Ombudsman suspends 10 SSS execs for P1.2-B overpri

Ten officials of the Social Security System were suspended yesterday for six months without pay by Ombudsman Aniano Desierto for their alleged involvement in the P1.2-billion overpricing of PCIBank shares in April 1999.

Suspended were executive vice president Horacio Templo, senior vice president for investment Edgar Solilapsi, SVP for legal and collection Amador Monteiro, and Lilia Marquez, head of the institutional loans department.

The six others were commissioners Rafael Estrada, Miguel Varela, Marianita Mendoza, Juan Tan, Raul Inocentes and Aurora Arnaiz.

Four others who were also charged with graft on Aug. 28 by eight officials identified with the camp of ousted SSS chairman Vitaliano Nañagas were not covered by the preventive suspension because they were no longer in government.

They were former SSS chief Carlos Arellano, retired executive vice president Leopoldo Veroy and former Social Security Commission members Cecilio Seno and Bienvenido Laguesma, the former labor secretary.

Desierto told a news conference that graft investigators have initially found enough evidence that would justify the officials’ suspension. "This is not a decision yet in the administrative case against them," he said.

"This is preventive suspension during the pendency of the administrative proceedings against them. The evidence has shown that there was an overprice of P1.2 billion in the purchase of shares of stock in PCIBank," he added.

"While the recommendation was to buy the shares at P245 on the basis of the market value, it was surprising that the officials increased this to P290, or an overprice of P45 per share," Desierto explained.

"I have just signed the order for the preventive suspension of the 10 SSS officials. This will be delivered to the chairman today for implementation," he said.

Desierto also created two panels to conduct separate investigations on the administrative complaint and criminal charges against the SSS officials, four of whom have since left the government financial institution.

The complainants, represented by Government Corporate Counsel Amado Valdez, said the SSS officials caused injury to the government when they overpriced the 25,855,382 shares of common shares of stock they bought from PCIBank in April 1999.

"By buying at P290 per share, the SSS bought subject shares of PCI at an overprice of P45 per share compared to its market price at the time of purchase at P245 per share," they said.

"This translates to a total of P1.1 billion for the shares. This overprice represents the damage the SSS suffered from this transaction," they complained as they disclosed that the contract with PCI had the blessing of eight SSS commissioners.