Bill seeks to empower SEC to probe NGOs

A bill seeking to grant the Securities and Exchange Commission (SEC) the authority to monitor and investigate non - governmental organizations, foundations and similar institutions has been endorsed for plenary approval.

The House Committee on Banks and Final Intermediaries, chaired by Batangas Rep. Nelson P. Collantes recommended the approval of House Bill 5779, which substitutes House Bill 4449, principally authored by Laguna Rep. Joaquin M. Chipeco Jr. “The bill seeks to prevent abuses and malpractices committed by some non-governmental organizations by including them, as well as foundations and other similar institutions, under the monitoring and investigative powers of the SEC,” Collantes said in pushing for the final passage of the measure.

HB 5779 grants authority to the SEC to monitor and investigate NGOs, foundations and similar institutions when there exists probable cause that these organizations are committing or attempting or conspiring to commit, or participating in or facilitating an act in violation of existing laws, rules and regulations.

Under the measure, the SEC is empowered to summon witnesses, issue subpoenae duces tecum, administer oaths and take testimony or evidence relevant to the investigation.

Assistance from gov’t agencies Chipeco said the SEC may enlist the assistance of any branch, department, bureau, office, agency or instrumentality of the government, including government - owned or controlled corporations, in undertaking its monitoring and investigative functions, which may include the use of its personnel, facilities and resources.

HB 5779 also “directs the SEC to furnish the appropriate law enforcement agencies with the official results of its investigations,” he said.

The bill also provides that in the exercise of its investigatory powers, the SEC shall ensure that its monitoring activities shall cover all or substantially all active NGOs, foundations and similar organizations.

“It will equip SEC with sufficient information technology to, among others, trigger alerts regarding irregular activities of NGOs and other similar institutions from the moment they file their applications for registration with the Commission,” Chipeco said.

Periodic review He said one of the key provisions of the proposed Act is mandatory periodic review of SEC budgetary requirement “to upgrade its personal services and institutionalizing computer - assisted monitoring and review of activities of all active NGOs, foundations and institutions.

“The bill seeks to remedy the acute lack of resources of the SEC by mandating them to conduct periodic review of budgetary requirements to effectively implement the provisions of this law,” he said.

The Commission shall submit this budget proposal for immediate consideration in the next budget cycle, according to HB 5779.

The measure provides that the amount necessary for the implementation of the proposed Act shall be included in the annual General Appropriations Act.