MANILA (Reuters) - The Philippines’ justice department ordered investigations on Wednesday into possible criminal liability of Rappler, a news site known for challenging the government that has been dubbed a “fake news outlet” by the country’s controversial president.

Illustration of the Rappler website January 16, 2018. REUTERS/Thomas White/Illustration

The Securities and Exchange Commission (SEC) announced on Monday it had revoked Rappler’s license for violating the constitution’s restrictions on foreign ownership of media, ruling that one of its American investors had the power to influence its operations, despite not owning any shares.

Rappler is permitted to continue operating pending appeal, but the SEC decision prompted outrage among human rights and media groups, which accused President Rodrigo Duterte of punishing Rappler for its reporting. Duterte has denied that and his aides say media freedom is not under attack.

Justice Secretary Vitaliano Aguirre said Rappler had clearly broken an anti-dummy law under existing corporate regulations, so it was necessary for it to be thoroughly investigated by the department for other violations.

“We are going to see if there are other laws violated by anybody in connection with this decision of SEC,” Aguirre told reporters at a groundbreaking ceremony for a new justice facility on Wednesday.

According to a department order seen by Reuters, Aguirre also granted the National Bureau of Investigation (NBI) the authority on Wednesday to investigate and build a case against Rappler “and if evidence warrants, to file the appropriate cases against those found liable”.

Rappler’s acting managing editor, Chay Hofilena, described it as “a fishing expedition, and pure and simple harassment.”

“It’s all the more clear and blatant what the government’s agenda is: they’re dead-set to get Rappler and kill press freedom.”

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Aguirre’s order contradicts other government officials, who have insisted the administration is not going after Rappler.

The government says the SEC, an independent body, initiated the investigation into Rappler’s ownership, but the SEC has confirmed that it was acting on the request of Solicitor General Jose Calida, a close associate of Duterte.

Duterte on Tuesday furiously rejected suggestions that he had influenced the SEC’s decision and took aim at Rappler for what he called fake news and stories “pregnant with falsity”.

Aguirre said the president had no hand in the legal action the justice department was taking, insisting it was its job to prosecute when criminal or civil cases came its way.

Rappler chief executive Maria Ressa told news channel ANC earlier on Wednesday that it was “ludicrous” to say that one of its two American investors, Omidyar Network, created by eBay founder and entrepreneur Pierre Omidyar, had any control over the news site, or veto powers on company decisions.

Rappler said its filings to the SEC in 2015 made clear that just like several other media outlets, foreigners had invested in some of its Philippine Depositary Receipts (PDR), but did not own any shares, or have a say in operations.

Presidential legal counsel Salvador Panelo said the SEC case against Rappler was not part of a strategy of Duterte to stifle dissent.

“He doesn’t hate criticism. What he hates or reacts against is false information or news,” Panelo told ANC.</s>Major Philippines news outlet Rappler has vowed to continue its reporting after the government handed down a ‘kill order’ revoking the company’s license to operate.

The ruling by the Securities and Exchange Commission (SEC), the nation’s corporate business regulator, was made public on Monday. According to government officials, Rappler’s license was withdrawn because of its failure to comply with media ownership laws, an allegation which the company denies.

The decision to wipe Rappler’s certificate of incorporation stems from the news outlet’s issuing of Philippines depositary receipts allegedly sold to foreign entities.

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“The constitution sets restrictions on the ownership and management of mass media entities to which all must abide,” said a spokesperson for Philippines President Rodrigo Duterte.

“The issue at hand is the compliance of 100% Filipino ownership and management of mass media. It is not about infringement on the freedom of the press. No one is above the law. Rappler has to comply.”

Rappler journalists have reported on the death toll of Duterte’s drug war, as well as corruption allegations from within the government. In his 2017 ‘state of the nation’ address, President Duterte questioned Rappler’s operation, adding that the company would end up in American ownership.

On Tuesday, Harry Roque Jr, presidential spokesperson, denied that the Rappler decision was an attack on press freedom.

“[The] truth is the reporter of Rappler is still in our press briefing. She is not being prevented from exercising her profession as a journalist,” he said.

“None of the individuals behind Rappler will be prevented from performing their duties as journalists.”

Rappler has labelled the government’s decision as harassment “pure and simple”.

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“The SEC’s kill order revoking Rappler’s license to operate is the first of its kind in history - both for the Commission and for Philippine media,” a Rappler statement read.

“What this means for you, and for us, is that the Commission is ordering us to close shop, to cease telling you stories, to stop speaking truth to power, and to let go of everything that we have built – and created – with you since 2012.”</s>MANILA, Philippines—A popular news website that has been critical of the government of Philippine President Rodrigo Duterte was shut down by the country’s securities regulator, a move the company called harassment.

The nation’s Securities and Exchange Commission said in a statement published on its website Monday that it had found Rappler Inc. liable for violating constitutional requirements on foreign-ownership limits and revoked the company’s certificate of incorporation.
Following the Securities and Exchange Commission of the Philippines' revocation of Rappler's license, the National Bureau of Investigation of the Philippines launches a probe into Rappler.