PSE lauds DOJ ruling on BW case

While the Securities and Exchange Commission (SEC) intends to pursue the case against brokers that have been implicated in the BW Resources trading scandal last year, the Philippine Stock Exchange has lauded the recent ruling of the Department of Justice absolving the brokers.

"It (the PSE) is happy for the brokers who have been cleared and this decision only affirms the fact that these people were merely acting in their capacity as brokers, and were in no way directly involved with the manipulation of stocks and other violations of the Securities Act," PSE president Ramon T. Garcia said.

He said the PSE’s stand is "to accept and respect the ruling of the Department of Justice" on the BW (now known as Fairmont Holdings) scandal which stemmed from a price manipulation scheme that saw the stock’s spectacular rise in less than a year from its P1 par value to a high of P107 in October 1999 – fueled largely by news of the entry of Macau gaming tycoon Stanley Ho into the company.

The other week, the DOJ, which is now handling the case after it was turned over by the SEC, dropped all charges against eight brokers and two investment houses named in the SEC probe and decided to pursue criminal cases only against three individuals: Presidential friend, online bingo owner and major BW stockholder Dante Tan; Tan associate and BW stockholder Jimmy Juan; and former BW president Eduardo Lim Jr.
But SEC Chairman Lilia Bautista said last week that the watchdog was disappointed by the DOJ ruling yet vowed to file another report to strengthen their case against the brokers.

"If we cannot get them criminally, we will get them administratively," she said.