NOW Corp. to contest P1M fine slapped by SEC

MANILA, Philippines — NOW Corp. is set to file a motion for reconsideration against the P1 million fine slapped by the Securities and Exchange Commission. 

The IT firm indicated in a disclosure sent to the local bourse on Tuesday that it “disagreed” with the order of the SEC’s enforcement and investor protection department. 

The P1 million fine comes from the firm’s alleged violation of Sec. 24.1(d) of the Securities Regulation Code, dating back to NOW Corp’s disclosure back on Nov. 10, 2021.

The SEC’s order tasked NOW Corp. and Mel Velarde to pay P1 million for allegedly “disclosing misleading information” to the public.

In its November 2021 disclosure, the company asserted that it had no knowledge of details of the motions filed by the National Telecommunications Communications through the Office of the Solicitor General. This involved a P2.6 billion liability that represented unpaid Supervision and Regulation fees and Spectrum User fees of NOW Telecom Company, Inc., a separate entity. 

NOW Corp. indicated in a disclosure sent on Nov. 11, 2021 that since “it is not a party to said case, the company has no knowledge of the specific details surrounding the alleged motion filed by the National Telecommunications Commission through the Office of the Solicitor General with the Supreme Court.” 

“Per confirmations made with NOW Telecom, this matter has been referred to its legal counsel for proper action. The Company has been advised by counsel that the legal issue raised in the case is still covered by the sub judice rule which restricts comments and disclosures on legal issues in pending judicial proceedings,” the 2021 disclosure indicated.

NOW Corp’s disclosure on Tuesday indicated the SEC ordered payment within 15 days of receiving the order. 

Shares in NOW Corp. ended trading down 2.9% on Tuesday at P1.34 apiece. — Ramon Royandoyan