The House Committee on Legislative Franchises has issued a show cause order against officials of the Securities and Exchange Commission (SEC) to explain why they should not be cited in contempt for directing Multiply to cease its business operations.
The order, dated May 31, directs SEC officials to provide an explanation for its issuance of a closure order against the website despite its earlier commitment to provide a provisional authority allowing Multiply to continue operations until such time that the Congress has made a decision on the website’s application.
The show cause order was received by the SEC only on Monday. It was addressed to SEC Commissioner Manuel Gaite, Deputy Commissioner Kelvin Lester K. Lee, Deputy Commissioner Delilah Deles, and Legal Branch head Ella Blanca Lopez.
“The act of the SEC constitutes undue interference on and disobedience to the exercise of the power of the House of Representatives, and therefore, an affront to its dignity and an inexcusable disrespect of its authority,” the order read.
“Your failure to comply with this Order within the period prescribed will result in a finding against you for contempt of the House of Representatives and subject you to other actions that are within the powers of the House of Representatives to enforce,” it added.
Multiply on Thursday urged SC to nullify and set aside the SEC’s order, claiming that the commission “gravely abused its discretion” when it issued a cease and desist order.
It also argued that NTC’s order “violates the right of the public to information and curtail freedom of speech, as well as cause serious and irreparable damage on Multiply and thousands of its employees if its implementation is not halted.”
