Text message can’t be basis for SEC probe — lawmakers

Congressmen slammed yesterday the Securities and Exchange Commission (SEC) over its plan to investigate the stock market transactions of a private securities trading company based solely on text messages sent by anonymous texters.

The lawmakers were reacting to published reports that the SEC would be looking into the stock transactions of First Resources Management and Securities Corp. for allegedly getting the bulk of the stock market deals of the Government Service Insurance System (GSIS) for the first half of the year. This allegation was sent to SEC officials through text messaging.

Reps. Simeon Kintanar of Cebu and Alfonso Umali of Mindoro Oriental said the regulatory body could not just conduct an investigation based on anonymous text messages.

Kintanar, former chairman of the National Telecommunications Commission (NTC), said: "Anonymous text messages should not be made as a basis to investigate. So many people have the capability to sent text messages."

He said to conduct an investigation based on anonymous text messages is "very tricky," pointing out that the text messages could have been fabricated.

The lawmaker noted that there should be a law penalizing penalizing people sending anonymous text messages to malign individuals, companies or organizations.

Umali, a member of the House committee on transportation and communications, said an agency with investigative powers should not make an anonymous text as a basis to conduct an investigation.

"How can you entertain an anonymous complaint. If that is the case there might be a lot of character assassination. You won’t know if a political opponent or a business competitor sent it," Umali stressed.

He said the SEC investigation could send the wrong signal to local and foreign investors in the stock market as anybody now can be the object of harassment or vilification campaign.

Umali said just like cases being filed before the Ombudsman, the complaints are signed because if unsigned, these are immediately dismissed. "The complainant should be known and his signature should be on the written complaint."

Businessmen have also expressed alarm over SEC’s plan to investigate First Resources based on anonymous text messages, saying the move could unsettle the market and discourage investors.

"Investors should be protected from harassment. Any anonymous complaint should not be entertained because this might be used to destroy the integrity of a company or an individual," they said.