Jams Mart counters SEC statement, says permit secured in January

Jams Mart on Wednesday countered the Securities and Exchange Commission's (SEC) claim that it has been offering franchises to the public without the necessary permits, with the convenience store operator saying it was merely involved in a "co-ownership" program.

According to Jams Mart president and chief executive officer Niño Luis Jamili, the company was informed by the SEC on January 7, 2021 that its application to be registered as a one-person corporation was already approved, as he questioned an advisory released by the corporate regulator this week.

The SEC on Tuesday said Jams Mart has been offering investments to the public through its franchise investment program without the necessary registration either as a corporation or as a partnership, but Jumali said the corporation already received the confirmation via email and that fees have already been paid to the regulator.

"License was duly approved by them already. It was not a decision made by us. It came from them. They are just denying it right now. In regards to solicit investment, that is in our secondary purposes that we can raise funds in order to tap for the planned programs to happen so that is a co-ownership," Jumali said in a phone interview.

"In fact we followed all the guidelines that we would not be required to come up with a secondary license because secondary license is really to crowdsource funds and ano, so they're just making illegal things legal. So kami, wala naman kaming ginagawa illegal, we follow all the guidelines na hindi na namin need na mag-produce pa ng secondary license," he added.

In its earlier advisory, the SEC said that the Jams Mart group promised investors returns of up to 300% per year—that those who put in P75,000 would get 5% of shares, which would then guarantee a 7% monthly interest or P5,250, monthly sale shares of P4,750, and a fixed dividend of P4,750 for a total annual return of P225,000; and that investors who put in P1.5 million for the 100% franchising agreement would get 10% monthly interest and a 15% share in the monthly earnings to total 300% returns for an entire year.

"We do provide contracts to our co-owners. There is no such thing as 10% per month, there is no such thing as... the numbers there are ano, kumbaga inano nila ano, talagang they increased the numbers," Jumali said when asked to respond to the allegations.

"Obvious talaga, it's just a personal attack. Wala siya talagang, wala siyang ano no, and all the information stated in your report which I guess you took also from the SEC are all false, they're all allegation, hearsay. Hindi po totoo 'yun although we offer good earnings," he added.

Jumali said, however, that Jams Mart targets a 40% growth in earnings per month, of which 25% is given to the investors. This co-ownership program, he said, had been in operation since September and had generated P16.8 million until it ended on January 31 this year.

"So now I would like to ask you, is it some kind of investment scam? No, no, it's far from that. Natatawa na nga ako dahil sabi ko baka iniisip ng mga tao bilyon ang pera namin dito dahil investment scam or anything. Hindi po, ang na-receive namin, kahit tignan niyo pa 'yung libro namin, less than 20 [million pesos], to be specific around 16.8 million [pesos] lang and we're not worried with that because we're going to own 30 outlets, we're going to open 30 outlets this first half of the year," he explained.

The company's president said he was also surprised by the SEC advisory, as representatives assured him that the company already secured the necessary permits to operate.

"Hindi po pupwede 'yun kasi there is no such as thing in the government na binabago mo 'yung ano mo, 'yung initial approval mo kasi except kung we have violated something. If we violated something, they should have conducted an investigation first kasi hindi naman pwede i-revoke or cancel anything that you have approved kung hindi ka nag-ko-conduct ng investigation or else it would be very unfair. Very unfair talaga actually," he said.

"In fact right now, kami po ngayon ang pwede mag-question sa SEC. Bakit niyo hindi tinuloy 'yung approval? Ano ba, may problema ba? Ano ba, may nagawa ba kaming ano kasi walang investigation na nangyari, not even inquiry, so very unfair talaga," he elaborated.

Jumali said he was also considering filing cases against the SEC for what he called "fake news," as well as the news agencies that carried it.

For its part, the SEC on Wednesday stood by its original advisory indicating that Jams Mart lacked the necessary papers. It was not immediately able to confirm Jumali's claims that a certificate was already granted to the corporation.

"As far as the Commission is concerned, the advisory remains. The advisory is directed to the public, advising them to exercise caution in dealing with individuals or groups soliciting investments on behalf of and for JamsMart, which has not been issued the necessary license to offer securities for sale or solicit investments from the public," it said in a separate statement to GMA News Online.

"The Commission also reiterates that the co-ownership program that JamsMart itself described in its letter partakes of the nature of an investment contract, which is a form of security that must be registered with the SEC before they could be offered to the public," it added. — BM, GMA News