SEC belies claim that KAPA is now registered as crowdfunding intermediary

The Securities and Exchange Commission (SEC) has denied claims that KAPA Community Ministry International has secured the approval to proceed with crowdfunding activities in the Philippines.

In a statement released Monday, the SEC said KAPA is not registered with the corporate regulator. It earlier branded KAPA as an investment scam.

“To set the record straight, KAPA is not registered with the Commission under SEC Memorandum Circular No. 14, Series of 2019 or the Rules and Regulations Governing Crowd Funding either as a crowdfunding intermediary or funding portal, nor has it a pending application before the Commission under said Rules,” the statement read.

“Furthermore, KAPA through its counsel on record has disclaimed authorizing the publication of a myriad of posts on social media claiming that only authorized officers of KAPA, namely: Rene Catubigan and Ronnie Garay may speak on behalf of the entity,” the SEC added.

Various videos posted online showed that Pacam Radio anchors Roger Abing Camingawan and Daniel Flash Villas claimed, among others, that KAPA Community Ministry International has already registered with the commission as a crowdfunding entity, the commission noted.

The Court of Appeals (CA) has issued a freeze order on KAPA’s bank accounts and other assets last June, in the absence of permits to solicit funds from the public.

That announcement came days after President Rodrigo Duterte ordered the National Bureau of Investigation (NBI) and the Philippine National Police–Criminal Investigation and Detection Group (PNP–CIDG) to shut down KAPA Ministry.

The SEC made permanent in March a cease and desist order (CDO) against KAPA Ministry, stopping the company from soliciting investments without the proper license.

An earlier CDO in February was issued against KAPA, after substantial evidence found that the company offered and sold securities in the form of investment contracts and in the guise of donations, even without the license to do so.

“The said cease and desist order was eventually made permanent and is in full force and effect up to the present,” the SEC said Monday. —Jon Viktor Cabuenas/VDS, GMA News