Ongpin: No insider trading in MVP affidavit

Businessman Roberto Ongpin. INQUIRER file photo

Businessman Roberto Ongpin on Sunday countered the contention of Senator Sergio Osmeña III that an affidavit made by businessman Manuel Pangilinan “pins down” the former trade minister on insider trading charges.

In a telephone interview with the Philippine Daily Inquirer, Ongpin said there was nothing in the sworn statement of Pangilinan, chairman of Philippine Long Distance Telephone Co., that supported the claim of Osmeña, who has been leading the investigation of the activities of Development Bank of the Philippines (DBP) under the Arroyo administration.

“If anything, Mr. Pangilinan’s affidavit supports my stand that there has been no insider trading in the Philex [Mining Corp.] transaction,” Ongpin said. “The affidavit’s contents are the exact opposite of what they say.”

The Inquirer obtained a copy of Pangilinan’s affidavit dated October 24 over the weekend. In it, he narrates how the deal to acquire a controlling stake in the country’s largest mining firm from Ongpin unfolded, including key dates on which he “believes” he met with representatives of Ongpin’s group to negotiate the transaction.

The affidavit makes no conclusions about the nature of the deal but merely narrates how it transpired, based on his recollection.

“I’m happy that Senator Osmeña said he will make the affidavit public because everyone will see for themselves that there’s no insider trading,” Ongpin said. “Even Senator [Juan Ponce] Enrile says that the affidavit is a ‘factual statement with no conclusions.’”

Osmeña had told the Inquirer earlier that this affidavit—taken together with supposed transactions that occurred after the deal was sealed—offered proof that Ongpin and former DBP president Reynaldo David had engaged in insider trading of Philex shares.

Insider trading happens when someone makes an investment decision to make a profit or avoid a loss based on information that is not available to the general public

Earlier reports said Ongpin obtained two loans from DBP in 2009—an initial loan of P150 million and a second loan of P510 million. He used the second loan to acquire 50 million Philex shares from DBP.

David told the Inquirer that the transaction in question was an acquisition by DBP of shares from its wholly owned subsidiary in order to consolidate their holdings in the mining firm that would also be sold to Pangilinan.

Osmeña and Enrile are crying foul over how Ongpin managed to obtain the Philex shares from DBP for P12.50 each and later selling these to Pangilinan at P21.

Enrile said Ongpin originally wanted P27 per share for the Philex shares sold to Pangilinan, but the two eventually settled at P21.

Enrile said the affidavit showed that Pangilinan had agreed to buy the Philex shares from Ongpin at P21 each before Ongpin took out the second loan from DBP in November 2009.

Pangilinan was able to gain control of Philex Mining because of the shares he bought from Ongpin.

Ongpin said the pressure being exerted on him by senators was on account of his friendship with Jose Miguel “Mike” Arroyo, husband of former President Gloria Macapagal-Arroyo, in an effort to pin her down for alleged wrongdoing during the previous administration.

“But Mr. Arroyo had nothing to do with this transaction, so I don’t know why they’re doing this,” Ongpin said.

He also questioned Osmeña’s withholding of the affidavit’s details from the public during the last Senate hearing about the DBP controversy last month, even as the senator said he was already in possession of Pangilinan’s statement as early as October.

“If they had brought it up during the last hearing which I attended, I would have been able to respond to it,” Ongpin said.

“Instead, this comes out now when I’m abroad with only a limited chance to reply. I have to hand it to Senator Osmeña. His timing is impeccable.”