The Securities and Exchange Commission (SEC) is set to complete by tomorrow a partial report on the investigation into alleged insider trading and stock manipulation involving property and gaming firm Best World (BW) Resources Corp.
Outgoing SEC Chairman Perfecto Yasay Jr., whose last day in office will be on March 25, said he has already directed prosecution and enforcement department (PED) acting director Ruben Ladia to rush the completion of the report, which should be made public not later than Thursday.
"At the earliest, the PED will be able to present its report to the commission en banc on Tuesday. The associate commissioners, however, will not be approving or disapproving the report, and will only put a notation. It is the PED that will recommend to the justice department the filing of charges it sees appropriate," Yasay said.
The SEC chief told reporters he does not know the contents of the PED.
"I am as much in the dark as you are. I will only know the entirety of the report on Tuesday," he pointed out.
Yasay said earlier the initial results of the investigation showed strong evidence was found to recommend the filing of criminal charges against 11 individuals for various violations of the Revised Securities Act including insider trading, stock manipulation and other acts of fraud.
He stressed that the criminal charges will be filed against individuals and not the companies they represent.
Yasay said the presentation of a partial report is all that can be accomplished during his last few days in office, considering the voluminous documents the PED has had to look into during the probe.
Earlier, he expressed confidence that the incoming SEC chief Lilia Bautista will be able to fully complete the probe before the end of the year.
Yasay did not name the individuals but among those who were sent notices by the PED were BW majority owner Dante Tan and stockholder Jimmy Juan.
Tan, a close friend of President, earlier asked the SEC to freeze its probe on the BW fiasco. He expressed concern about the objectivity of the probe, saying the issue has been extensively played up by the media "as a consequence of the obviously premature and unwarranted publication of the investigation report last Feb. 11 by the Philippine Stock Exchange (PSE)."
For his part, Juan said he would cooperate with the PED, but added that his cooperation "cannot be taken as curing the fatal defects of the PSE investigation and report."
Juan also claimed that PED did not specify the charges against him, adding that with such vague and general accusations, he cannot make an adequate and accurate comment on the case.
He, too, asked for a copy of the report even as he branded it as void and cannot be used a basis for the SEC probe.
"The validity of the report...is a prejudicial question which should cause this Office (SEC) to suspend this formal investigation," Juan said.
Juan also argued that under SEC rules, the corporate regulatory body can proceed with its own inquiry only after its business conduct and ethics committee has submitted its own findings and recommendations to the commission.