At the same time, CAP branded as a "nuisance suit" the complaint filed by lawyer Maricel Lopez accusing the pre-need firm’s officers and directors of siphoning funds of the company to bankroll the operations of the Sobrepeña family-owned companies.
"My personal opinion is this is nothing but a nuisance suit. I don’t think that they even represent minority of our stockholders. This lawyer filed class suits that have not prospered. She filed class suits against DM Consunji and Universal Rightfield," CAP’s First executive vice-president Jose S. Montoya said.
"We want to know who they are representing. This could be part of a grand plan to sabotage CAP. We have already referred the case to our legal counsel, " Montoya added.
Lopez, however, said she was successful in getting the public offering of Universal Rightfield Corp. cancelled by the SEC on the strength of strong evidence presented. The case, however, has been elevated to the Court of Appeals.
CAP first vice-president Bobby Café said the pre-need firm’s investment in MRT bonds went through a series of SEC reviews in 1998 to 2002. These bonds, he said are backed up by the government and the highest-earning asset of the company’s trust fund given a weak economy and low returns from bank deposits, Treasury bills and other government securities.
"The investment was perfect for CAP as it was intended to meet long-term plan maturities. It was a hedge against inflation because it is dollar-denominated. The transaction is without a doubt to the advantage of CAP," Café said.
As far as Bank of Commerce is concerned, Café said CAP’s investment in the bank was also approved by the SEC and that the bank has, in fact, grown and continues to expand its operations.
Café also pointed out that the investment in Banccommerce was made by another trustee bank not related to CAP nor Banccommerce and that the shares were only transferred later to the Banccommerce trust fund.
Moreover, Café stressed that it is not CAP that invests the money in the trust funds. "Investments are left to the experts – the trustee banks, which have the exclusive management and control over the funds. We may suggest investment opportunities but ultimately the decision where to invest is left to the judgment of the trustee bank."
Among its trustee banks are the Philippine Veterans Bank, Bank of Commerce, Equitable-PCI Bank, Union Bank of the Philippines and Bank of the Philippine Islands.
"We’d like to believe that our trustee banks have exercised due diligence in their investments. With respect to the investments in Fil-Estate and related companies, the records will show that investments in MRT Bonds, Manila Southwoods, Camp John Hay, Renaissance 3000 were profitable for the trust fund," Cafe said.
To douse the concerns of its planholders, Café said CAP is doing everything to beef up its trust fund, which now stands at over P4 billion.
"The company is not swindling anyone. In spite of the tremendous increase in tuition fees, we are still paying planholders and expect to continue paying planholders as their plans mature. In fact, from March 28 up to now, we have released about P423 million in manager’s checks to pay for tuition fees, with hundreds of checks still to be claimed by planholders," he stressed.
"Our planholders only need to go to the seventh floor of our building to claim their checks. Right now, we are processing claims for the summer classes as well as for the incoming first semester of school year 2005-2006," Café said.
Café also pointed out that since 2002, the SEC comptroller for CAP has been looking at the company’s records. "If there was estafa, the SEC should have closed CAP down already. CAP believes its hands are clean."