SEC Chair Lim apologizes, says P1.7-trillion stock market wipeout report fictitious

Securities and Exchange Commission (SEC) chairperson Francis Lim on Thursday apologized for saying that P1.7-trillion worth of market value was wiped out from publicly listed companies, saying he based his remark on what he believed to be a “credible” industry report.

“I have since learned that the report was fictitious. I deeply regret any confusion or concern that my statement may have caused,” he said.

“My sole intent was to underscore the vital importance of integrity in our markets and the devastating impact corruption can have on investor confidence,” he added.

Speaking before the Finance Executives Institute of the Philippines (FINEX), Lim said the “weak integrity” of the country had caused investors to flee, and that P1.7-trillion in market value was wiped out in just three weeks.

Special Assistant to the President for Investment and Economic Affairs (SAPIEA) Frederick Go on Thursday, however, dismissed the claim as misinformation, and that Lim was quoting a confirmed fake news social media post.

Lim said the SEC is "firmly committed" to transparency, good governance, and investor protection.”

“Corruption is indeed a weapon of mass wealth destruction, and it is in this spirit that I appeal to all sectors to unite behind the Marcos Administration’s strong campaign against corruption,” he added. 

P185 billion

For his part, Philippine Stock Exchange (PSE) president and chief executive officer Ramon Monzon said it was P185 billion in market capitalization that was lost during the three-week period initially referred to.

“That being said, SEC Chairman Francis Ed. Lim is correct in assailing the level of corruption in the country, and its adverse effects on the economy and financial markets,” he said in a statement released Thursday evening.

“The PSE is one with the Administration and our regulator in implementing key reforms meant to enhance and deepen our capital markets further,” he added.— BM, GMA Integrated News