CEBU, Philippines — The Cebu provincial government supports the Securities and Exchange Commission’s (SEC) crackdown on illegal lending operations.
Recently, the Sangguniang Panlalawigan passed a resolution in support of the SEC’s move to clamp down illegal lending operations which also includes the revocation of the lending registrations of companies and partnerships operating without the necessary license.
“As a way of supporting in upholding the indispensable role and participation of the private sector and as an advocate of preventing or suppressing fraudulent devices and ways to obtain money or property from the public and as a means to protect the people’s interests, this Office hereby supports the Securities and Exchange Commission’s action,” read a part of the resolution.
Lending firms and partnerships, upon registration, are established only as corporations. Before they can actually operate, they must submit the necessary requirements to obtain the Certificate of Authority (CA).
This move to eliminate the illegal lending operations was approved during the commission’s July 7 en banc meeting.
Since then, through its Corporate Governance and Finance Department (CGFD), the SEC has revoked the registration of 2,086 lending companies nationwide.
Of that number, 836 corporations’ registrations were revoked for operating without the necessary license.
This operation by the SEC, according to them, was done to protect the credibility of legitimate legal lending firms and to enshrine the financial security of the public against illegal lending operations.
Aside from the revocation, the violation could also mean P10,000 to P50,000 or imprisonment of six months to 10 years or both.
The Sangguniang Panlalawigan, through the resolution that Board Member Thadeo Jovito Ouano has sponsored, strengthened the anti-illegal lending drive by the SEC by adopting it in the Province of Cebu.
A copy of the resolution will be provided to the mayors of the different cities and municipalities in the province and to Emilio Benito Aquino, the Chairperson and CEO of the SEC. — GAN (FREEMAN)