Palace suspends SEC commissioner for 1 year

Malacañang has handed Securities and Exchange Commission (SEC) associate commissioner Jesus G. Martinez a one-year suspension order due to his failure to pay debts and for dishonest conduct prior to assuming his post.

The ruling, however, is not yet final and executory as it is still subject to an appeal by the respondent. Executive Secretary Eduardo Ermita said Martinez has 15 days to appeal the decision issued by Manuel Gaite, Deputy Executive for Legal Affairs at the Office of the President.

Martinez, however, said he has not yet received a copy of the order and even checked with Malacañang but reportedly found out there was nothing on file.

"I could not comment on the supposed order you got because I don’t know whether it is authentic. If there is really an order that had been issued then why would they hide it. I don’t have a copy of it. If there is an order that has been issued, I would be the first one to say it. I will not hide it," Martinez said in a telephone interview.

Martinez said he would appeal the ruling if he gets a copy of the suspension order.

The decision stemmed from a complaint filed by Cornelis W. Lubberts against Martinez on June 1, 2004 at the Office of the President. In his complaint, Lubberts claimed that Martinez failed to pay him P600,000 inclusive of interest.

"Normally, this office does not interfere with private transactions between public officials and private persons. However, we find that respondent’s actions towards complainant fall short of the standard of conduct required of him as a public official and are not in keeping with his duty to act with justness and sincerity," Gaite said.

"It finds Martinez’s refusal to pay after a lapse of more than seven years and his inconsistent characterization of the nature of his obligation as willful and deliberate attempt to evade payment," the Malacañang ruling said.

In particular, Martinez was found to have violated Section 4 of Republic Act 6713, which requires all public officials and employees to act with justness and sincerity.

During his suspension, Martinez shall not be entitled to monetary benefits including leave credits. As commissioner, he earns P2.4 million a year.

While under suspension, Martinez is not qualified for any promotion.

Martinez, however, raised a howl over the one-year suspension, saying it is too harsh. "This is way beyond what the law states. Under the Civil Service rules, you only get reprimanded for first offense. Second offense, you get suspended for one day to 30 days, and third offense is you get dismissed. This is my first offense in my whole life. What is the basis there alone?"

"I think that the intention here is to hurt me. Somebody has been using the coercive power of a higher office," Martinez further said.

Lubberts recalled that he got a fax message from Martinez in Nov. 1997, asking for a loan of P200,000. He agreed to the request and a three-fold interest rate was agreed upon.

Martinez said he needed some funds to pay bills in the Philippines while he was in the United States pursuing a business transaction which later did not materialize. He said things turned for the worse when it became more manifest that the US transaction would not push through and he would not be able to get the P400,000 profit as agreed upon.

In Oct. 2003, the Baguio Regional Trial Court ordered Martinez to pay Lubberts P600,000 and attorney’s fees. Martinez sought a 30-day extension but still failed to pay.

Lubberts said the Metropolitan Trial Court in Makati likewise dismissed the complaint for grave threats filed by Martinez.

Martinez said the case filed by Lubberts was another in a series of harassment suits. He said that he had appealed the court’s decision to the Court of Appeals and that the appeal is still pending.

He said that there is no dishonesty until the issue raised in the civil case has been thoroughly litigated and decided, adding that he never refused to pay the P200,000 loan. He stressed he just did not agree to the decision that he should pay the additional P400,000.

The complaint was first endorsed to the Presidential Anti-Graft Commission (PAGC) on June 28, 2004 for appropriate action. After the investigation, it was recommended that case be dismissed due to PAGC’s limited jurisdiction over the subject matter.

PAGC is mandated under EO 12 Series of 2001 to assist the President in efforts to curb graft and corruption through investigation of cases.

The Office of the President, however, deemed it proper under the circumstances to take cognizance of the case for a final determination of Martinez’s administrative accountability. "Respondent being a presidential appointee, having been appointed as SEC commissioner by the President on March 14, 2002, this office clearly has jurisdiction over the administrative complaint against him," Gaite said.