Ombudsman junks CAP complaint vs SEC official

The Office of the Ombudsman has junked the complaint filed by College Assurance Plans Phils. Inc. (CAP) against Securities and Exchange Commission (SEC) general accountant and former head of CAP’s oversight body Roberto Manabat due to lack of jurisdiction.

In its complaint, CAP alleged that Manabat violated Sec. 3 of the Anti-Graft and Corrupt Practices Act by granting a grossly excessive and unreasonable compensation to CAP comptroller Mario Aguas and issuing arbitrary rules. Aguas was given a monthly compensation of P100,000.

"The instant complaint is in effect a collateral attack on the authority and power of the SEC to regulate CAP. Further proceedings on the instant complaint should not be allowed as this Office is not the proper forum to determine the validity or legality of rules and regulations issued by an agency of the government pursuant to its mandate, less this Office arrogates unto itself the power which is legally vested in the judicial branch of the government. The remedy of the complainant is to question the same before the appropriate court," the Office of the Ombudsman said.

On the alleged excessive exorbitant monthly compensation of the SEC- appointed comptroller of CAP, the Office of the Ombudsman said CAP "should have first appealed such matter to the SEC instead of filing the instant complaint with this Office."

CAP argued that the monthly compensation of Aguas is disproportionately high compared to other CAP officers.

The SEC earlier filed before the Department of Justice a criminal complaint against the directors and officers of CAP for the unauthorized sale of pre-need plans in violation of the Securities Regulation Code (SRC).

It also sought the issuance of a hold-departure order against the respondents to prevent them from fleeing the country and evading criminal liabilities.

In its complaint, the SEC said CAP sold pre-need educational plans despite the fact that it knew it had no more registered plans to sell in violation of Sec. 16 of the SRC. CAP had used up all its registered plans as early as June 2004.

The SEC said the members of the board along with the responsible officers are liable under Sec. 73 of the SRC which states: "If the offender is a corporation, the penalty may in the discretion of the court be imposed upon such juridical entity and upon the officer or officers of the corporation."

Any person who violates the rules may be imposed a fine of not less than P50,000 nor more than P5 million or imprisonment of not less than seven years nor more than 21 years or both, in the discretion of the court.