The Securities and Exchange Commission (SEC) has revoked the corporate registration of Bagong Bansang Maharlika (BBM) International Inc. for using President Ferdinand R. Marcos Jr.'s name to lure members while operating as a non-government organization (NGO) without the necessary licenses.
Marcos is popularly known by his nickname "Bongbong" and the initials "BBM".
In an order, the SEC Enforcement and Investor Protection Department (EIPD) found that BBM International has violated Section 44 of the Revised Corporation Code (RCC).
This law provides that no corporation shall possess or exercise corporate powers other than those conferred by the RCC or by its articles of incorporation (AOI).
BBM International was found to have been collecting membership fees from residents of various local communities, promising to provide food security, free education, free hospitalization, cash assistance, and livelihood to all Filipinos aged one year and above worldwide.
While BBM International is a duly registered corporation with the SEC, activities such as coordinating welfare programs and collecting investments require secondary licenses from the appropriate government agencies.
BBM International is only allowed to exercise powers inherent to its existence as provided in the RCC and those conferred in its AOI. Dealings which are irrelevant to the purposes mentioned in its AOI are considered unauthorized.
Activities conducted by BBM International show that it should register and secure a license from the Department of Social Welfare and Development (DSWD) under the department’s relevant guidelines, according to the EIPD.
“These activities were clearly ultra vires acts or acts beyond the corporation's authority. Evidently, [BBM International]’s SEC registration was obtained only for the purpose of giving a semblance of legitimacy to the corporation and that the corporation’s activities were sanctioned by the government,” the order read.
Further, BBM International has been found to be using Marcos' image as part of its marketing materials, creating a false impression that its programs are legitimate and sanctioned by the current administration.
“Worse, the use of the President’s picture in the identification cards, tarpaulins and other materials and paraphernalia of [BBM International] was done with palpable intent to mislead and deceive the public that the activities undertaken by the corporation are legitimate and are sanctioned by or with the imprimatur of the President or the Marcos administration,” said the order.
The company has also failed to submit its Mandatory Disclosure Form, which it was required to submit under SEC Memorandum Circular No. 25, Series of 2019. Failure to comply with this requirement is a cause for revocation of the non- compliant company’s certificate of incorporation.
The SEC issued an advisory against BBM International as early as Aug. 28 this year, warning the investing public to exercise caution when dealing with BBM International.
“Wherefore, for violation of Section 44 of the Revised Corporation Code of the Philippines in relation to PD 902-A and Section 179 (j) of the RCC, the Certificate of Incorporation and the registration of Bagong Bansang Maharlika (BBM) International Inc. as a corporation, is hereby revoked,” the order read.