DAVAO CITY -- The row between President Estrada and Securities and Exchange Commission (SEC) Chairman Perfecto Yasay Jr. has delayed the passage of the revised Securities Act, Speaker Manuel Villar said here yesterday.
This developed as Isabela Rep. Heherson Alvarez urged his colleagues not to rush the passage of the Securities Act pending the completion of the SEC and Philippine Stock Exchange (PSE) inquiries into BW Resources Corp.
Villar said the rift between the President and Yasay has put Congress in an awkward position.
"Nobody minded that bill before. Things went smoothly and they only started asking questions when the President got entangled over certain issues with Mr. Yasay," Villar said.
He admitted it would be hard to set a deadline for the passage of the bill.
"There are over 200 congressmen and when everybody speaks, it will take a long time for that bill to be passed," he said.
Villar pointed out, however, that work on the measure started "a long time ago."
Meanwhile, Alvarez urged congressional probe bodies to let the SEC and PSE do their job first before conducting their own investigations.
"Let us not duplicate what the SEC and the stock exchange are doing. That is a waste of time, effort and government money. It is better that we take off from where these two agencies would end their inquiries," said Alvarez, who is secretary-general of the opposition Lakas party.
Alvarez said the House should not be stampeded into approving proposed changes in the revised Securities Act that would govern the SEC, the stock market and the stock exchange.
He said Malacañang wants Congress to rush the enactment of the draft legislation to pave the way for Yasay's replacement.
Alvarez said lawmakers should await the completion of the SEC and PSE inquiries into the alleged stock manipulation by BW Resources, presidential friend Dante Tan and the company's stock brokers before passing the proposed law.
"The results of these inquiries would be a rich source of information that Congress can use in laying down clearer rules for the conduct of the stock market and improving the quality of this proposed legislation," he said.
He stressed that new revelations are still coming out, the most recent of which is the one by BW president Eduardo Lim Jr.
Lim has admitted that he was a director of Belson Securities, one of several brokerage firms that bought heavily into BW Resources last year, causing its share price to soar from less than P2 at the start of 1999 to P107 11 months later.
Lim, however, clarified that he had already divested his financial interest in Belson.
Alvarez said he and his colleagues must fully evaluate Lim's disclosure, including his supposed divestment.
"Lim's claim that he divested his assets may be insufficient because he may have divested to family members and close associates. An individual who holds office in a family corporation which deals extensively in the stock market could be violating securities rules. There are family holdings which may prove to be a problem area in securities regulations," Alvarez said. --