The Securities and Exchange Commission (SEC), has imposed fines against Now Corp. and its chief executive officer Mel Velarde for their misleading disclosures concerning the telco firm’s P2.6 billion unpaid obligation from the National Telecommunications Commission (NTC).
In an order dated Feb, 16, 2024, the SEC upheld its decision to impose fines of P1 million each on NOW Corp. and Velarde after it rejected their request for reconsideration for lack of merit.
The case stemmed from the Nov. 11, 2021, disclosure made by NOW Corp. and Velarde stating they had no knowledge of the details surrounding the motion filed by the NTC with the Supreme Court seeking resolution regarding NOW Telecom’s P2.6 billion liability representing unpaid supervision and regulation fees (SRF) and spectrum user fees (SUF).
The request for reconsideration, dated July 3, 2023, contested the SEC order issued on June 15, 2023, which found NOW Corp. and Velarde administratively liable for violation of Section 24.1(d) in relation to Section 54.1 of the Securities Regulation Code (SRC) for failing to disclose material information to the public.
In its latest order, the SEC maintained that NOW Corp. and Velarde “cannot simply deny that they were unaware of the details surrounding the Motion filed by the NTC.”
“To be simply dismissive about it and to nonchalantly disclose that ‘The company has no knowledge of the specific details surrounding the alleged Motion field by the [NTC]…’ created a misconception to the investing public,” the SEC said.
The SEC insisted “such disclosure is misleading as NOW Corp. and Mr. Velarde are fully aware of the specific details surrounding the Motion or the Case, that is, the unpaid SUF and SRF of Now Tel with NTC.”
