NOW Corp. and its chief executive Mel Velarde face a P1-million fine each from the Securities and Exchange Commission over their disclosures relating to the alleged P2.6-billion unpaid obligation of affiliate NOW Telecom to the government.
The SEC said it 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 for disclosing “misleading” information to the public.
The case stemmed from the Nov. 10, 2021 disclosure made by the IT firm and its CEO stating they have no knowledge of the details surrounding the motions filed by the National Telecommunications Commission with the Supreme Court seeking resolution on NOW Telecom’s P2.6-billion liability representing unpaid supervision and regulation fees and spectrum user fees.
The SEC said in a seven-page order dated June 15, 2023 it found no merit in the justifications provided by NOW Corp. and Velarde that their disclosure contained truthful and accurate statements.
The SEC—through its Enforcement and Investment Protection Department—said it did not buy the argument that NOW and Velarde have no knowledge of the specific details surrounding the NTC motion, as Velarde is also the chairman of the board of NOW Telecom.