SSS execs’ dishonest profits
Social Security System (SSS) executives involved in the stock trading mess should be compelled to disgorge all the personal profits they irregularly netted from valuable tips and concessions they obtained from the pension fund’s accredited stockbrokers.
This is the right thing to do – for them to be constrained to empty out their pockets of their dishonest earnings. Those profits rightfully belong to and should go to the SSS.
When a trustee engages in self-dealing, that trustee commits a serious violation of the fiduciary relationship with the fund owner or the principal.
It is a grave ethical breach for a trustee to take advantage of his or her position to make money for himself or herself.
In fact, in other jurisdictions, pension fund trustees who do not voluntarily disgorge their earnings from self-dealing immediately sued for the recovery of both the wrongful profits they earned and the principal’s lost profits.
The SSS has been hit by a scandal after senior executives overseeing the pension fund’s stock investments were found gainfully trading for themselves based on tips and other benefits, including lucrative initial public offering (IPO) share allocations, they obtained from accredited brokers.
We support Social Security Commissioner Jose Gabriel La Viña’s strong views on this matter. There should be no pussyfooting here. Heads must roll where they should.
La Viña said the erring executives availed of valuable information and IPO share allotments for themselves, instead of allowing their principal – the SSS – to take advantage of the tips and shares.
La Viña filed the administrative complaint for “serious dishonesty and grave misconduct” against the four SSS executives implicated in the stock trading mess.
Named respondents in the complaint were SSS executive vice president Rizaldy Capulong; senior vice president and chief actuary George Ongkeko Jr.; vice president Reginald Candelaria, OIC of equities investment division/capital markets group; and Ernesto Francisco Jr., equities product development head.
Ongkeko and Francisco have since resigned their posts, although acceptance of Ongkeko’s resignation has been deferred until yearend pending his completion of certain tasks.
Meanwhile, the SSS should use accredited stockbrokers to buy and sell stocks for the pension fund’s portfolio, and rely less on them for investment advice.
And to prevent a conflict of interest and a repeat of the stock trading mess, the officers and staff of the SSS’s equities division, as well as their immediate superiors and family members, should henceforth be absolutely barred from investing in stocks.--