House panel to probe into possible insider trading involving SSS execs

The House Committee on Banks and Financial Intermediaries will look into the angle of "insider trading" once it investigates the stock trading activities of four executives of the Social Security System (SSS).

On Thursday, House panel chair Ben Evardone issued a resolution seeking to investigate the supposed anomalies in stock trading involving SSS funds which, he claimed," led to "investments opportunity losses" for the pension fund for private sector employees.

But the resolution has not yet been filed with the Bills and Index Division as of this posting.

"We will look into all angles of the issue, including insider trading because of the involvement of key investment officers of SSS and its accredited stockbroker/s," Evardone told GMA News Online.

"We will specifically look into the possible revenue losses as a result of the connivance between the SSS officials and the stockbroker/s," he said.

Insider trading, in economic terms, refers to the buying or selling of security by an individual with access to material, nonpublic information about the security, according to Investopedia.

While it may be legal in some cases, insider trading may be considered illegal if the information has not yet been made public.

Citing news reports, Evardone said in the resolution covers SSS officials, including executive vice president Rizaldy Capulong, who might have "improperly made money from buying and selling stocks for their personal accounts using SSS-accredited brokers handling the pension fund’s equity investments."

Other officials involved are Equities Investment Division chief Reginald Candelaria, Equities Product Development head Ernesto Francisco Jr., and chief actuary George Ongkeko Jr.

Evardone said cited news reports that the officials withheld stockbrokers' information from SSS, utilized the same information and "cornered" the benefits of five companies' initial public offerings for their own benefit.

"Thus, they personally made profit out of such information, instead of the SSS, which thus suffered loss of profitable investment opportunities," the resolution read.

In calling for the probe, Evardone cited the Securities Regulation Code which seeks to “minimize, if not totally eliminate, insider trading and other fraudulent or manipulative devices and practices which create distortions in the free market."

Evardone said they will invite stockbrokers as resource persons during the inquiry.

"We will also ask the SSS about their policy on accreditation of brokers. We will also invite the SEC to explain the apparent unethical conduct of those brokers involved," he told GMA News Online.

However, he did not name the stockbrokers yet. "We will get [the list] from SSS," said.

SSS Commissioner Jose Gabriel La Viña has filed an administrative complaint against the four officials.

Bayan Muna party-list Representative Carlos Zarate has urged the SSS to freeze all bank and financial accounts and seize the supposed stocks of the officials involved.

He called for an audit of the assets and investments and a lifestyle check of all board members and other officials of the SSS. — VDS, GMA News