The SEC issued this statement in response to allegations that the corporate watchdog agency had seized cash from MIHI, forcing the holding firm to stop paying back its investors.
"The Commission wishes to inform the public that during the service of search warrants against MIHI last Sept. 30, the officials from the SEC and agents from the National Bureau of Investigation did not seize any cash from said corporation in order not to disrupt the return of investments to legitimate investors," the SEC said in a notice to the public.
As to the allegation of unauthorized participation of SEC officials in the raid, SEC said it has the power to search and seize documents under Section 5 of the Securities Regulation Code.
SEC chairperson Lilia R. Bautista said it was in this context that the Commission signed a memorandum of agreement with the NBI in order for the latter to assist the SEC in the conduct of applying and executing search warrants.
This tie-up, according to Bautista, has not been questioned by any court.
Bautista also said there is no provision that prohibits a SEC director from being present in the service of a search warrant. "Generally, this is left to the discretion of the director involved but we advocate leadership by example," she said.
"The actions by SEC officials show that the Commission will take action without fear or favor against anyone who violates any of the laws being administered by the Commission," Bautista further said.
Finding no basis in the allegations leveled against the SEC, Bautista has advised Multitel to be more prudent in their charges against government officials unless they have more concrete evidence.
SEC said the appropriate criminal and administrative charges are being readied against Afulugencia and his associates in line with the Commission’s thrust to rid the pre-need industry of unscrupulous agents and corporations.
Phil-Asia has no pre-need plan available for sale since 1993. It has had no dealers licensed since 1996 and no authority to operate a branch.
Since the company failed to comply with SEC requirements, Phil-Asia had been prohibited from selling new pre-need plans. It was only authorized to service existing planholders from Dec. 23, 1993. –Zinnia dela Peña