Raps filed vs Bautista, 2 other SEC execs

A multi-sectoral group has filed before the Office of the Ombudsman criminal and administrative charges against Securities and Exchange Commission chair Lilia R. Bautista and two other SEC Associate Commissioners for violation of the Anti-Graft and Corrupt Practice Act.

In its three-page complaint filed with the Ombudsman’s Office last Sept. 20, the multi-sectoral group charged Bautista and Associate Commissioners Fe Eloisa Gloria and Joselia Poblador of violating Section 3 of the Anti-Graft Law when they made the extension of the corporate license of Picop Resources Inc. retroactive to March 31, 2002. where its previous license had expired.

The order approving the extension of Picop’s corporate license was signed by Bautista, Poblador and Gloria.

After prolonged haggling with the SEC, Picop paid only on Aug. 12 this year the required fee of P12 million for the extension of its corporate life to another 50 years.

Florio S. Josarafat, head of the multi-sectoral group, said that by making the extension of Picop’s corporate life retroactive to March 31, 2002, "the respondents SEC chair and Commissioners not only violated Section 16 of the Corporation Code but also conferred upon or gave Picop unwarranted benefits, advantage or preference in the exercise of their official or administrative function through manifest partiality in gross violation of the Anti-Graft Law."

Josarafat cited section 3 (j) of the Anti-Graft Law which penalizes the act of "knowingly approving or granting any privilege or benefit in favor of any person not qualified for or legally to such privilege or advantage."

The group also claimed that the SEC order was issued upon the inducement of or conspiracy with the officials of Picop led by its president Teodoro Bernardino and other board members.

Josarafat said the retroactive approval of the corporate existence of Picop, a publicly listed company, also in effect validated the trading of Picop’s securities and all other corporate transactions done between March 31 to Aug. 11, 2002 when the pulp and newsprint manufactured was defunct or non-existent and therefore illegal. "This furthermore conferred or gave Picop unwarranted benefits and advantages constituting act of graft," he said.

He said the acts of the public officials involved also constitute grave misconduct for which they should be administratively dealt with.

Bautista was not available for comment as of presstime.

The SEC agreed to extend Picop’s corporate life for another 500 years following the firm’s settlement of its filling fee deficiency. The company initially paid a mere P210 in filing fee as it contested required amount.

The filing fee of P12 million represents one fifth of one percent of the authorized capital stock of Picop.

Trading of Picop shares had earlier been suspended by the Philippine Stock Exchange for failing to immediate secure the approval of the SEC for the extension of its corporate life. This was also used by the Department of Environment and Natural Resources to hold Picop’s integrate forest management agreement (IFMA) after its timber license agreement expired last April 25.

Controlled by the Bernardinon family, Picop operates its milling plant and wood plantation in Bislig, Surigao del Sur. Once Southeast Asia’s largest integrated wood and paper milling company, it was listed in 1973 and transformed into a holding firm in 1997 as it ventured into particleboard manufacturing and palm oil plantation.

In 2000, Picop generated total revenues of P.42 billion but has remained in the red with net losses of P215.35 million.