Ongpin camp says derivative suit lacks merit

MANILA, Philippines - The camp of former Trade and Industry Minister Roberto V. Ongpin has maintained he did not use any confidential or privileged information relative to his purchase of Philex Mining Corp. shares in 2009 as he termed the derivative suit filed against him as baseless.

Rodolfo Ma. Ponferrada, general counsel to the RVO Group of Companies, said the case “lacks merit and is nothing more than a nuisance and harassment suit”.

The derivative suit was filed by a certain Atty. Zenaida Ongkiko-Acorda with the aim of recovering the purported short-swing profits allegedly realized by Ongpin when he bought shares of Philex.

Ponferrada pointed out that the complainant failed to pay the correct filing fees.

“It is basic in our procedural laws that unless the correct filing fees are paid, a court cannot obtain jurisdiction over the case.

Instead of ordering the payment, the trial court considered the filing fees just a lien on whatever future judgment may be rendered. With all due respect to the honorable trial court judge, we disagree and Mr. Ongpin’s counsel of record, Atty. Alexander J. Poblador, has since elevated the matter before the Court of Appeals,” Ponferrada said.

Ponferrada said the complainant is not a stockholder of Philex and that there has been no demand from either herself or Philex for the return of the supposed “short swing profits.”

The Development Bank of the Philippines earlier alleged that Ongpin obtained a P660- million behest loan from the previous bank’s board.

The loan was reportedly used by Ongpin’s group to purchase 50 million shares held by DBP in Philex for P12.75 per share. Ongpin eventually sold the shares to Manuel V. Pangilinan of Metro Pacific Investments Corp., the Philippine flagship of Hong Kong-based conglomerate First Pacific Co. Ltd., for P21 per share, gaining P9.25 each share.

First Pacific gained control of Philex following the acquisition of Ongpin’s shares.

A preliminary investigation conducted by the Securities and Exchange Commission showed that Ongpin’s group might have engaged in insider trading, noting that the businessman bought Philex shares shortly before the sale purchase agreement was signed.