Inside Philippine politics & beyond

SEC Chair wants power to kill fraudulent firms & jail erring officers

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By Raïssa Robles

On the day I gave my testimony before the Senate Blue Ribbon sub-committee my seat mate during the hearing was a very pleasant but tough-talking lady: Security and Exchange Commissions Chair Teresita Herbosa.

During the hearing, we exchanged reactions to what we were hearing from the other “resource persons” who had been summoned like us to testify that day, October 30.

Chairwoman Herbosa told me she came to submit a stack of documents which were requested by the sub-committee, including financial records of the various companies that businessman Antonio Tiu had mentioned as having to do with what many people now refer to as “Hacienda binay”.

Realizing that it’s not everyday a journalist gets to sit beside the Chair of the SEC  – a vital agency in regulating corporations – I decided to interview Chairperson Herbosa during one of the breaks.

I asked her if, in the light of the ongoing probe, the present Corporation Code could deal with fraudulent activities of corporations and their officers and owners.

Here’s what the SEC Chair said. (Pardon the video. The fluorescent lighting in the Senate session hall skewed the light meter on my phone):

Comments

  1. ang bansa ba natin ay binubuo ng mga inutil na ahensya na pakinabang lang ang puntirya?

  2. @CPMers, Tiu’s connection is global and needs sleuths who are master in piercing the corporate veils so as to unmask his operation.

    • Antonio Tiu has converted Agrinurture and Greenergy into holding companies of his investments. The best way to get back to Tui is to hit him where it hurts most – his pocketbook. And the best way to do this is to the netizens to continue associating Agrinurture and Greenery with Tiu and Binay so that current and future investors in these companies will know what they are getting into. So far, his net worth was down about P1 billion when the stocks price of his holding companies tanked.

      Let this send a strong message to businesses that if they associate themselves with Binay they will suffer the consequence – think about Manila Times and Hillmarc.

      During the Corona impeachment trial many big name lawyers took a gamble on Corona by providing help in his defense pro bono in the expectation that they will gain judicial access with Corona, in return, if he survived the impeachment. He did not.

      Those who are putting their bets on Binay should think twice now because Binay will fail in his bid to win the presidency.

      • The coming Philippine presidential election will represent a proxy fight between the U.S. and China to assert their influence and super-power status in the Asia-Pacific region. And many people already know whose side Binay is with.

      • I doubt Binay will fail on his bid to win the presidency, unless he is imprisoned before the election.

        Think about this, Erap, has been found guilty and was just pardoned, so it was proven in court that he was guilty, that is undeniable, and yet, if it hadn’t been for the immense popularity of Pnoy last 2010 election. Erap could have been president again.

        So I think the supporters of Binay will still vote for him regardless of the weight of the evidence against him, and nothing, besides imprisonment, will stop him from becoming the next president.

        Now, if he does indeed ends up in prison, who do you think will be the opposition’s standard bearer? IMO, it would have to be Erap, and we all know, that he’s going to win if that happens, unless the Supreme Court finally release a favorable for us decision on whether, Erap’s pardon gave bacl Erap’s right to run.

        Pray that somehow, Roxas, does something heroic in the next couple of years.

        • Agree. Hardcore/diehard followers/ loyalists, who are blind of binaygate and cannot be swayed, are just too many.

        • With due respect, I beg to disagree that billionaire kuno Jojo is a shoo-in in 2016 despite an avalanche of evidence pointing to ill-gotten wealth.

          PInoys in general abhor corrupt officials. An example is the gma presidential candidate in 2010 elections, Gibo Teodoro, who got only 11.5% good for 4th place. Gibo is a technocrat and not corrupt but despite the full-backing of govt machinery, gma’s notoriety became his achiless heel.

          In the most recent popularity surveys when the senate probe was just starting and has not touched yet on his hacienda, his ratings plummet from 41% to 31% while Mar’s more than doubled from 7% to 13%.

          Now that his Rosario’s secret has been blown into pieces – I wonder how he’ll fare in the next surveys even with the help of the CBCP?

        • @Kalahari, I truly hope that you’re correct and am completely wrong. Kawawa naman kasi ang Pilipinas nating mahal.

        • @ Allan,

          Binay will lose in his Presidential Bid come 2016 because of his blatant refusal to attend the senate hearing which is necessary to clear his tainted name, matibay mga ebidensiya at napakaraming mga testigo saka kong wala kang itinatago o ginawang mali ay wala ka dapat katakutan bagkus sisikat kapa at libre media exposure pa… Sa media ang lakas nang loob magsalita nang Politika lang yan at hindi totoo mga yan at gumagastos nang malaking Pera para pagtakpan mga kamalian.

          Matalino na mga Botante ngayon at nalantad na ang mga Anomalyang noon pa man ay balitang balita na kaso ang media ay Bingi, Pepe at Bulag ganoon din ang mga religious groups, saka napakabagal nang processo sa Korte at kong minsan NAGKAKASUNDO/NABABAYARAN nang malaking HALAGA…

          NO TO POLITICAL DYNASTIES
          NO TO BINAY
          NO TO UNA

          YES TO F.O.I.
          YES TO ANTI-DUMMY LAW

        • there’s winning, which he as a good chance of, and there’s staying in office, which would still generally depend on the people. an impeachment court and/or another EDSA revolution perhaps?

          this of course, will depend on what becomes of the Government if Binay wins. To be honest, it is not the corruption that will happen when he wins. We’ve uncovered the connection of Binay to Tiu but very few pay attention to Binay’s connection to the communists, socialists, and leftists.

          Think about it. Right now he doesnt seem to be interested in defending his wealth. He is defending his access to power.

        • Because even if all his known money & properties are confiscated now. He can easily get/recover and double/triple it if he becomes president.

          But it is known fact that a candidate needs enormous fund to run a campaign, so how can binay finance his campaign if he losses all his money?

        • . . . [email protected]

          VP Binay could be found guilt and removed from OFFICE before the May 2016 elections in an IMPEACHMENT TRIAL by the Senate.

          What happens to his candidacy? His COC is legally DEEMED null and void. Cancelled by the COMELEC body.

          The WATER FALLS rushes in.

          hehehe

  4. My next post will be about my personal experience and observations during my presence at the Senate Blue Ribbon subcommittee hearing.

    Abangan.

    • Is that Raissa interviewing The SEC Chair ? Its sounds like a lady in her 20’s !!

    • I hope you go to the debate as well. Your interview should be brought up by Trillanes since it really is a smoking gun, one of the strongest of the many evidences that Binay owns the property. Maybe there you’ll get to meet Jonvic so he can “teach” you how to be a journalist.

      The SBRC really should give you a front row seat to all the hearings. We’d like to hear your take on each event especially behind the scenes perspectives like this SEC interview.

  5. Sounds like it is about time for another episode of the new soap “Our Place In Batangas” featuring Tony complete with big tears, sobs and snotty nose.

  6. There is no doubt that the tepid, if not insulting statement to investors and the public on ANI and Green Energy by the PSE that they are “monitoring” the Senate hearings demonstrates that this factional old boys club has forgotten the public outcry and suspension of the PSE back in 2000 due to the BW scandal. Only difference this time it’s the Vice President not the President involved.

    The PSE is the proximate body that could open up ANI and Green Energy immediately to forensic ownership and accounting scrutiny. That even the non expert public can see so many anomalous aspects in the reporting information and lack of it, reinforces the perception of impropriety

    Yes they are a Self Regulating Organization (now a corporation) but still operates under the powers granted to it by the SEC (from statutes etc.) As the PSE is not acting (wonder whose influencing that),.the SEC can invoke a range of civil and criminal actions both to the PSE and their erring listed companies, Some actions they can effect themselves and others through other Government departments and agencies, especially the DOJ.

    There must be action now and the SEC Commissioner seems to be prepared to initiate something but she needs support so the DAR, PSE, BSP, AMLAC, BIR, DOJ, NBI etc need to act now too.

    The Tiu claims of ANI and Green Energy along with those of his Corporate Secretary Atty Subido (do I detect possible disbarment proceedings in the offering?) and their PSE filings are established.

    Tiu will likely do a runner so some case must be filed and a hold departure issued.

    The investment records of Black River must obtained and the real circumstances of why a company such as this Cargill subsidiary would make an investment in ANI. It just doesn’t stack up unless they were really dealing with the VP on the basis of future promises even if it was the VP’s money essentially lending to himself as a money laundering

    Only the BSP/AMLAC have a chance of establishing the BVI companies owner(s).

    It would be helpful to know which US Attorneys Subido law office uses in Australia and the USA. Don’t forget James Tiu is in Queensland (I seem to recall Brisbane being mentioned). He is supposedly working for ANI but he might be burying some assets for Binay. The Australian Stock Exchange listing (probably on the “second board” is still a very, very puzzling listing and maybe that’s why the PSE is so quiet as they may well have been an instrumental party in the listing support
    .
    There is just so much to the web that it would take almost decades to establish and Tiu is only a recent dummy.

    However much of Binay’s current support would evaporate overnight and witnesses would come out and cases filed that would topple the whole rotten empire if only the Aquino sisters would break their silence and come out and openly support their brother who must be mightily pissed off that they don’t. Why, you should ask!?

  7. SEC? For a small investor like me, its Just a collector of whatever Financial Statements and Corporate disclosures registered companies choose to submit. Submissions are often late and Could be trash, But better than nothing. Me disclaimer naman. heh, heh.
    Sana nga, it could do more. Ang direksyon, para yung pera ng unsuspecting investors hindi ma scam. heh, heh.

  8. Very good news, Raissa. Freedom of Information is not just a bill, it is a concept. The concept says we manage our affairs better if we are informed. That holds for shareholders and voters and the press. It should also hold for investigators, of which there are a myriad . . . COA, SEC, DOJ, Onbudsman, NBI, BIR. The next wall to fall should be bank secrecy laws put in place to protect crooks. We will know the balance of power in the legislature has gone from crooks to upstanding people when a law emerges that allows investigators to take the banking information provided by Mercado to a judge and say “we have evidence to show likely fraud and we need a warrant to get bank transaction records from these and related accounts.”

  9. If a publicly listed corporation is losing money and has negative retained earnings, should not the SEC have regulations requiring detailed disclosure, much less, preventing the company from loaning huge amounts of cash to its CEO and majority stockholder? This happened to Agrinatural, Inc. in 2013 and it seems like the CEO is running AN like a sarisari store and dipping into its corporate till because of poor regulation and lack of enforcement.

        • Antonio Tiu acted like a one man “lost command” of ANI, at times making public pronouncements involving the company without the prior knowledge of the Board causing the PSE to seek clarifications from ANI.

          With the huge infusion of investment by Black River, a subsidiary of Cargill, which acquired three seats to the Board of Directors of ANI, and the separation of the positions of President and Chief Executive Officer, I think Tiu will be reigned in, if not ousted in the future. I think Black River will institute some needed corporate reforms in ANI to protect Cargill’s reputation with the investment world.

          The problem as I see it is the lack of implementing laws, and the lack of will by both the SEC and PSE to implement vigorously our existing laws, that will clean up and improve the investment climate in the Philippines.

          In the last 15 years I have been trading in stocks for my personal investment and I must admit that lately I was tempted to buy into ANI stocks as a speculative investment. With a 52-week high of P5.98 and a low of P2.02 – a price in the low P2 per share will be a good entry point, hoping that Cargill, through Black River, will indeed institute some badly needed corporate reforms in ANI. But what is preventing me from doing this is the absence of transparency in the Philippine stock market, the lack of laws protecting small investors, and the lack of liquidity in thinly traded stocks like ANI. In the U.S. stock market, AGNRF, the ticker symbol of Agrinurture in the NASDAQ stock exchange, has absolutely zero trading activity.

        • Yep. I don’t invest in stocks here for the same reason. Shareholder management of companies is non-existent as the main holders run things as they want, too often jerking around the little investors. I don’t think the big family owners are up to letting go of control so that shareholders are empowered.

        • If anything, Tiu’s control of the ANI board and of the company itself is growing stronger and not weaker. In May 2013, ANI’s bylaws were changed reducing the BoD from 11 members to 9. This was done by lowering the number of independent directors from 3 to 2 and Black River directors from 3 to 2. Black River with its one third ANI ownership has had little influence on correcting poor controls, sketchy financial reporting policies,and anomalous corporate practices in the past and its hard to expect anything different with less board representation. Clearly there is now an even more urgent need for the SEC to investigate ANI and its affiliate Greenergy in order to protect the investing public.

        • That was before the scandal involving Tiu and Binay exploded during the Senate Blue Ribbon Sub-committee hearings, and before the stocks of both Agrinurture and Greenergy tanked in the aftermatch of the Senate hearings. The loyalty of the Board to their investments or their pocketbooks precedes their loyalty to Tiu.

        • Lets just hope you are right for the sake of the small ANI investor and the battle against the dark forces. I will say no more about this but for that to happen would be very strange given what has just been said about that Board, how they make their money, and who the chief legal and financial officers are. Still Christmas might come early this year :)

  10. In previous postings, file charges against Tiu in foreign STOCK EXCHANGE AND SEC, US and Singapore. That is the only way to guarantee his conviction and incarceration.

    Philippine SEC could gather implicating documents.
    our agencies don’t have teeth to punish the guilty because they were crafted by corrupt congress protecting them and theirs before enacting laws granting powers to the agencies.

    even if Tiu is not present during Trial his companies would be punished to the point he could no longer do corporate business in foreign soil and PSE.

    Political will is the solution

  11. What’s the batting average of SEC in detecting and prosecuting “fraud, manipulation, and insider trading?”

    • Pardon me, but this is a full editorial…

      We understand the diplomatic way the Philippine Stock Exchange (PSE) worded its statement on two publicly listed companies related to businessman Antonio Tiu, who is now embroiled in the Senate blue ribbon subcommittee’s inquiry into corruption charges against Vice President Jejomar Binay. Tiu, who chairs AgriNurture Inc. and Greenergy Holdings Inc., was dragged into the controversy following allegations that he is a dummy of Binay’s.

      Investor confidence is at stake and any wrong wording in the PSE statement will cause the stock prices of the two companies tumbling. In fact, share prices of AgriNurture and Greenergy plummeted when Tiu’s name was first mentioned at a hearing of the Senate subcommittee last month. In stocks, confidence is all that matters. It is the name of the game.

      But it is not enough for the PSE to politely inform the public that it is monitoring Tiu’s testimony at the Senate hearings. In fact, it must conduct a full-blown investigation of the relationships and dealings of the two listed companies with Sunchamp Real Estate Development Corp., a subsidiary of Greenergy. Sunchamp is in the middle of the controversy involving the Vice President because he claims that it is the real owner of a 350-hectare estate in Batangas that is now referred to as “Hacienda Binay.”

      How can a group of companies not deal with one another? Businessmen put up companies with synergies in mind, with one company expected to generate or contribute profit to another, and vice versa. In fact, funds are sometimes freely transferred from one company to another. On occasion, some unscrupulous individuals use corporate layering to hide ill-gotten wealth or launder money, or go public to muddle any ongoing ownership investigation.

      The PSE can actually start off from what Securities and Exchange Commission Chair Teresita Herbosa told the Senate subcommittee: that the due-diligence audits the SEC had conducted on the listed Tiu companies had resulted in “adverse findings and incomplete disclosures.”

      Herbosa said that: The SEC had reviewed and investigated the disclosures and reports of Greenergy and AgriNurture and would issue notices of clarificatory conferences to the company officers and their auditors; the SEC had questions about some of the statements submitted by the companies and would ask them to explain; and the penalties for false statements by a company could include its closure. The PSE itself has strict penalties for nondisclosure of material information or disclosure of false information.

      It is not enough for the PSE “to make sure that any narration of Mr. Tiu during the Senate hearings that are considered material developments have actually been disclosed or are properly disclosed to the public,” as PSE president Hans Sicat said in the bourse statement issued early this week. Sicat noted that while Sunchamp was not a listed company, any of its transactions that could materially affect any listed company still needed to be properly disclosed by the concerned listed company. But the PSE should not simply wait for these firms’ disclosures. After all, why would AgriNurture or Greenergy disclose something adverse to them and thus drag them into the corruption controversy involving the Vice President?

      It is incumbent on the PSE to ensure that the investing public is amply protected. The PSE should not be so easily satisfied by the listed firms’ short replies that they had no dealings with the government of Makati City, the turf of the Binay family.

      Why not require the companies to submit documents on their major business dealings? What if the dealings were indirect, such as through a third-party trading company or a middleman? Shouldn’t the PSE track the layering that may have been employed in those dealings or transactions? What is the real extent of the relationships among Tiu’s listed and unlisted firms? Is money being transferred from one Tiu company to another? What other companies are owned by Tiu and how are these related to AgriNurture and Greenergy? Where did all the money come from?

      A lot of questions about the corporations owned by Tiu, or even about the businessman himself, are begging for answers. The PSE, with its credible team of investigators, should lead the inquiry to find the answers.

      Read more: http://opinion.inquirer.net/79938/questions-for-pse

  12. Our securities law should be strengthen, among other things, on the area of public disclosures. The law should make it mandatory for companies like PCD Nominee Corporation to disclose all shareholders who are the beneficial owners of 5%, or more, of stocks of publicly-traded companies.

    This will prevent persons with hidden wealth from being shielded from public disclosure by the anonymity given to the beneficial owners of stocks held by PCD Nominee Corporation. After all, these are records of publicly-held companies.

    • I agree. PCD Nominee Corporation is being used to hide true ownership.

      PSE should require companies to enumerate ownership covered by PCD.

  15. The Senate can make use of the results of this hearing in order to enact laws to strengthen the corporation law! Perhaps, it will give the Senate a valid reason to proceed with the hearing!

    • I have always thought the Senate had valid reasons to conduct this probe.

      I am sure laws will be legislated as a result.