MANILA, Philippines - The Securities and Exchange Commission (SEC) has raised red flags on the business operations of Antonio Tiu, who has claimed ownership of a Batangas estate that is allegedly part of the hidden wealth of Vice President Jejomar Binay and his family.
In a report submitted to the Senate last Monday, the SEC cited “incomplete disclosures” pertaining to Tiu’s Agrinurture Inc., Agrifortuna Inc., Greenergy Holdings Inc., Sunchamp Real Estate Development Corp. and Earthright Inc.
Teresita Herbosa, SEC chairman, said the commission has required each of the five firms to explain in writing – in addition to audit committee resolution – how they dealt with the findings and the corrective measures undertaken to comply with proper procedures.
“If the explanation is not meritorious, each company shall be assessed with penalties based on materiality tests under SEC Memorandum Circular No. 8, Series of 2009,” Herbosa said.
The directive was contained in a two-page letter, along with six annexed documents, submitted by the SEC to the Senate Blue Ribbon subcommittee investigating the alleged anomalies in Makati City when Binay was still mayor.
In a scrutiny of the consolidated financial statements as of Dec. 31, 2013, the SEC report showed that there were incomplete disclosures on leases of Greenergy Holdings (i.e. reconciliation between the total of future minimum lease payments and their present value).
There were also incomplete disclosures noted in related-party transactions, the SEC said, adding that these entail the description of transactions, information about transactions and commitments.
During the Senate inquiry Tiu had admitted that portions of the property in Rosario, Batangas are being leased to the Binays for their piggery and orchid business.
Tiu also maintained that Sunchamp has gained majority shares of the Batangas property.
Based on the Sunchamp Real Estate Development Corp. (SREDC)’s General Information Sheet as of 2014 filed on July 14 this year, the SEC noted that Greenergy has 62.39 percent ownership over SREDC.
Considering the ownership, the SEC said the company should have counted SREDC as subsidiary as of June 30, 2014.
The SEC review also noted that Sunchamp did not have disclosures on investment in stocks as well as on its inventories. There is also incomplete disclosure on “construction-in-progress” to cover the nature of assets being constructed, estimated cost to complete and percentage of completion as of reporting period.
Trillanes vs Tiu
Tiu has asked the Quezon City court handling his P5-million civil suit filed against Sen. Antonio Trillanes IV to junk the lawmaker’s motion to dismiss for procedural lapses.
In a six-page manifestation, Tiu through the Gabionza De Santos & Partners law firm said the motion to dismiss filed by the senator is procedurally infirm and improper and should not be taken cognizance of by the court.
They cited Section 1, Rule 16 of the 1997 Revised Rules of Civil Procedure, which said a motion to dismiss must be filed “within the time, but before the filing of an answer to the complaint.”
Trillanes through the Chan Robles and Associates law firm included the motion to dismiss in his 29-page answer to Tiu’s civil case.
Also included in the document that was submitted to QC Regional Trial Court Branch 101 was a P6.5-million countersuit against the businessman, whom he accused of being a dummy of Binay.
The senator said his accusation that Tiu is a dummy is anchored on the fact that he failed to establish that he is the “absolute owner” of the Batangas property.
In the manifestation, Tiu’s lawyers said Trillanes also committed a procedural lapse for failing to include a notice of hearing when they filed the motion to dismiss.
“A motion without notice of hearing is pro forma, a mere scrap of paper. It presents no questions, which the court could decide,” read the manifestation.
“The court has no reason to consider it and the clerk has no right to receive it,” it added.
The civil case stemmed from the initial P5-million civil case filed by Tiu against the senator for accusing him of being a dummy of Binay. – With Janvic Mateo