SSC recommends dismissal of complaints vs SSS officials in stock controversy

MANILA, Philippines — The Social Security Commission (SSC) has recommended the dismissal of the administrative complaints filed by former commissioner Jose Gabriel La Viña against Social Security System (SSS) officials allegedly involved in a stock trading controversy.

SSC issued Resolution 181 last March 7 recommending the dismissal of the cases against SSS executive vice president Rizaldy Capulong, fund management group officer-in-charge Ernesto Francisco Jr., former investment division chief Reginald Candelaria, and former chief actuary George Ongkeko Jr.

 “It is hereby recommended that the complaint against the herein respondents be dismissed for insufficiency of evidence,” read the resolution.

The resolution was signed by SSC vice chairman Emmanuel Dooc, Labor Secretary Silvestre Bello, and SSC members Diana Pardo Aguilar, Anita Bumpus-Quitain, Arthur Amansec, Michael Regino and Gonzaldo Duque.

A copy of the resolution will be forwarded to the Office of the Ombudsman for information and appropriate action.

Last year La Viña filed an administrative complaint against Candelaria and Francisco for allegedly failing to recommend initial public offering (IPO) shares to the SSC for accreditation, thus causing a loss of opportunity for the SSS fund.

 These include shares in IPOs of Metro Retail Stores Group Inc. (MRSGI), Golden Haven Memorial Park Inc., Shakey’s Pizza Asia Ventures Inc., Wilcon Depot Inc., and Eagle Cement Corp.

 La Viña also accused the officials of gross misconduct for conflict of interest in buying shares of stocks, particularly of MRSGI, and conflict of interest in the accreditation of brokers and stocks.

 “Candelaria and Francisco argued that said IPOs, except for MRSGI, did not qualify for SSS investment as said IPOs did not meet the requirements of the SSS Law or the Stock Accreditation Guidelines,” the SSC said.

 Furthermore, the Commission noted that SSS Office Order 2015-40 allows SSC or SSS officers and employees to engage in personal equity investment, provided that there is no conflict between their private investments and public duties.

 The rules also provide that the SSS should determine the need to implement a blackout period on any particular stock, and that SSC or SSS officials should secure a pre-clearance approval prior to the execution of a trade in any security.

 “Notably, Candelaria and Francisco were able to secure clearance from the head of the investment sector,” the SSC said.

 “With respect to MRSGI IPOs, the fact-finding report revealed that Candelaria and Francisco bought said IPOs two weeks before the recommendation for accreditation of said IPOs to the SSS...In this case, there was no notice of blackout period issued prohibiting SSC or SSS officers and employees from buying or selling MRSGI IPOs,” it said.

Meanwhile, the SSC said there is also no sufficient evidence to hold Capulong liable for gross negligence due to his approval of Candelaria and Francisco’s purchases of MRSGI’s IPO.