Public warned vs doing business with pork barrel-linked firms

MANILA, Philippines - The corporate regulator has warned the public against conducting business with firms implicated in the P10-billion “pork barrel” scam.

In a public notice, the Securities and Exchange Commission (SEC) told investors to conduct due diligence prior to engaging with these companies.

“The SEC has received reports that certain corporations allegedly amassed valuable real and personal properties by means of funds acquired through the pork barrel scam,” it said.

“The reports claim that, based on their capitalizations and financial capacities, these alleged pork barrel-associated corporations could not have possibly expand and gain enormous assets,” it added.

The Senate is currently investigating a multi-billion peso scam using government funds. Non-government organizations (NGOs) set up by controversial businesswoman Janet Lim-Napoles allegedly siphoned off billions of pesos of public funds, with several lawmakers receiving kickbacks or commissions.

The SEC, for its part, told prospective investors to “require the said corporations to present updated certificates of good standing issued by SEC” prior dealing and entering into any form of agreement.

The public should also secure relevant information from various operating departments of the SEC concerning corporations.

Specifically, the public can seek clarify whether or not suspected corporations are included in the SEC watchlist or subject of any pending investigation or case, corporate regulators said.

Napoles’ JLN Group allegedly conducted its dubious businesses through various NGOs like Social Development Program for Farmers Foundation, Bukirin Tanglaw, People’s Organization for Progress and Development Foundation, Masaganang Ani Para sa Magsasaka Foundation Inc., JLN Corp., Tanglaw Para Sa Magsasaka Foundation and Countrywide Agri and Economic Development.