Wincorp wants probe by SEC, not BSP

Troubled investment house Westmont Investment Corp. (Wincorp) has asked the Bangkok Sentral ng Pilipinas to defer its investigation and allow instead the Securities and Exchange Commission (SEC) to take over the probe.

Wincorp legal counsel Leonardo de Vera said the investment house, which is facing misrepresentation and fraud charges, wants the BSP not to push through with the investigation because it is the SEC under the law, which has the authority to conduct investigations on investment houses.

De Vera denied reports Wincorp denied BSP officials access to Wincorp records.

"We are just trying to comply with the laws. SEC cannot abdicate in favor of BSP its mandated duties under the law. SEC and BSP cannot by mere agreement between themselves, amend the New Central Bank Act," De Vera said. He added Wincorp's request is still pending consideration before the Monetary Board and in the meantime, the SEC has already initiated its investigation on Wincorp.

De Vera cited a BSP circular dated Feb. 24, 2000, which transferred the regulatory powers of the BSP over investment houses without quasi-banking functions to the SEC.

Wincorp, linked to business associates of former Finance Secretary Edgardo B. Espiritu, is fighting back accusations of fraud and misrepresentation.

Earlier, Wincorp countersued Pearlbank Securities and its chairman Manuel Tan who is also a Wincorp director and stockholder with a 25 percent stake in the investment firm, for P70 million in actual and moral damages.

"The suit is being filed to deter those similarly inclined to file baseless and unfounded claims," De Vera said.

Tan previously filed an P18-million suit with the SEC, saying that without his knowledge and consent, Pearlbank was made to appear as borrower in several debt instruments issued by Wincorp to some of its investors.