Maria Ressa, chief executive of news website Rappler, Inc. was arraigned at a Pasig trial court for one of her five tax-related charges.

She was accused of failing to supply correct information over deficiency value-added tax for the second quarter of 2015 worth almost P300,000.

The charge sheet had been amended to include the company Rappler, Ms. Ressa said in a social media post. Ms. Ressa, a former CNN investigative reporter, also faces three tax evasion charges at the Court of Tax Appeals.

She and former Rappler researcher Reynaldo Santos, Jr. were convicted of cyber-libel by a Manila judge last month.

They were sentenced to an indeterminate imprisonment of six months to six years and were ordered to pay P400,000 in moral and exemplary damages to the businessman who sued them. They

have appealed their conviction. 鈥� Vann Marlo M. Villegas

In a 132-page motion, Rappler Chief Executive Officer Maria A. Ressa and former researcher Reynaldo Santos, Jr. said the court had erred when it held that cyber-libel had a time limit of 12 years within which a suit may be filed.

鈥淐yberlibel is not a new offense鈥� but is just a different means to committing libel, they said, citing jurisprudence.

The two were sentenced to an indeterminate imprisonment of six months to six years. Rappler as a company was cleared. They were also ordered to jointly pay businessman Wilfredo D. Keng P400,000 in moral and exemplary damages.

The solicitor general during oral arguments had said the prescriptive period for the crime of libel is one year, according to the pleading.

There was no proof that the article had been republished on the news website in 2014, and there was no evidence that Ms. Ressa and Mr. Santos had participated in the republication, they said.

鈥淭here is no allegation that the act was done in collusion with each other or in conspiracy,鈥� they said. 鈥淭hus, the participation of each of the accused in the supposed republishing must be shown beyond a reasonable doubt. No evidence, let alone evidence beyond a reasonable doubt, has been presented to show this.鈥�

They also argued that the court had 鈥渆rred in taking adversely the silence鈥� of the two because they had not taken the witness stand.

鈥淭he court makes much of the decision not to present both accused-movants Santos Jr. and Ressa as witnesses during the trial,鈥� they said. 鈥淭his is surprising because there is no law or rule that compels the accused to take the stand to testify.鈥�

Ms. Ressa and Mr. Santos also questioned the court鈥檚 imposition of imprisonment rather than just fines. 鈥淲ith due respect, the penalty of imprisonment must be set aside and reconsidered,鈥� they said.

The cyber libel case was filed by Mr. Keng over a Rappler article published on May 29, 2012, months before the Cyber-crime Prevention Act was signed into law in September 2012. The story was updated in February 2014.

The article alleged that Mr. Keng had owned a vehicle used by the late Chief Justice Renato C. Corona 鈥� whom the Senate impeached on corruption charges 鈥� and that he was involved in illegal activities.

Mr. Keng filed his complaint in October 2017. The Department of Justice indicted them in January 2019.

Local and international media watchdogs and human rights groups have condemned her arrest. New York-based Committee to Protect Journalists has called on Mr. Duterte鈥檚 government 鈥渢o cease and desist this campaign of intimidation aimed at silencing Rappler.鈥�

Global media watchdog Reporters Without Borders earlier said the twin convictions showed the Philippine justice system鈥檚 鈥渓ack of independence from the Executive branch.

The sentence bears the 鈥渕alevolent mark鈥� of Mr. Duterte and his desire, by targeting Rappler, to eliminate all criticism whatever the cost, it said.

Ms. Ressa, a former CNN investigative reporter, earlier said Philippine authorities had managed to 鈥渢werk鈥� the cases against her and Rappler.

Rappler, which Mr. Duterte has called a 鈥渇ake news outlet,鈥� is also appealing last year鈥檚 order by the Securities and Exchange Commission to close its operations for violating foreign-equity restrictions in mass media. Ms. Ressa is also facing tax evasion cases.

The presidential palace has said Mr. Duterte did not have a hand in the court ruling. 鈥� Vann Marlo M. Villegas

“We hope this case is quickly resolved in a way that reinforces our long-shared commitment to freedom of expression, including for members of the press,” US Department of State spokesman Morgan Ortagus said in a statement late Tuesday.

“We are concerned by the trial court’s verdict against Maria Ressa and Reynaldo Santos,” US Department of State Spokesperson Morgan Ortagus said in a statement, late Tuesday evening.

A Philippine trial court convicted Maria Ressa, chief executive officer of news website Rappler, Inc. and former researcher Reynaldo Santos, Jr. for violating a law against cyber-libel.

Critics view the verdict, which could lead to a jail term of up to six years, as a major setback for democratic rights in the country.

In a 37-page decision, Judge Rainelda H. Estacio-Montesa also ordered them to jointly pay the businessman who sued them P400,000 in moral and exemplary damages. Rappler as a company was cleared.

Global media watchdog Reporters Without Borders on Monday said the twin convictions showed the Philippine justice system’s “lack of independence from the Executive branch.”

The US government’s remarks came after a joint statement from US Senators Edward J. Markey, Patrick Leahy, and Dick Durbin, who renewed their call for the Philippine government to drop all charges against Ms. Ressa, a former CNN investigative reporter and other local journalists.

The Justice department in February last year indicted Ms. Ressa for cyber-libel based on a complaint by a businessman over an article published in 2012, months before the cyber-crime law was passed. The journalist has said the allegations were unfounded.

A month later, she got arrested again for allegedly violating the ban on foreign ownership in media.

Rappler, which Mr. Duterte has called a “fake news outlet,” is also appealing last year’s order by the Securities and Exchange Commission to close its operations for violating foreign-equity restrictions in mass media. Ms. Ressa is also facing tax evasion cases.

The presidential palace has said Mr. Duterte did not have a hand in the court ruling.

Rappler had reported that Wilfredo Keng was the owner of a vehicle used by the late Chief Justice Renato C. Corona 鈥� whom the Senate impeached on corruption charges 鈥� and that he was involved in illegal activities.

Opposition senators have urged the public to speak out against efforts to silence critics, noting that the conviction comes after the government ordered the shutdown of critical media network ABS-CBN Corp.

Meanwhile, Senator Ralph G. Recto said the law on cyber-libel has “ambiguities and frightening consequences on our freedom,” adding that Ms. Ressa’s conviction could still be overturned on appeal.

“A nation can withstand an occasional reckless press, but it cannot survive with a repressed one,” he said in a statement on Wednesday.

Human Rights Watch has called the verdict “a devastating blow to media freedom in the Philippines.” 鈥� Charmaine A. Tadalan

THE libel conviction for the head of a Philippine news outlet known for its scrutiny of President Rodrigo Duterte鈥檚 administration is a blow to one of Asia鈥檚 most vibrant media sectors. It鈥檚 also the sort of headline that鈥檚 often overlooked by foreign executives and fund managers casting around for fast-growing economies. They would be wrong to gloss over this one.

Duterte鈥檚 rule has already seen institutions eroded and top-level opponents targeted. If fewer questions are asked, that will reduce transparency and drive up the risk premium for investing in the Philippines. That鈥檚 something the coronavirus-weakened economy can ill afford when inbound investment is already falling.

The case against Maria Ressa 鈥� whose Rappler site has been directly denounced by the president and often critical of his war on drugs 鈥� was always about more than the allegedly defamatory article on a local businessman, first published in 2012. The verdict, similarly, has ripples far beyond the online publication.

Monday鈥檚 conviction is no isolated incident. Ressa and her co-accused, Reynaldo Santos, were sentenced to as long as six years in jail, but she faces seven other criminal charges including for alleged tax evasion. There鈥檚 more. A month ago, the country鈥檚 largest broadcaster, ABS-CBN Corp., shut TV and radio stations after its license wasn鈥檛 renewed 鈥� a move repeatedly threatened by Duterte, reportedly because of a disagreement over paid election campaign commercials. Opponents elsewhere, from the human rights commission to the Supreme Court, have fared little better. Meanwhile, lawmakers passed an anti-terrorism bill this month that, while targeting a real problem, could also allow worryingly lengthy detentions without charge.

The presidential spokesman says Duterte upholds free speech and played no role in the Ressa verdict. That should offer little comfort to investors, or to a local population facing the deepest economic contraction in decades. Indeed, it suggests weakened institutions are carrying out the president鈥檚 whims without needing to be told. The target is one of the country鈥檚 best-known journalists, at home and abroad. Ressa was honored by Time in 2018. With other governments behaving badly, there is little reason to hold back.

To be clear, Duterte isn鈥檛 the first occupant of the Malaca帽ang presidential palace to castigate the press, or indeed other institutions, since the end of martial law in the 1980s. While free and outspoken by the region鈥檚 standards, the Philippines has also had high rates of violence against journalists. The difference is in what Nicole Curato of the University of Canberra describes as the normalization of attacks on the press, and the sheer volume of vitriol released through spokespeople, political allies, and on social media. Worse, it is done with the language of democracy. At least in openly authoritarian states, as Ressa said Monday, the rules are clear.

The economic context is grim. While the Philippines is young, promising and has been an outperformer in terms of headline expansion, its economy remains highly concentrated, unequal, and opaque. Foreign direct investment and local stocks were fading even before the pandemic, despite infrastructure spending plans and tax reform efforts. After the coronavirus, an economy that had been projected to expand 7% this year will instead contract. Unemployment and underemployment are high and remittances, which account for about 10% of gross domestic product, have dropped.

Ressa鈥檚 verdict brings more reasons for concern.

The first is the increasingly arbitrary nature of the attacks, in part because of the disparate coalition behind Duterte vying for favor. This leaves investors vulnerable, says Aries Arugay, professor of political science at the University of the Philippines-Diliman. Duterte triggered a more than $2 billion stock rout in December after targeting the Ayala family and another local businessman, demanding the renegotiation of contracts with two concessionaires, Manila Water Co. and Maynilad Water Services Inc., to supply the capital. Companies such as Fraport AG and Suez SA left the Philippines over just such disputes.

While the old guard is under fire, a new, Duterte-friendly oligarchy is being created, tilting an already uneven playing field. Aaron Connelly, research fellow at the International Institute of Strategic Studies, points to telecoms as an example of the change: Duterte ally Dennis Uy, with China Telecom Corp., won the country鈥檚 third telecoms license in 2018. Partner risk has always been a problem in Southeast Asia, but the shift away from Manila elites is making this less predictable.

Lastly, there鈥檚 the issue of transparency. The simple act of questioning authority, deals, and negotiations is becoming more challenging. It could get worse still if, as Arugay posits, the current purge fosters the flourishing of partisan Duterte-friendly media. The Manila Times closed in 1999 after running afoul of then-President Joseph Estrada, only to be bought by one of his close associates.

Duterte鈥檚 enduring popular support, and a term that doesn鈥檛 end until 2022, create room for plenty more lasting damage. Investors could do worse than to ponder Ressa鈥檚 words after her conviction: This is a precipice.

BLOOMBERG OPINION

A PHILIPPINE trial court convicted a journalist critical of President Rodrigo R. Duterte for cyber-libel, a verdict that could lead to six years in jail and one that critics view as a major setback for democratic rights in the country.

In a 37-page decision, Judge Rainelda H. Estacio-Montesa found Maria Ressa, chief executive officer or news website Rappler, Inc. and former researcher Reynaldo Santos, Jr. guilty of violating a law against cyber-libel.

They were sentenced to six months to six years in prison. The judge also ordered them to jointly pay the businessman who sued them P400,000 in moral and exemplary damages. Rappler as a company was cleared.

Global media watchdog Reporters Without Borders on Monday said the twin convictions showed the Philippine justice system鈥檚 鈥渓ack of independence from the Executive branch.

鈥淭his sentence bears the malevolent mark of President Duterte and his desire, by targeting Rappler and the figure of Maria Ressa, to eliminate all criticism whatever the cost,鈥� Daniel Bastard, head of the watchdog鈥檚 Asia-Pacific desk said in a statement.

鈥淭he subject article was republished with reckless disregard of whether it was false or not,鈥� the court said. 鈥淭his clearly shows actual malice.鈥�

Ms. Ressa, a former CNN investigative reporter, said Rappler would continue to be better and stronger, adding that 鈥渋nvestigative journalism must continue.鈥� 鈥淚f we fall over we are no longer democracy,鈥� she said at a briefing.

The Justice department in February last year indicted Ms. Ressa for cyber-libel based on a complaint by a businessman over an article published in 2012, months before the cyber-crime law was passed. The journalist has said the allegations were unfounded.

A month later, she got arrested again for allegedly violating the ban on foreign ownership in media.

Rappler, which Mr. Duterte has called a 鈥渇ake news outlet,鈥� is also appealing last year鈥檚 order by the Securities and Exchange Commission to close its operations for violating foreign-equity restrictions in mass media. Ms. Ressa is also facing tax evasion cases.

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The presidential palace said Mr. Duterte did not have a hand in the court ruling. His spokesman Harry L. Roque said the President has always supported press freedom.

鈥淭his is not a fight against press freedom, an institution I deeply respect and uphold,鈥� businessman Wilfredo D. Keng, who filed the lawsuit, said in an e-mailed statement. 鈥淔or years, I have personally suffered from Rappler鈥檚 false accusations against me, which have no place in a responsible and free press.鈥�

Rappler had reported that Mr. Keng was the owner of a vehicle used by the late Chief Justice Renato C. Corona 鈥� whom the Senate impeached on corruption charges 鈥� and that he was involved in illegal activities.

Senators urged the public to speak out against efforts to silence critics, noting that the conviction comes after the government ordered the shutdown of critical media network ABS-CBN Corp.

鈥淯nder the current political atmosphere of repression and authoritarianism, it would have been a surprise if Maria and Reynaldo were acquitted,鈥� opposition Senator Francis N. Pangilinan said in a statement.

鈥淭he silencing of critics and the attacks on the media have been going on for three years now,鈥� he added.

Vice President Maria Leonor G. Robredo said the verdict was meant to silence those critical of the government. Opposition Senator Risa N. Hontiveros called it a threat to democracy.

Human Rights Watch called the verdict 鈥渁 devastating blow to media freedom in the Philippines.鈥�

The verdict stemmed from one of several cases that the government of Mr. Duterte had instigated to stifle Rappler鈥檚 critical reporting on the government, particularly its 鈥渕urderous war on drugs鈥� that has killed tens of thousands of people since July 2016, it said.

鈥淭he verdict against Maria Ressa highlights the ability of the Philippines鈥� abusive leader to manipulate the laws to go after critical, well-respected media voices whatever the ultimate cost to the country,鈥� said Phil Robertson, deputy Asia director at Human Rights Watch.

鈥淭he Rappler case will reverberate not just in the Philippines, but in many countries that long considered the country a robust environment for media freedom,鈥� he added.

鈥淭he trial court decision does have a chilling effect not just on freedom of the press but also on freedom of expression,鈥� Maria Ela L. Atienza, a political science professor at the University of the Philippines-Diliman said in an e-mailed reply to questions.

鈥淚t can also be interpreted as a possible overreach of the law given its retroactive application and the wide net it casts on the cyber nature of a publication,鈥� she said.

A US LAW firm has offered free lobby services to Maria Ressa, who heads Rappler, Inc. 鈥� a news website critical of President Rodrigo R. Duterte 鈥� to “build awareness and concern” about her criminal cases in the Philippines, according to twin filings in both Houses of the US Congress.

Lobbying disclosure reports show that Ms. Ressa, who is out on bail for a cyber-libel case, is using Covington & Burling partners Peter Lichtenbaum and Kurt Wimmer to act as her lobbyists in the US.

Her criminal cases should matter to the US because there is a “global erosion of freedom that is guaranteed in any democracy around the world,” the Filipino journalist yesterday said by telephone.

“It starts with the weaponization of the social media. When a journalist is under attack, democracy is under attack,” she said.

The Justice department in February indicted Ms. Ressa for cyber-libel based on a complaint by a businessman over an article published in 2012, months before the cyber-crime law was passed. The journalist has said the allegations were unfounded.

A month later, she got arrested again for allegedly violating the ban on foreign ownership in media.

Local and international media watchdogs and human rights groups have condemned her arrest. New York-based Committee to Protect Journalists has called on Mr. Duterte’s government “to cease and desist this campaign of intimidation aimed at silencing Rappler.”

Ms. Ressa, a former CNN investigative reporter, said Philippine authorities have managed to “twerk” the cases against her and Rappler. “So I am making sure that I am using all of the available options to us.”

Ms. Ressa, who is also facing tax evasion cases, said “lobbying is a legal and transparent practice in the United States.” “Yes they may lobby, but the main reason why Covington is working for Rappler is to protect our rights,” she said.

Lobbying is a highly regulated practice in the US, which requires the disclosure of activities seeking to influence the federal government.

Maria Ela L. Atienza, a political science professor from the University of the Philippines, noted that while Mr. Duterte and US President Donald Trump seem to like each other, this does not influence both countries’ foreign policies.

“Besides, there are a number of republicans in the US Senate who are also reluctant to support the Philippines under Duterte,” she added.

“Maria Ressa does have high-profile organizations and personalities as allies or supporters outside the country,” Ms. Atienza said. “They can lobby their governments to exert pressure on the Philippine government in terms of economic aid and military assistance.”

Ms. Ressa said the Covington partners will look at the news website’s options under international law. The US law firm is doing the lobbying work for free, the journalist said, adding that Mr. Lichtenbaum is a former classmate.

CNBC first reported that Ms. Ressa had hired the law firm “to take on President Duterte.”

Rappler, which Mr. Duterte has called a “fake news outlet,” is also appealing last year’s order by the Securities and Exchange Commission to close its operations for violating foreign-equity restrictions in mass media.

The Supreme Court last month ordered the government to comment on the petition by Rappler, which was banned from covering Mr. Duterte.

In a notice dated July 30, the court gave the Office of the President, Office of the Executive Secretary, Presidential Communications Operations Office, Media Accreditation Registration Office and Presidential Security Group 10 days to submit the pleading.

The ban stays in the absence of a court injunction.

In a nine-page order denying the Motion to Quash, Judge Rainelda H. Estacio-Montesa of Branch 46 stated that the elements of libel which include allegations of discreditable act, publication of the charge, identity of the person defamed, and existence of malice were present in the information filed against the court.

“Considering that all the essential elements of the offense as defined under RA (Republic Act) 10175 (Cybercrime Prevention Act of 2012) were sufficiently established in the Information, the allegations contained therein, indeed, constitute an offense,” the order read.

The case stemmed from the complaint filed by businessman Wilfredo D. Keng in October 2017 over an article Rappler published on May 29, 2012, which he said was updated in February 2014, titled “CJ Using SUVs of Controversial Businessman,” which reported that Mr. Keng, the alleged owner of the vehicle used by former Chief Justice Renato C. Corona, is involved in various illegal activities.

The Department of Justice (DoJ) indicted them of cyber-libel in January 2019 while the information was filed to the court the next month.

The court also denied the argument of Rappler that the prosecution retroactively applied the said law while a temporary restraining order (TRO) was issued by the Supreme Court on its implementation from Oct. 9, 2012 until April 22, 2014.

The court said the TRO “merely suspends the implementation and enforcement of RA 10175,” so crimes committed during the period cannot be prosecuted, but it did not suspend the effectivity of the law.

“So while crimes committed during the said period cannot be prosecuted during the effectivity of the TRO, they may be prosecuted after the lifting of the same just like what is done in this case,” the court said.

The court also upheld the DoJ’s claim that the prescriptive period for the filing of the cyber-libel case is 12 years, as the sentence for cyber-libel is until eight years of imprisonment, contrary to the argument of Rappler that the prescriptive period for the case should be one year, similar to ordinary libel.

It also said that Rappler, Inc. has corporate liability in the case as it published the article on Mr. Keng.

“The re-publishing of the article is the illegal act imputed to Rappler Inc., as the publishing platform of the article, which accusation as supported by the prosecutor’s resolution and attached documents the court finds probable cause to proceed with the trial of the case,” it said. 鈥� Vann Marlo M. Villegas

鈥�(T)heir country has enough problems and they should focus on them,鈥� Mr. Panelo said.

The spokesman also clarified President Rodrigo R. Duterte鈥檚 threat to declare a revolutionary war, saying it was just 鈥渁n expression of frustration.鈥�

鈥淭he threat, if it is a threat, is not against the people but precisely against their enemies, the criminals, the people manning the illegal drug industry, the corrupt bureaucrats, the greedy politicians, the communist rebels, foreign and local terrorists, and other enemies of the state,鈥� he said. 鈥� Arjay L. Balinbin

Ms. Ressa was arraigned over charges against her and Rappler Holdings Corporation of three counts of violation of Section 255 of the Tax Code or “willful failure to supply correct and accurate information in tax returns.” This is in connection with their alleged underdeclared income tax return in 2015 amounting to P162 million and value-added tax liability for the third and fourth quarters of the same year worth P8 million each, exclusive of charges and interests.

Eric R. Recalde, Ms. Ressa’s counsel, told reporters after the arraignment that they are “confident” they will get a “fair trial.”

For her part, Ms. Ressa said, “The presiding judge was very professional on all sides, so happy with this in that sense…I’m hoping for justice.”

“We did nothing wrong and I’m very proud of Rappler with what we have accomplished so I hope, given today , if everything goes through, we now have court dates all the way through, it’s under expedited court . So I hope it’s resolved sooner rather than later.”

Ms. Ressa maintained these cases against her and Rappler are “politically motivated.”

“(W)e will fight every single one and hope for the integrity of the men and women who will handle these cases and that they go as well as today,” she said.

A fifth count on tax-related charges was filed before the Pasig City regional trial court (RTC) over Rappler’s alleged VAT liability for the second quarter of 2015 worth P294,258.58.

Ms. Ressa was arrested on Feb. 13 for cyber-libel but posted bail the next day. She was arrested a second time and again posted bail on March 29 for allegedly violating the Anti-Dummy Law, in connection with Philippine Depositary Receipts worth $1.5 million from Omidyar Network, since donated to Rappler staff. 鈥� Vann Marlo M. Villegas