NOW Corp. and its founder, Mel Velarde, have been hit with a fine by the Securities and Exchange Commission (SEC) for allegedly misleading the public.
In a regulatory filing, NOW Corp. disclosed that it received an order from the SEC’s Enforcement and Investor Protection Departmen (EIPD), stating that the company and Velarde are administratively liable for violating the Securities Regulation Code.
The alleged violation stems from NOW Corp.’s disclosure on November 10, 2021, in which the company claimed to have no knowledge of the specifics regarding the motions filed by the National Telecommunications Commission through the Office of the Solicitor General.
These motions pertained to a P2.6 billion liability, representing unpaid supervision and regulation fees, as well as spectrum user fees of its subsidiary, NOW Telecom Company.
“Accordingly, NOW Corp. and Mel Velarde are administratively liable for violation of Sec. 24.1 in relation to Sec. 54.1 of the SRC for disclosing misleading information to the public and are hereby directed to pay P1 million each within 15 days from receipt of this order,” the SEC said.
NOW Corp. has expressed its disagreement with the SEC’s decision and has announced its intention to appeal the ruling made by the EIPD.