The Supreme Court has been asked to stop the government’s crackdown on Kapa Community Ministry International Inc. and its bid to shut down its operations.
Rhema International Livelihood Foundation Inc. sought the issuance of a status quo ante order against the order of the Securities and Exchange Commission in April that revoked Kapa’s registration as a non-stock corporation.
Rhema, which brands itself as a “donor” of Kapa, also asked the high court to allow “Kapa to resume its religious activity” and “expunge Cirfund from the list of the unregistered investment entities as it is an online platform of Rhema International Livelihood Foundation Inc. and further declare that [Cirfund] is backed by hard documents that support the legality of its business act and deeds.”
The company also sought P3 billion in compensation from the respondents led by President Rodrigo Duterte and SEC Chairman Emilio Aquino “for destroying Cirfund.”
Rhema also sought the impeachment of President Duterte even if the high court is not the proper venue for it.
The petitioner claims that its constitutional right to due process was violated by the respondents when they “railroaded the process of law, making it a summary procedure when it was supposed to be in a full-blown trial.”
The petitioner accused the SEC of committing grave abuse of discretion in issuing its advisory on May 31 that tagged the company as among the “unregistered investment entities” because of its investment program Cirfund.
Rhema said it was a licensed foundation accredited with the Department of Social Welfare and Development and local government units in Metro Manila and Rizal and that Cirfund was its special project.
“Petitioners [who] are members of Rhema Foundation or Cirfund were able to donate for the Kapa Ministry, being a religious organization, because we believe in the word of God that Our God Jehovah will bless us and that He will open the windows of heaven to pour out blessings until there is no room for it. We believe that the more we give, the more we are blessed,” the petition says.
Last week, the SEC filed charges of violation of Republic Act 8799 against Kapa, its founder and president Pastor Joel Apolinario, trustee Margie Danao, corporate secretary Reyna Apolinario and officers Marisol Diaz, Adelfa Fernandico, Moises Mopia, Catherine Evangelista and Rene Catubigan over their alleged large-scale investment scam.
The SEC said its investigation showed that Kapa and its officers enticed the public to “donate” at least P10,000 in exchange for a 30-percent monthly “blessing” or “love gift” for life, without having to do anything other than invest and wait for the payout.
The investment scheme operated by the respondents involved the sale and offering for sale or distribution to the public of securities in the form of investment contracts.
Aquino said Kapa “amassed wealth through an investment scam in the guise of religion and at the expense of the investing public.”
The SEC said it had issued an advisory against Kapa’s operations as early as March 2017, as well as a cease-and-desist order in February and an order of revocation of the non-stock corporation’s registration in April.
The commission, through the Anti-Money Laundering Council, also obtained a freeze order from the Court of Appeals on June 4 to preserve some P100 million in assets linked to Kapa.
Based on an investigation conducted by the SEC, KAPA and its officers had at least nine luxury cars and sport utility vehicles and a helicopter.
The group also claimed to have acquired a hospital, a school and other properties.
The SEC said it would name more respondents as it identified other people who had participated in the unlawful public offering and/or selling of securities by KAPA.
It also called on victims of Kapa to file charges against the group.
