MANILA, Philippines — Four high-ranking officials of the Social Security System have been accused of illegal profiteering from stock trading using information from an accredited stockbroker.
SSS Commissioner Jose Gabriel La Viña said that he has filed complaints against officials of the agency for "serious dishonesty and grave misconduct."
Here is what we know about the case so far:
Who?
Four high-ranking officials of the state-run pension fund are now being investigated for allegedly profiting from stock trading using government funds.
They are:
- Equities investment division chief Reginald Candelaria
- Equities product development head Ernesto Francisco Jr.
- Chief actuary George Ongkeko Jr.
- Executive vice president Rizaldy Capulong
The four are involved in approving the accreditation of stockbrokers and allocating trades.
Candelaria tendered his resignation last week, which the board approved. Ongkeko also tried to resign in October, but this has been put on hold due to "pending transition duties."
Francisco and Capulong, meanwhile, have been reassigned to the office of SSS President Emmanuel Dooc as the agency continues its probe into the incident.
READ: 2 execs in stock trading scandal resign
How?
Section 26 of the Social Security Act of 1997 holds that: "All revenues of the SSS that are not needed to meet the current administrative and operational expenses incidental to the carrying out of this Act shall be accumulated in a fund to be known as the 'Reserve Fund.'"
The SSS has is authorized to invest in stock exchange provided that "such investment wills not exceed 30 percent of its Investment Reserve Fund."
This is for revenue generation of the SSS, in anticipation of future liabilities.
Candelaria and Francisco have been accused of buying personal shares using knowledge from a stockbroker who had been accredited to manage the state fund.
Capulong, for his part, approved the stock purchases.
Ongkeko, meanwhile, has been accused of negligence in duty for failing to ensure transparency in the state-run pension fund's transactions.
What now?
Valdez, in an interview with ANC on November 1, said that if the officials are proven guilty of the allegations, their punishment will range from a reprimand to suspension.
The officials may also be dismissed from office.
On Wednesday, Social Security Commission Chairman Amado Valdez assured the public that no government money was used in the suspected profiteering.
The SSS, in a statement on November 2, reiterated that procedures have been institutionalized within the agency to address the complaints against the involved personalities. It also vowed to give due process in its ongoing investigation.
READ: SSS vows fair probe on stock trading