'Gaite appointment won't add credibility to SEC'

MANILA, Philippines - Senators assailed yesterday the appointment of Senior Deputy Executive Secretary Manuel Gaite to the Securities and Exchange Commission (SEC), saying it would not add any credibility to the agency, which is facing many controversies at this time.

Malacañang has declined to confirm Gaite’s appointment.

Gaite, however, has reportedly admitted that Executive Secretary Eduardo Ermita informed him of his appointment but he has yet to see his appointment papers.

Gaite was the controversial Palace official who gave P500,000 to national broadband network (NBN) scandal whistle-blower Rodolfo Lozada Jr.

He would reportedly replace retiring SEC Commissioner Jesus Enrique Martinez who was forced to go on leave for allegedly receiving lavish gifts, including a house and lot, from controversial Legacy Group owner Celso de los Angeles.

Angeles was charged with defrauding thousands of banks depositors and plan holders through his firms.

Senators Alan Peter Cayetano, Richard Gordon and Manuel Roxas II said Malacañang was wrong in appointing Gaite because of his alleged involvement in the effort to stop Lozada from testifying on the NBN deal.

Cayetano said now more than ever, “people need to believe in the SEC because of the pre-need companies’ failure and the Legacy scam,” and thus it should have credible people.

Gordon said Gaite’s appointment was apparently a reward and an indication that Malacañang was “keeping everyone” involved in the NBN deal “close to their chest” so they would not speak out.

He said it had been the trend for the Palace to appoint people who would work in their favor, like Ombdusman Merceditas Gutierrez, who has been accused of sitting on or filing weak cases against leaders and allies of the administration like former agriculture undersecretary Jocelyn “Jocjoc” Bolante, who was appointed to the Government Service and Insurance System despite his involvement in the fertilizer fund scam. 

Gordon also does not find Gaite to have extraordinary credentials to be part of the SEC “and his involvement in a controversy should have further discouraged the Palace from putting him in the SEC.”

Roxas said it was a wrong choice because the “SEC needs credibility, strong and clear leadership and (should not be a) dumping ground for political favors.”

No comfirmation yet

Press Secretary Cerge Remonde admitted that President Arroyo had already made her choice on Martinez’s replacement, but the formal announcement would be made next week.

“I can neither confirm nor deny at the present time (the appointment of Gaite). I would have to admit that the choice has been made but let us wait for the formal announcement,” Remonde said.

The announcement is expected to come on Wednesday at the latest, during the weekly press conference of Ermita when new appointees are usually revealed.

Martinez is now the subject of probes being conducted by the Department of Justice and the Presidential Anti-Graft Commission in relation to the allegations raised against him.

Malacañang has said that Martinez would not be spared from charges even though he has already retired. – Aurea Calica, Marvin Sy