No need to summon Manny Pangilinan in ‘insider trading’ Senate probe, says Enrile

Manny V. Pangilinan and Senate President Juan Ponce-Enrile. INQUIRER FILE PHOTO

Manny V. Pangilinan and Senate President Juan Ponce-Enrile. INQUIRER FILE PHOTOMANILA, Philippines – There is no need to investigate Manny V. Pangilinan, Senate President Juan Ponce-Enrile said Wednesday when asked if the businessman could be held liable for “insider trading” when he bought the Philex Mining shares that were sold in the market by a former trade chief.

“What do they want to elicit from him? We are not a criminal investigation body. We have already the affidavit, we can already prepare a report based on the statement of Mr. Pangilinan about his participation,” he added.

Enrile stressed that it wasn’t Pangilinan’s fault.

“Wala, walang kasalanan yun [He’s really not at fault] because he’s [Pangilinan] the buyer. The buyer has nothing to do with insider trading . Sya ang nabakalan so to speak. He bought shares at a very high value,” Enrile told reporters on Wednesday, a day after the Senate resumed its investigation into the alleged “insider trading” allegedly committed by Roberto V. Ongpin when he sold the shares he acquired from Philex Mining to Pangilinan.

He said Pangilinan only entertained an offer by Ongpin to buy the shares of Philex, which he bought from the Development Bank of the Philippines at P12.75 per share. Ongpin sold the shares to Pangilinan at P21 per share.

As a former director of Philex, Enrile said Ongpin knew that Pangilinan, a stockholder of Philex, wanted to expand control of the company.

“Mismong sa ads ni [Even in the ads of] Ongpin, sinabi nya [he said] that he knew Pangilinan was buying shares to attain a 40 percent control of Philex so he knew that there’s somebody inside the organization, among the stockholders of Philex who is open to buy shares,” said the Senate leader.

“He [Ongpin] was director and officer of Philex and Mr. David was a director of Philex so they knew that,” he pointed out, referring to former DBP president Reynaldo David.

An investigation by the Securities and Exchange Commission showed that Ongpin “may have committed insider trading relative to his acquisition of Philex shares through Goldenmedia Corporation on Dec. 2, 2009.”

If proven that there was indeed “insider trading” committed in the sale of Philex shares, Ernile said those involved would be asked to return whatever profits they earned from the transaction.

“Under the law, the management of the company whose shares had been traded by an insider ought to file a case to recover the profits, but that can be done by any stockholder. What we call a derivative suit,” he said.