Multitel has two rehabilitation receivers as a result of the respective petitions filed by Multitel owner Rosario Baladjay and the company’s investors with different courts. Baladjay filed her petition with the Makati Regional Trial Court while Multitel’s investors filed their request with the Muntinlupa RTC.
"There should only be one receiver. They should get together. But the SEC can only suggest. It’s still up to the courts to decide what to do with Multitel. It would be good though if the courts would consolidate their actions," SEC chairperson Lilia R. Bautista said.
Multitel investors are now close to recovering a portion of investments placed with Multitel and all other corporations affiliated with Baladjay. This after the Makati RTC approved the recommendation of Multitel rehabilitation receiver Teodoro Eusebio that he be allowed to receive, compile and validate all claims against the Multitel group.
Investors were directed to either go to the SEC or the old Hall of Justice Building at J.P Rizal in Makati to fill out the claim forms which have been available since June 13.
Tomas Syquia, head of the SEC’s Compliance and Enforcement Department, said this was a positive development and considered it a first step towards the recovery of investments.
The Multitel group has come under fire from securities regulators for offering investment contracts to the public without prior registration with the SEC. Under the Securities Regulation Code, no security shall be sold or distributed without a registration statement duly filed with and approved by the SEC.
The Multitel group’s modus operandi was to offer high interest rates of as much 15 percent a month for a six-month placement of P100,000. The company was issued a cease-and-desist order in January 2002 for selling securities to the public without prior registration with the SEC.
Other companies allgedly used by Multitel in soliciting investments from the public are Partners in Progress Holdings Inc., Sage Management Corp., CUP Multi-Purpose Cooperative Inc., Multilink Multi-Purpose Cooperative Inc., Oceanic Employees, Bethel Multi-Purpose Cooperative, Goodwill Development Cooperative, and Handog sa Pag-unlad Multi-Purpose Cooperative.
These conduit firms have interlocking stockholders, directors and officers who are connected in one way or another to the management or operation of Multitel.
Baladjay is now under the custody of the National Bureau of Investigation due to the individual estafa cases filed against her by Multitel investors.
The SEC estimates that the Multitel group has collected between P20 billion and P25 billion from various individuals all over the country. The group reportedly employs about 600 agents or what they term as counselors.