Malacañang won't tolerate insider trading

MANILA, Philippines - Malacañang warned yesterday it would not tolerate insider trading among its government officials amid the behest loan controversy involving businessman Roberto Ongpin and the Development Bank of the Philippines (DBP).

“That can be assured. President (Aquino’s) appointees are screened very well, and once problems occur, the President immediately calls their attention. This is not something that will be tolerated by the President,” deputy presidential spokesperson Abigail Valte said over radio dzRB.

Malacañang had supported the investigation into the alleged behest loan of Ongpin and stressed there was nothing personal about it.

During a Senate hearing, Senate President Juan Ponce Enrile said Ongpin might have engaged in insider trading with the help of former DBP president Reynaldo David in selling shares of stocks he briefly held in Philex Mining Corp.

Enrile voiced his suspicion during a hearing on behest loans where he castigated David for reportedly allowing Ongpin to dictate on the bank the terms of a P660-million loan the latter used to buy some 50 million Philex shares in 2009.

Ongpin, through his Golden Media, later sold the shares to Twin Rivers of Manuel Pangilinan. He acquired the DBP loan through his Delta Ventures Resources Inc. (DVRI).

During the hearing, it was learned that Pangilinan was able to corner 20.6 percent of Philex shares on Nov. 28, 2008 from DBP.

His acquisition of additional shares from Ongpin’s Golden Media allowed him to gain control of Philex.

Enrile said after the hearing there was still no indication of former first gentleman Jose Miguel Arroyo’s complicity in the alleged anomaly.

Presidential spokesman Edwin Lacierda earlier denied that the administration was persecuting Ongpin, who was accused of benefiting from the loan.

Lacierda said the investigation was focused on whether the loan application followed the normal process or someone influential ordered DBP officials to grant the loan.