Philippine Investment Two denies anti-dummy charge

MANILA, Philippines - Philippine Investment Two Inc. (PI2), a special purpose vehicle (SPV) created under the Special Purpose Vehicle Act of 2002 to acquire non-performing assets from Philippine financial institutions, issued a statement to clarify the Anti-Dummy Law case filed against certain former directors of PI2, including Carlos Mañalac, and a current director, Norman Macasaet.

The company stated that the establishment of PI2 and its subsequent investments were legitimate transactions in full compliance with all Philippine laws and regulations.

PI2 clarified that 60 percent of its capital stock is owned by Argoman Real Estate Investments Inc., a Philippine company controlled by A. B. Colayco, a prominent and successful Filipino businessman. PI2 is headed by Colayco, as president, and lawyer Leonardo Siguion Reyna, one of the leading legal practitioners in the country, as chairman. Siguion Reyna owns a qualifying share in the company, corresponding to 0.00032 percent of its capital stock. The statement said the corporate structure of PI2 complies with Philippine laws and regulations as confirmed by several legal opinions from leading law firms in the Philippines. The corporate structure of PI2 was also presented to, and discussed with, Philippine regulatory agencies. Hence, PI2 meets all legal and regulatory guidelines.

PI2 further explained that Mañalac held and subsequently sold one share of stock, representing 0.00032 percent of the company’s capital stock, and Macasaet holds only one share of stock, or 0.00032 percent of the company’s capital stock. There is no reasonable legal interpretation that PI2 and these individuals violated the anti-dummy law, the statement said.

The company said it firmly believes that there is no basis for the charges of alleged violations of the anti-dummy law and that it intends to continue a vigorous defense.