Ongpin cleared of insider trading

MANILA, Philippines — The Court of Appeals (CA) has junked with finality the multiple counts of insider trading cases against former trade minister Roberto Ongpin involving his shares in Philex Mining Corp. 

In a five-page resolution released yesterday, the special 13th Division of the appellate court affirmed its decision in December last year, which reversed the 2016 ruling of the Securities and Exchange Commission (SEC) that found Ongpin liable for 174 counts of insider trading.

The CA denied the appeal filed by the SEC.

“This court is therefore not convinced that a modification of our ruling is warranted,” read the ruling penned by Associate Justice Ma. Luisa Quijano-Padilla.

The CA stood firm in its finding that the insider trading charges against Ongpin were not supported by substantial evidence.

The appellate court did not agree with SEC’s conclusion that all the elements of insider trading were established during its investigation and that Ongpin should be meted the penalty of P174 million fine for 174 counts of insider trading.

It rejected the claim of SEC that since the commission is a quasi-judicial body, its findings should be conclusive and binding upon the court.

Agreeing with Ongpin’s argument, the CA held that only “findings of fact” of quasi-judicial agencies are binding upon the court as stated in Section 10, Rule 43 of the Rules of Court.

“This Court is therefore not bound by the legal conclusions of the former owing to the inherent duty of courts of law to determine legal issues and settle actual controversies,” it stressed.

The CA noted that all other arguments raised by SEC in its motion for reconsideration “are mere rehash” of those that have already been discussed and resolved in the assailed ruling.

In its July 2016 decision, the SEC found Ongpin, who served as trade minister under the administration of the late strongman Ferdinand Marcos, liable for insider trading when he accumulated then sold a big block of Philex shares to Manuel Pangilinan-led First Pacific, with the prior knowledge of an agreed upon price at which to sell the shares.

It ordered him to pay a fine of P174 million, or P1 million each for 174 counts of insider trading, and also barred him from becoming part of the board of any Philippine Stock Exchange-listed firm.