Congressional Probe Sought On Abra Mining

Stockholders of Abra Mining and Industrial Corp are seeking a Congressional probe into the continued lack of action from both the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE) regarding serious trading irregularities in the mining stock, which have remained unresolved for more than three years.

PSE President Ramon Monzon cited what he termed the "gravest" travesty of justice that Abra Mining has committed against the investors in the market, but investors in the company were left holding an empty bag due to the trading of unlisted shares. I Photo: The Philippine Stock Exchange, Inc. (PSE) Facebook

Stockbroker Victor Dominguez initiated the call for a Congressional inquiry due to the failure of both the SEC and the PSE to formalize charges against the officials of Abra Mining who sold shares that were unlisted and unregistered.

This led to the suspension of trading in the stock, which accounted for 80 percent of trading from January to February 2021.

In a radio-TV interview with Nego-Show over Aliw TV, Dominguez stated that PSE President Ramon Monzon admitted in a letter to the MOST law firm, representing hundreds of investors in Abra Mining, that the stock exchange had concluded its investigation into the trading irregularities in Abra Mining that led to its suspension.

However, no formal charges have been brought against the erring officials.

Monzon, in his letter-reply to MOST law firm in January last year, acknowledged that the PSE found trading irregularities. MOST law had sent a letter to the PSE and the Philippine Depository Trust Corp regarding the status of the investigation on Abra Mining and the findings made so far.

The law firm represents investors in AR who were left holding an empty bag due to the trading of unlisted shares.

According to Monzon, "the PSE has concluded its investigation and noted serious violations of the Company, not only of the PSE Listing and Disclosure Rules, but also of the Revised Corporation Code, the gravest being the lodgment and trading of AR shares which are not yet issued and recorded in the books of the Company and for which no subscription payments were received by the Company."

Monzon specifically cited what he termed the "gravest" travesty of justice that Abra Mining has committed against the investors in the market.

Yet, the PSE has not acted on the matter in terms of exercising PSE's self-regulation organization status, Dominguez said. "Why so? Having found out about the irregularities that occurred two years prior, why has the PSE not moved at all?" Dominguez added.

According to Dominguez, officials of Abra Mining had traded 250 billion shares, though only 99 billion were listed, resulting in its suspension and leaving hundreds of investors who bought the said stock in limbo.

The Congressional inquiry aims to lead to the crafting of legislation that would make it a criminal offense for the PSE or the SEC to delay action on matters concerning trading irregularities.

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