ROXAS: PIPC SEEMS DESIGNED AS A SCAM
REGULATORS MUST GET THEIR ACT TOGETHER TO PROTECT PUBLIC

Senator Mar Roxas said the $250-million scam involving PIPC Corporation seemed to have been designed as a scam from the very start, to the bewilderment of financial sector regulators and to the detriment of innocent investors.

"Hindi pa tapos ang hearings, pero nakikita nating mukhang talagang may disenyo na manloko ng tao dito sa ating bansa. Papalit-palit ng pangalan ang korporasyon, at marami silang ginamit na pang-akit," Roxas said.

"Ngayon, mukhang sumabog na itong tila ba'y isang pyramiding scam, at nagsitakbuhan na ang mga may pakana nito. Kawawa itong mga kababayan natin na naipit ang kanilang mga ipon at hindi na nila malalaman kung mababawi pa nila ang mga ito," he added.

The Senate Committee on Trade and Commerce, which Roxas leads, conducted its first hearing Wednesday into the PIPC scam based on resolutions filed by Senators Juan Ponce Enrile and Loren Legarda on the matter.

Roxas said PIPC Corp. was registered as a research company, yet it actively sought prospective clients of investment products worth at least $40,000 each, with a promised high return of 12-15% annually. These investments were, however, executed with Performance Investment Products Corporation in British Virgin Islands, which is not licensed to do business in the Philippines.

But he said that not only one company is involved in this issue but many others not only in the Philippines but in other countries such as Japan, India, China and many others, all commonly being owned by Michael Liew, a Singaporean national who disappeared in July this year with the investors' funds.

Roxas said that the laws on investment products must be strengthened to prevent the proliferation of similar "Ponzi" scams. Regulators, such as the Securities and Exchange Commission, must also take a more proactive stance for the public.

"Ang nakikita natin dito ay kulang ang ating batas sa pagkontra sa mga nagnanais na manloko sa ating bansa. There are indications of possible remedial legislation because the laws in the books right now do not reflect the kinds of transactions that are being promoted by these entities," he said, citing, for instance, the lack of laws governing derivatives transactions.

"We also look upon the SEC to adopt a more proactive stance. SEC simply says, 'well, unless there's a complaint, we can't do anything about it.' Of course, during the good times, mataas ang interes, walang nagrereklamo. E pagdating ng panahon na may magreklamo, nagsitakbuhan na at huli na ang lahat," he added.