Manila Standard Corrects Inaccurate Article.
HDI license not in danger of revocation.
We write regarding the published article regarding the Anti-Dummy Law case.
There is no truth in the claim that HDI’s license is in danger of being revoked.
The three HDI companies were incorporated, and have been operating, as “advertising companies” which, under the law, allow the participation of foreign nationals in the affairs of the company. It was for this reason that in June 2016, a foreign national was permitted to sit as Chairman of HDI.
As a sign of good faith, HDI Admix took the initiative of getting a confirmation from the Securities and Exchange Commission relative to the nature of its business for proper guidance. As it turned out, however, the SEC subsequently in July 2016 erroneously classified HDI Admix as “mass media” the ownership and management of which are limited to Filipino citizens, or to corporations wholly-owned and managed by such citizens.
This came as a surprise considering that the classification of the three HDI companies as “advertising company” was in fact approved by the SEC when they applied for their incorporation and license to operate in 2012 (Admix), 2003 (Adventures) and 1992 (SO). This was never questioned since. Even though the SEC Opinion is of doubtful validity, HDI chose to comply with said pronouncement and immediately rectified its corporate structure. Thus, effective 2017 and in compliance with the SEC Opinion, the ownership, corporate affairs and management of HDI were legitimately vested to Filipino nationals. Unfortunately, the SEC Opinion which the company itself voluntarily secured with good intention was maliciously exploited to further an evil motive (which HDI will not tolerate).
Clearly, the cases which were cited by the Manila Standard as bases for the revocation of license of HDI relate to the SEC-approved corporate structure back in 2016, which structure is no longer existing and relevant in the present because of HDI’s subsequent compliance with the SEC Opinion. True enough, the Office of the City Prosecutor was not prepared to recommend, as in fact it did not recommend, the revocation of the licenses to operate HDI Admix, HDI Stopovers and HDI Adventures, for lack of genuine basis to question the current corporate structure of these companies.
We are confident that the cases against HDI are unmeritorious and will be dismissed as we let the law take its ordinary course. We assure you that this recent attack against the credibility of HDI is unfounded and was propagated merely by disgruntled individuals out of sheer desperation to make themselves relevant again in the business community. We have already instituted the appropriate remedies for the dismissal of the cases and question the Resolution of the City Prosecutor (finding probable cause against former officers of HDI) as well as the SEC Opinion classifying HDI as mass media.
HDI Admix, HDI Stopovers, and HDI Adventures
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