Securities and Exchange Commission (SEC) associate commissioner Juanita Cueto said she was informed by PSE chairman Felipe Yap that the exchange’s search committee has approached two former PSE governors – Vicente Jayme and Margarito Teves – for the job but both declined.
Former Finance Secretary Jayme and former Negros Rep. (now Land Bank president) Teves sat at the PSE board of governors as private sector representatives until March this year.
Cueto said the search committee also considered Ismael Cruz of IGC Securities, a current board governor and chairman of the PSE building committee handling the negotiations for the proposed relocation of the exchange in Fort Bonifacio.
But she pointed out that aside from mixed reactions among the BOG members themselves, the choice of Cruz as next PSE president faces a legal hurdle which needs to be referred to the SEC for approval.
The Securities Regulation Code (src) prohibits the appointment of any officer of the exchange who is a member or affiliated with any broker, dealer or member for at least two years prior to such appointment.
The appointment of Garcia himself as PSE president in May 2000 was questioned since he was then the corporate nominee of his own brokerage house RTG & Co. but at that time, the src was not yet in effect.
Garcia was dismissed as PSE president by an eight-one vote by the BOG last Sept. 26 due to the Fort Bonifacio relocation issue, wherein he insisted that Fort Bonifacio Development Corp. (FBDC) honor its original commitment to host the PSE headquarters by 2004.
A controversial press statement last Sept. 17 later did Garcia in as he pointed an accusing finger to FBDC chairman and PSE governor Manuel Pangilinan for reneging on their commitment and questioned his sense of business ethics and principle.
Pangilinan, whose First Pacific group also controls PLDT, tendered his irrevocable resignation from the PSE board the following day but PSE chairman Yap said the board has not yet acted on his resignation.
The PSE has a 15-man BOG, majority of whom (or eight) are non-brokers, including Garcia who still sits on the board.
As a newly demutualized corporation, the PSE is now a stock corporation instead of an exclusive membership club. With this new set-up, the exchange now acts as a self-regulatory organization (SRO) governed by the Corporation Code.
At present, the day-to-day operations of the PSE are being managed by a four-man committee composed of Yap and three other BOG members: Vivian Yuchengco, Cayetano Paderanga and Mario Camacho. – Conrado Diaz Jr.