The Securities and Exchange Commission (SEC) has slapped NOW Corp. and its chief executive officer Mel Velarde with P1 million fine each for misleading disclosures relating to the P2.6-billion in unpaid obligation of affiliate NOW Telecom to the government.
The SEC penalty stems from a National Telecommunications’ (NTC) case against Now’s unit NOW Telecom Company Inc. over unpaid supervision and regulation, as well as spectrum fees worth P2.6 billion.
The SEC in its decision did not accept Now’s argument that it does not have “knowledge of the specific details” about the NTC case, arguing that while Now Telecom is a unit, it remains a separate entity from the mother company and is not a party to the case.
The SEC, however, noted Velarde is also the chairman of the board of NOW Telecom.
The SEC in its ruling on the case “there is a failure to make a full, accurate and timely disclosure of a material fact or information about securities as mandated compliance prescribed to a listed company.”
The SEC said as one of the concurrent key officials of both NOW Corp. and NOW Telecom, Velarde is “considered having ipso facto participated in the transactions” relating to the unpaid obligations of NOW Telecom.
