No reply yet from SEC exec over reports son received a house from Legacy

MANILA, Philippines - A Securities and Exchange Commission (SEC) official has yet to submit his explanation after his son was alleged to have received a house and lot from the Legacy Group, a company currently facing fraud charges. Commissioner Jesus Enrique G. Martinez, who officially retired from the SEC on Thursday, has yet to explain the allegations against his son, the agency said. Until his retirement, Martinez was in charge of the department regulating pre-need companies. He was appointed to the SEC in 2002. Besides owning rural banks – a number of which have been taken over by the government – the Legacy Group also offers pre-need plans through its various subsidiaries. “As of now, we are just awaiting who Malacañang will appoint to replace [Martinez]," Gerard Lukban, SEC commission en banc secretary, said. Although he refused to provide details regarding Martinez’s case, Lukban admitted that the commission discussed the matter “in passing." Martinez went on leave this week, heeding President Gloria Macapagal Arroyo’s advice that was issued publicly. Earlier, the SEC has asked Martinez to come out with an official statement on allegations that he received gifts from the Legacy Group. SEC chairperson Fe Barin said that the Commission en banc, sans Martinez, has come out with a memo compelling Martinez to reply to the issue even if his term as a commissioner expires next week. "This is to give him a chance to clarify his name... (and) depending on his submission, the SEC will decide (whether to conduct) an investigation or not," said Barin. The decision requiring Martinez to reply is a part of the SEC's commitment to the Senate to investigate allegations hurled by a Legacy employee Monday about the company's acquisition of a house and lot that was later given as a gift to Martinez’s son. Carolina Hinola, former chief operating officer of Legacy Consolidated Plans Inc., said that the house and lot was in exchange for the latter’s assistance in the renewal of a dealership license in 2008. Barin said the SEC will also submit a report to the Office of the President. - GMANews.TV