SEC spokesperson Gerard Lukban said PPI failed to meet the June 8 deadline to submit documents required under the agency’s new rules on the registration and sale of pre-need plans.
Among these documents include the management service agreement executed between PPI and its subsidiary Lifetime Plans Inc. on Oct. 21, 2004; actuarial valuation report as of end-2004; trust fund statement as of March 31, 2005; deed of sale of PPI shares in Lifetime executed on Sept. 28 last year; and deed of sale of GPL Holdings’ shares in PPI.
Asserting its regulatory authority, the SEC is now drafting an order to compel PPI to submit the required documents, or face monetary penalties, Lukban said.
But PPI said while the SEC has the authority to regulate and monitor pre-need companies, the company cannot comply with the SEC directive due to the ongoing rehabilitation proceedings in court.
"The Commission has already taken a position adverse to PPI. Hence, it is reasonable to assume that any investigation or inquiry that the Honorable Commission may want to conduct on PPI or any information gathered therefrom is akin to handing over to an adverse party its position in the rehabilitation court," PPI legal counsel Jeanette Tecson said in a letter to the SEC.
She said PPI shall complete and compile the said documents for presentation before the rehabilitation court should the latter order the same.
The SEC has earlier defended its position with respect to PPI’s filing for rehabilitation with the court, saying its findings were based on filings made by the pre-need firm with the corporate regulator, and not merely on hearsay.
"The statements we issued were based on files here in the office after double checking submissions made by the company. Everything came from them. We were just informing the public what we know based on the filings made by Pacific Plans," Lukban said.
The SEC had asked the Makati Regional Trial Court to dismiss PPI’s petition for rehabilitation for lack of merit. In its opposition, the SEC said there is no necessity for PPI to undergo corporate rehabilitation and that the said petition was merely resorted to by the company "to evade its contractual liability to planholders."
The SEC cited the financial statements submitted by PPI which showed that the pre-need firm is solvent and liquid. As of end-2004, PPI even exceeded its trust fund liquidity reserve requirement by P3.77 billion, the SEC said.