The Securities and Exchange Commission (SEC) has taken decisive action against Bagong Bansang Maharlika (BBM) International Inc. (BBMII) by revoking its Certificate of Registration. The move comes in response to the corporation's violations of the Revised Corporation Code of the Philippines (R.A. 11232), specifically Section 6 i (2) of Presidential Decree No. 902-A. The violations were related to serious misrepresentation, causing great prejudice or damage to the general public.
Reports received by the Commission revealed that BBMII was actively collecting membership fees from local communities, enticing individuals with promises of food security, free education, free hospitalization, cash assistance, and livelihood opportunities.
Despite being duly registered, BBMII was cautioned through an advisory dated August 28, 2023. The advisory clarified that the corporation's registration conferred juridical personality but did not grant authorization for specific activities. Notably, BBMII was warned against operating as a Social Welfare Development Agency (SWDA) without the required permit/license from the Department of Social Welfare and Development.
Adding to the gravity of the situation, BBMII was found to have used the President's image in its identification cards, tarpaulins, and other materials with the clear intent to mislead the public. This deceptive practice aimed to create the impression that the corporation's activities were legitimate and had the endorsement of the President or the Marcos administration.
The SEC also raised concerns about BBMII's financial viability, pointing out that it operated as a non-stock, non-profit corporation with limited capital and no discernible income sources. The corporation failed to demonstrate receipt of donations or bequests to finance its promises, and its initial capital contribution, as stated in its Articles of Incorporation, amounted to a mere Php 35,000.00. The revocation of BBMII's Certificate of Registration serves as a stern warning against fraudulent practices that could harm the public.
Despite being duly registered, BBMII was cautioned through an advisory dated August 28, 2023. The advisory clarified that the corporation's registration conferred juridical personality but did not grant authorization for specific activities. Notably, BBMII was warned against operating as a Social Welfare Development Agency (SWDA) without the required permit/license from the Department of Social Welfare and Development.
Adding to the gravity of the situation, BBMII was found to have used the President's image in its identification cards, tarpaulins, and other materials with the clear intent to mislead the public. This deceptive practice aimed to create the impression that the corporation's activities were legitimate and had the endorsement of the President or the Marcos administration.
The SEC also raised concerns about BBMII's financial viability, pointing out that it operated as a non-stock, non-profit corporation with limited capital and no discernible income sources. The corporation failed to demonstrate receipt of donations or bequests to finance its promises, and its initial capital contribution, as stated in its Articles of Incorporation, amounted to a mere Php 35,000.00. The revocation of BBMII's Certificate of Registration serves as a stern warning against fraudulent practices that could harm the public.
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