Corruption erases ₱1.7T from market

Securities and Exchange Commission (SEC) Chairman Francis E. Lim pointed to corruption as "a weapon of mass wealth destruction," as investigations into anomalous flood control projects have eroded investors' confidence to the extent that ₱1.7 trillion in market capitalization has been wiped out in just three weeks.

- BY JAMES A. LOYOLA

"The flood control project scandal has shaken public confidence, wiping out an extraordinary ₱1.7 trillion in market value of our publicly listed companies in just three weeks, despite rising corporate earnings," Lim said during the 57th Annual Financial Executives Institute of the Philippines (FINEX) Conference.

He noted that, "Investors aren't fleeing because of weak fundamentals; they're fleeing because of weak integrity. It's a stark reminder that corruption is a weapon of mass wealth destruction. When trust breaks down, capital dries up, and everyone-government, business, and the public-pays the price."

Lim said this is why the SEC sees compliance "not as a bureaucratic hurdle, but as a leadership advantage, a way to strengthen the very foundation of markets and enterprise. Because when markets are trusted, capital flows. And when capital flows, the economy grows."