Because of her stature, President Gloria Macapagal Arroyo should have divested herself of her business interests, particularly her investments in the stock market, a prominent analyst said Tuesday. Commentator and former Cabinet member Solita âMareng Winnie" Collas-Monsod said that Mrs. Arroyoâs ownership of stocks is an ethical issue because she could influence share prices of the companies she invested in. President Arroyoâs Statements of Assets, Liabilities, and Net Worth (SALN) from 1991 to 2008 showed she had investments in the stock market. Stocks, also called shares or equity, represent claims of ownership in a company. âMay nakikita akong something of (an) unethical nature (I see that this is something of an unethical nature), Monsod told GMAâs Unang Hirit in an interview. Vincent Lazatin of the Transparency and Accountability Network agreed with Monsod and said, âI think, as far as public officials are concerned, they are supposed to divest of their business interests. Definitely, thereâs conflict of interest here."
Republic Act No. 6713, also known as the Code of Conduct for Public Officials and Employees, says conflict of interest âarises when a public official or employee is a member of a board, an officer, or a substantial stockholder of a private corporation or owner or has substantial interest in a business, and the interest of such corporation or business, or his rights or duties therein, may be opposed to or affected by the faithful performance of official duty." The law also defines divestment as âthe transfer of title or disposal of interest in property by voluntarily, completely, and actually depriving or dispossessing oneself of his right or title to it in favor of a person or persons other than his spouse and relativesâ¦" Section 7 of RA 6713 also provides that âpublic officials and employees shall not, directly or indirectly, have any financial or material interest in any transaction requiring the approval of their office." Both Monsod and Lazatin cited the danger of âinsider trading" to jack up share prices to benefit her.
P110 million worth of stocks in 2008 A Philippine Center for Investigative Journalism (PCIJ)
report on Monday showed that Mrs. Arroyo first disclosed that she had company shares in 2001, when she reported P7.5 million worth of stocks. âBut this amount disappeared in her 2002 SALN, which showed no entry for stocks. In truth, stocks would not figure in her subsequent SALNs â until 2006, when she began reporting these once more, but without any other details about such," said the report by PCIJâs Malou Mangahas. But in 2006, Mrs. Arroyo reported that the P55 million worth of stocks she owned grew to P62 million in 2007, to P110 million in 2008, which comprised 69 percent of her declared wealth that year. While Mrs. Arroyo did not divulge the companies she invested in, the PCIJ noted: â(President) Arroyo stacked up her stock portfolio even as the global financial crisis sent stock markets tumbling down, and the national economy posted sluggish growth."
No law violated President Arroyoâs lawyer, Romulo Macalintal, said that his client did not violate the 1987 Constitution or any law when she entered into businesses or dabbled in the stock market. Macalintal, who also served as Mrs. Arroyoâs election lawyer, noted that First Gentleman Jose Miguel Arroyo was the one âdirectly involved" in these activities âas head of the family." â
May sarili silang negosyo, pero wala sa Saligang Batas na ang pamilya nila ay âdi pwedeng pumasok sa business (The First Couple have businesses, and the Constitution doesnât prohibit them from doing so)," Macalintal said in a separate interview on
Unang Hirit. Asked what he would advise Mrs. Arroyo on buying stocks, Macalintal said: â
Sasabihin ko na under the Constitution,
walang prohibition sakaling mag-invest sa stocks (I would tell them that under the Constitution, there is no prohibition on investing on stocks)." The First Gentlemanâs lawyer, Ruy Rondain, also said that there was nothing unethical with the First Couple investing in the stock market. Rondain also said that the First Couple did not violate RA 6713, which he said only forbids a government official from âparticipating in any business with the government." In an interview on dzBB radio, Rondain said that even as Mrs. Arroyo and her husband had stock investments, they did not intend to control a private company or gain majority shares. â
Wala namang intent to gain control, di ka naman kukuha ng majority, di ka naman uupo dun sa board of directors (There is no intent to gain control, or the majority of stocks, and to even sit as among the companyâs board of directors)," Rondain said.
-GMANews.TV