SEC chief retracts claim of P1.7-T market loss due to corruption

SECURITIES and Exchange Commission (SEC) Chairperson Francisco Ed. Lim has withdrawn his earlier claim that recent corruption issues wiped out P1.7 trillion in market value, admitting the information he cited was based on a “fictitious” report.

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“I wish to clarify a statement I made in my speech before FINEX on Oct. 7, in which I cited a report claiming that recent corruption issues had wiped out about P1.7 trillion in market value of publicly listed companies,” Mr. Lim said in a statement issued Thursday evening.

“The information, which had been circulating within business circles and cited by some media outlets, was based on what I believed at the time to be a credible industry report. I have since learned that the report was fictitious. I deeply regret any confusion or concern that my statement may have caused,” he added.

Mr. Lim said his intent was to emphasize “the vital importance of integrity in our markets and the devastating impact corruption can have on investor confidence.”

He said the SEC remains committed to promoting transparency, good governance, and investor protection, adding that corruption is “a weapon of mass wealth destruction.”

The clarification came hours after Malacañang dismissed as “fake news” the SEC chief's earlier statement that corruption scandals had erased about P1.7 trillion from the local stock market.