SEC asks CA to lift TRO on insider trading vs Ongpin
The Securities and Exchange Commission (SEC) has asked the Court of Appeals (CA) to lift the order that prevents the agency from penalizing the embattled former trade minister Roberto V. Ongpin for committing insider trading at the Philippine Stock Exchange in 2009.
“We have the hearing schedule I think on August 23 for the prayer for writ of preliminary injunction. We are opposing the issuance of writ of preliminary injunction and we are also asking for the lifting of TRO [Temporary Restraining Order],” SEC Chairperson Teresita Herbosa said in an interview.
Herbosa was referring to the petition filed by Ongpin against the SEC’s decision to slap the businessman a R174-million fine for insider trading. The penalty includes preventing Ongpin from being part of any publicly-listed company.
To recall, Herbosa said that, while the SEC will abide by the TRO, she believes the Court of Appeals’ (CA) issuance of TRO does not satisfy the stringent requisites for the issuance of the extraordinary writ.
She pointed out that under the Securities Regulation Code, the SEC is mandated to “minimize, if not totally eliminate, insider trading and other fraudulent or manipulative devices and practices.” A litigation lawyer herself, Herbosa stressed that what should have been considered by the CA was the paramount importance of preserving the integrity of the capital markets.
She also pointed out that Ongpin’s appeal refers to the administrative aspect of the insider trading case only and is separate and distinct from the criminal action which the SEC may file before the Department of Justice.
Amid this issue, Ongpin has recently been highlighted by President Rodrigo Duterte as an example of an oligarch who has undue influence on the government.
Not long after such pronouncement was made, Ongpin-led PhilWeb Corporation ceased operations after its contract with Philippine Amusement and Gaming Corp. (Pagcor) expired. Believing that Pagcor’s decision not to extend the license of the company was influenced by what the President thinks of him, Ongpin then announced that he will just exit PhilWeb and sell all his shares in a last-ditch effort to save the listed firm.
After that, Ongpin initiated a bidding process for his shares but eventually cancelled it to instead donate these shares to Pagcor. He said the worth of his ownership in the company stood around R20 billion.
Pagcor on Thursday rejected the donation and refused to renew PhilWeb’s license to provide e-Gaming equipment.
As a respond, Ongpin made another plea, insisting the government to accept the donation and use them for the establishment of drug rehabilitation centers. (MBM)