CA affirms decision clearing Roberto Ongpin of insider trading charges

The Court of Appeals (CA) has affirmed its decision last year clearing businessman and former trade minister Roberto V. Ongpin of insider trading charges involving the shares of Philex Mining Corporation in 2009.

In a July 2 resolution, the CA's Former Special 13th Division denied the appeal of the Enforcement and Investor Protection Department of the Securities and Exchange Commission (SEC) that challenged the CA's nullification of SEC-ordered penalties against Ongpin for 174 counts of insider trading.

The appeals court, through Associate Justice Ma. Luisa Quijano-Padilla, said the grounds raised by the SEC department in its motion for reconsideration were "merely a rehash" of previously passed-upon contentions.

The argument that the SEC properly meted out a P174-million fine to the Marcos-time trade minister as all elements of insider trading were purportedly established in the case likewise did not convince the court, which held that while the corporate regulator is a quasi-judicial body, only its "findings of fact" are binding upon the CA.

"This Court is therefore not bound by the legal conclusions of the former owing to the inherent duty of courts of law to determine legal issues and settle actual controversies," the 5-page resolution said.

Citing existing jurisprudence, the CA said the "materiality of the information" must be made in reference to corporate information and not to market information.

"More importantly, in order to be considered insider trading, the Securities Regulation Code (SRC) requires that the material information must be gained in one's capacity as an insider," it held.

The resolution was concurred with by Associate Justices Samuel Gaerlan and Marie Christine Azcarraga-Jacob.

In December last year, the same magistrates overturned a July 8, 2016 ruling by the SEC that found Ongpin, then a minority shareholder of Philex Mining, liable for insider trading.

The finding and the corresponding penalty -- P1 million for each of the 174 counts -- was reached over the allegation that Ongpin had purchased additional shares to the mining firm while possessing information that Hong Kong-based First Pacific group led by Manuel V. Pangilinan was bidding for a controlling stake.

Ongpin was also ordered to resign from any public company or publicly listed company where he was an officer or a member of the board of directors.

The SEC decision had prompted Ongpin to bring his case before the CA, which halted the penalties pending resolution of the legal dispute and has now twice ruled in his favor. — RSJ, GMA News