House committees probe insider trading activities of SSS execs

November 30, 2017

The House committees on good government and public accountability and on banks and financial intermediaries chaired by Reps. Johnny Pimentel of Surigao del Sur) and Ben Evardone of Eastern Samar) on Wednesday began their joint inquiry into the alleged irregular stocks trading activities of certain officials of the Social Security System (SSS).

The SSS officials who are subject of the investigation are Rizaldy Capulong, Executive Vice President for Investments; Reginald Candelaria, chief of Equities Investment Division; Ernesto Francisco, head of Equities Product Development; and George Ongkeko Jr., chief actuary.

Pimentel, in his preliminary remarks, saidthe mandate of the committee on good government and public accountability is to determine if SSS officials were remiss in the performance of their mandated duties and responsibilities tantamount to malfeasance, misfeasance or nonfeasance and if remedial legislation is necessary to resolve the issues addressed to the committee.

He stressed that although the SSS is conducting its own investigation into the case, the committees could not be prevented from conducting their inquiry, citing rules of procedure governing inquiries in aid of legislation.

Evardone, in his resolution, cited reports about SSS officials who allegedly made money from buying and selling stocks for their personal accounts using SSS-accredited brokers handling the pension fund’s equity investments.

He said the concerned executives reportedly withheld stockbrokers’ information from the SSS, used the same information which was obtained in their official capacity, and consequently cornered the benefits of five companies’ initial public offerings (IPOs) for themselves.

Evardone said these officials allegedly personally made profit out of such information, instead of the SSS making the profit, which resulted in investment opportunity losses for the agency.

Partylist Rep. Isagani Zarate, for his part, said SSS executives Capulong, Candelaria, Francisco, and Ongkeko allegedly illegally profited from their position by trading their own stocks using the same stockbrokers who manage the portfolio of the state-administered pension fund.

Deputy Speaker Romero Quimbo of  Marikina City appealed to SSS officials to cooperate with the joint committees as the panels could not be cowed by the pendency of any criminal or administrative investigations, in the light of the pending investigation being conducting by the SSS on the alleged insider trading controversy. DMS