NOW Corp., a listed company with interests spanning telecommunications, media, and technology, said it will elevate its case to the Court of Appeals after the Securities and Exchange Commission En Banc upheld a finding that the firm disclosed misleading information to the public.
NOW told the Philippine Stock Exchange that the SEC En Banc affirmed the earlier ruling of the agency’s Enforcement and Investor Protection Department, which found that the company had issued misleading statements regarding alleged unpaid government fees. The decision imposed a fine of P1 million each on the company and its chairman, Mel Velarde. It said the SEC also directed the EIPD to conduct further investigation, if warranted.
The case traces back to a dispute involving the National Telecommunications Commission, which stated that as of December 2005, NOW Corp. had unpaid supervision and regulation fees of about P126.1 million and spectrum user fees of roughly P9.7 million. The NTC said the company was disqualified for nonpayment of these fees.
NOW, however, maintained that its prior disclosures were not inaccurate. The company cited jurisprudence stating that unless a decision is final, no interest or penalties may be added to contested amounts. On this basis, NOW said it would “fully contest” the SEC En Banc ruling before the appellate court.
The company emphasized that the ruling and the fines imposed would have no impact on its financial condition or business operations, noting that it intends to pursue all available legal remedies.
NOW and Velarde had earlier sought the reversal of the EIPD’s orders, which were linked to disclosures involving an alleged multibillion-peso government liability of an affiliate. With the case now headed to the Court of Appeals, the dispute is set to move into its next legal chapter.
