses of but never the whole.

And that is where the fun is in this film. People’s lives can only be glimpsed in parts but the whole will sometimes surprise you. The film which deals with these people’s lives, on the whole, is a masterpiece. There are bits and pieces here and there that appear off: a song better left unsung (dialogue would have done); a miscast character; and a song line that is forced into the melody, but the film is so awesome these irritations quickly pass.

Before we saw the film, we heard that it was being pulled out of some theaters, which is unfortunate. This may be an artsy film but it is the artsy film people should see. That may be an elitist thing to say but this world needs more artsy films. It’s the kind of film that can make you reflect on your life and where you want to go with it. That we all need to do not only because a new year is just about to roll in but the world today just needs more thinking people in it. That is the challenge of the film: seeing the world as it is, do we have the guts to go against the world? Contra mundum.

Picture that.

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Fathers and their Daughters

‘Twas the week before Christmas…and drama was in the air. No, this isn’t a story of a young couple looking for an inn a couple of thousand years ago. This is the Philippines in December 2017. Two stories grabbed the headlines: the first is about the very public squabble of a father with his daughter over social media; and, the other, the mysterious disappearance of a young lady from a mall.

We are given tidbits about everything but never the whole story. One day we just stumbled upon a father ranting against his daughter. Apparently, the daughter had previously posted a blind item against her father and here is the father hitting back. Piecing the story might be a case of hit or miss but it would seem that the father had beaten someone who was close to the daughter. The father responded that he won’t hesitate to protect his daughter even if others, including the daughter or her mother, doesn’t do anything about it. Seems that the daughter doesn’t appreciate her father’s actions and declares that her father always spoils Christmas for her and the father replies that she is free to change her family name if she wishes. A very public spat indeed as mainstream media picked up the story from social media and brought the story to those offline.

As serious as the situation above was, most I think viewed it as nothing more than entertainment. Something that feeds our inexplicable need for voyeurism. It was, however, quickly followed by one even more serious. This one started with an appeal for help to find a missing sibling that went viral over social media. The father is a lawyer so there was speculation that the disappearance was connected with his work. CCTV footages showed her trying to break a thousand peso bill then…poof! Gone. Things worsened when it was reported that her belongings were left at the coffee shop. A couple of days later, however, the daughter was spotted in another mall and was soon in custody. It seems that the father had scolded the daughter a day or two before her disappearance. Some speculated it was all a sick social media game. Then there’s the official line that she may be depressed.

Two things stood out for me in both stories: first, the role of social media; and, second, the father-daughter dynamic that is so complex that, sometimes, I’m glad I don’t have one but at the same time regret that I don’t have one.

There is a third: that whatever else that may happen, these people deserve some privacy. Yes, even the father-daughter tandem who brought their spat to the public through social media. Like I said, I cannot imagine what must be going through their minds when these people — all of them — did what they did. It doesn’t matter what theories we put out there about why things turned out the way it did. In the end, it’s none of our collective business. The important thing is that, in the case of the missing daughter, we helped getting her back to her family; and, in the case of the daughter in the middle of a public spat with her father, we are witnessing what some of us may be going through on a daily basis. In either case, it is not for us to look further. We simply take it as it is, and if you’re lucky (or unlucky?) enough to have a daughter of your own, then this should be a reminder that you have a lot to do in building and keeping a relationship with your daughters and, indeed, to everyone. Good luck to us all on that.

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The Last Jedi

I think I understand why some fans are so against this episode: we all grew up on the Skywalker myth that Anakin, then Luke, would bring balance to the Force. Luke even thought that Ben Solo, the son of Han and Leia, would follow him as the next great Jedi. Instead, we see the bloodline turn to the dark side with the rise of Kylo Ren and the light relying on a host of nobodies: Rey from nowhere and a poor stable boy.

We also saw a changing of the guards. Han has died. Luke too. Leia is sure to follow since Carrie Fisher has passed away and Disney is not inclined to digitally resurrect her for the final episode. We are left with Poe as the leader of the rebellion and Rey possibly the last Jedi. It is not certain that she will call herself that after all this. Kylo Ren himself has not taken the Darth name although that would not be unusual since other Sith have used titles like Count and General rather than Darth. In any case, Kylo Ren himself is against being called a Sith because he wants the old ways gone, killed if necessary. No more Sith or Jedi. Again, it all drifts away from the familiar galaxy we knew.

Then there’s all the confusion about who was what. Before, we understood that the Republic became the Empire until Luke & Company destroyed the Empire and restored the Republic. What remained of the Empire became the First Order and where they still operated, there arose a rebellion. We learn in this episode, however, that the First Order destroyed the Republic and is now in control with whatever remaining resistance scattered in the outer rim. The Skywalker rebellion was in fact a failure. Nobody even came to their rescue even if Leia herself made the call. Again, how so not the Star Wars of old.

But that is the beauty of this episode. It does not concern itself with Jedi or Sith, Republic or Empire. There is simply the Light and Dark, and the way Rey moves between both sides makes it appear that she, not some Skywalker, will bring balance to the Force. If anyone was attentive enough to note that Rey has the Jedi scriptures in the Falcon, then one can surmise that it is she who will finally give meaning to those books. The next generation of Force users may not be called Jedi but they will certainly be the future of the franchise.

Then there’s Luke. Jaded but a child of the light he will always be and, in the end, fights for the light. Luke’s story may have ended but hope still burns brightly for the galaxy.

And that, ladies and gentlemen, is how you do an awesome second episode to a trilogy.

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Uber, the Game-Changer, not?

The Philippines has a way of messing things up not only for itself but for what should be a good thing.

Take Uber for example. While it faces its own troubles for failing to comply with legal regulations, its business model was supposed to be an improvement from the current arrangements followed by local taxi companies. In the Philippines, taxis are usually owned by a person who leases the cars to drivers. Compensation is set at a certain amount (the “boundary”) and anything earned by the driver above that boundary is his. It’s not that easy because the driver will have to pay for the gas and other minor expenses. Add to that the fact that taxi meters are based on distance traveled; so, if they get into heavy traffic, they lose big time.

Enter Uber. Now, drivers can own their cars and keep all the profits; well, after Uber gets its cut. The cut is less than a boundary and there are bonuses that Uber gives to allow the driver to earn more if he is willing to work more. All good, yes?

Enter the Philippines. When Uber first landed here, it was basically, well, illegal. There was no law or regulation covering their new “ride-sharing” model. They didn’t care, and when the government finally came up with a regulation for them, they didn’t follow it. Everyone knows that Uber delights in its “disruptor” label but operating illegally is putting that label on a whole new level. These days, Uber is facing multiple troubles in various countries where it operates. In some, it has decided to shut down, while in others, it is fighting in courts or regulators for its place in the sun.

To the riding public, especially in the Philippines, Uber has been a god-send. To drivers, however, things might not be that great. Aside from getting caught in the legal battle between Uber and its regulator, some have not made the transition to what should be a better life. While some have managed to get new cars under financing, and the earnings appear to be sufficient to make the monthly amortization, there are others who have been hired merely as drivers and, again, fall under the boundary system. There are those who have bought cars and hired drivers to drive them under the Uber brand, and while some drivers are used to that — they used to be taxi drivers — it has been harder. It appears that the “operators” make a cut on everything including the bonuses and other monetary incentives given by Uber to drivers.

So, in the end, even as Filipinos accuse local taxi companies of opposing Uber, and other ride-sharing companies, in order to protect their niche, it appears that “they” found a way to subvert Uber by making it like any other local taxi company. Sad. Of course, there will be those who will drive for Uber using their own cars and keep all the profits for themselves, how much I still have to figure out, but how many may soon change. I once had my car serviced in my casa and I found out they were partnered with Uber and there were drivers there applying to drive. Based on the interviews I overheard, Uber reps ask the drivers if they were driving for themselves or for another and there were some who said they were driving for the car owners. It seems that while the Philippines may not be good at start-ups, it does excel in innovation. Whether that’s good or bad is another matter altogether. In this case, it is definitely bad.

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The Consulting Blogger

The Philippine Senate is trying to address the issue of fake news. It called together a number of resource persons from both the public and private sectors to participate in a hearing with an end in view of crafting a law to curb the proliferation of fake news. One of those participating is a blogger, RJ Nieto, writing under the pseudonym the Thinking Pinoy. The thing about the Thinking Pinoy is that he is both a blogger and a consultant for the Department of Foreign Affairs although that is not a singular trait to him as Mocha Uson shares the same distinction of privately blogging while holding the position of Assistant Secretary in the Presidential Communications Operations Office, the office of the Philippine President’s spokesperson, who was also in the same Senate hearing with the Thinking Pinoy. Understandably, some senators were concerned that they are straddling the two worlds of public (as in government service) and private life and were taken to task.

While Ms Uson invoked her right to self-discri…incrimination (her words), the Thinking Pinoy came out swinging. He complained that what he was getting from the DFA was a pittance (P12,000/month) not even enough for taxi fare, that the DFA needs him more than he needs them, and that he was just there to help the government be successful…and he made the point that he was not bragging. Wow. Ikaw na (You the man)!

Admittedly, P12,000 from a single employer is small. However, he was able to go to Russia (for a presidential state visit that had to be cut short because of the Marawi incident) and the US (for the UN General Assembly) at the government’s expense; again, with Ms Uson but while we can imagine an Assec like Mocha from the PCOO having some justifiable reason to be there, the presence of a DFA consultant in those meetings boggles the mind. What exactly is he a consultant for? A consultant according to Merriam-Webster, is an expert. One who gives professional advice. What exactly is he a pro on? According to the Bases Conversion Development Authority, it offered the Thinking Pinoy a consultancy contract to promote awareness and generate support for its projects but it was rejected by the Thinking Pinoy. His contract with the DFA says he would lend his platform (as a blogger) to reach more overseas Filipino workers. He is supposed to be the head of strategic communications for the DFA Office of the Undersecretary for Migrant Workers Affairs. So, he is supposed to help OFWs by giving them an additional way of reaching the DFA with their concerns. Okay. How does that connect with his stints in Russia and New York?

He says he is like a slave at the DFA but if his work is just to provide his platform to bridge OFWs to the DFA, something that does not seem to even need his presence at the DFA (and, therefore, no need for taxis to get from here to there and back), and occasionally join government officials in official trips overseas (all at the government’s expense), then P12,000 isn’t bad at all. We seem to be stretching the term consultant here but what else are we supposed to call him I wonder.

He says that the DFA needs him more than he needs the DFA, which, I suppose, comes from the fact that he has thousands of followers. I can see how that can be relevant for the BCDA had he accepted the contract because communications in that case would have been outward: from BCDA using his platform to people everywhere. In the case of the DFA, however, communication is inward: from the people to the DFA, in which case, his platform is just a steppingstone to the DFA. I don’t think he would be directly answering OFW’s questions for the DFA. Is he? Is he a foreign service officer? Is he an expert on what the DFA does? Is he an expert on OFW affairs/concerns? Did he work for the Overseas Workers Welfare Administration at any time, or affiliated with an NGO dealing with OFWs? By every indication, it seems he is a communications man not an OFW advocate. We already stretched the term consultant to accommodate him in the DFA. I think it’s an even bigger stretch to try to imagine how the DFA would need him more than he, the DFA. As a friend pointed out in a Facebook post, the truth is neither of them needs the other, and suggests that perhaps they should part ways.

The thing is that we understand why you are there in the same way we understand how Ms Uson became an Assec. You are very supportive of the current administration. That’s fine. If you were a former supporter of the past administration and switched over to the new one, then that is also fine. That is normal in the Philippines: political butterflies. No judgements from me there. Just don’t think too highly of yourself. Not bragging? Maybe but it certainly comes across as arrogance. No one is indispensable in government. Political appointees are co-terminus with the power that appointed them. Contracts are for a given period, renewable by agreement of the parties to the contract. Whether or not you do provide an invaluable service to the DFA, we leave to the DFA to determine; however, do not ever think your persona as a blogger, or your connections to the powers that be, shields you from criticism or, worse, sanctions. All of that can only go so far. As the country’s only consulting blogger (that I know of anyway), you are in a position to do great service. Use it well for you are also in a position to do great harm. May that never be what we remember you for when you finally rejoin us in obscurity.

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We, the People

No administration is ever perfect: the Marcos dictatorship; the Aquino different-faces-same-problems; the Ramos money-making machine; the Estrada alcohol-induced-policy-making parties; the Macapagal-Arroyo corruption; the younger Aquino’s no-action-is-an-action attitude (and when they did act, it was a disaster); and the current “kill them all, let God sort ‘em out” policy.

We, the People were right in calling them out every time they failed us. There are those who would become silent whenever the person involved is their candidate or choice as president but someone has to keep calling them out to keep them in line. We have to treat every one of them in the same way not because we don’t like them — well, maybe to a certain degree — but because we care about our country. We scream not because we like screaming but because we have to call attention to their wrongful acts in the hope that they will correct it and avoid repeating it.

Being silent will not help. Our blind loyalty will doom us. We have to act when we need to in order to keep our leaders in line, and where necessary, hold them accountable.

We do it regardless of who sits in Malacañang because we, the people, need to. For love of our country and the generations that come after us. We owe it to them.

We are the Philippines.

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