The Abra Mining and Industrial Corporation (AR) stockholders are calling the attention of Congress to investigate the alleged inaction of the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE) regarding the unresolved status of the mining stock.
Victor Dominguez, a stockbroker, impelled a Congressional inquiry into the apparent failure of the SEC and the PSE to formalize charges against Abra Mining executives, as reported by Manila Standard.
This appeal came after executives were accused of selling shares that were unlisted and unregistered, resulting in the suspension of trading.
Additionally, Dominguez believed that a Congressional inquiry would elicit the formation of legislation that criminalized delays by the PSE or the SEC in addressing trading irregularities.
Per Dominguez, Abra Mining officials had traded 250 billion shares, even though only 99 billion were listed. This discrepancy led to the suspension of the stock, leaving hundreds of investors in a scruple.
In an interview, Dominguez also revealed that PSE President Ramon Monzon acknowledged in a letter to the MOST law firm, representing affected investors, that the stock exchange had concluded its investigation into the trading irregularities of Abra Mining. However, no formal charges were filed against the company officials.
Monzon’s letter-reply to MOST law firm in January 2023 admitted the existence of trading irregularities. MOST law, representing investors in AR, sent inquiries to the PSE and the Philippine Depository Trust Corp regarding the status of the investigation and its findings on Abra Mining.
Monzon also acknowledged serious violations by Abra Mining, including breaches of PSE Listing and Disclosure Rules and the Revised Corporation Code. These violations primarily stem from the trading of AR shares not officially issued or recorded, with no corresponding subscription payments received by the company.
Dominguez questioned why the PSE, despite identifying serious irregularities, has not taken any action since discovering the violations two years ago. He criticized the lack of action despite acknowledging the gravity of the situation for affected investors.
