THE chief investigator in the Senate’s on-going investment scam inquiry found that strategic government agencies, including the Securities and Exchange Commission and the National Bureau of Investigation have been remiss in their duties to check the proliferation of pyramiding, Ponzi and related investment schemes.

Sen. Mar Roxas reached the conclusion after the first hearing on the alleged investment scam allegedly perpetrated by a Singaporean executive of the Performance Investment Products Corp. who is said to have absconded with $250 million of PIPC investors funds.

The trade and commerce committee, chaired by Roxas, conducted the first hearing into the alleged PIPC scam on Wednesday based on separate resolutions filed by Sens. Juan Ponce Enrile and Loren Legarda.

What emerged from the hearing, Roxas reported, was that several personalities led by a Michael Liew were already the subject of complaints from investors since 1999.

“But because of the inability of government agencies to pin down Liew and his cohorts [right away], they were able to continue collecting money from unsuspecting investors using various company names the latest of which was PIPC.

Appearing before Senate investigators, PIPC officers led by general manager Cristina Gonzales-Tuason, however, washed their hands off the scam, claiming they too were victimized and filed separate complaints with authorities when Liew fled with their money.

According to Roxas, while the PIPC was registered as a research company, it actively sought prospective clients of investment products worth a minimum $40,000 each, with a promise of unusually high returns of between 12 percent and 15 percent annually. The Roxas committee also learned that these juicy terms attracted a number of gullible investors including members of the so-called upper crust of society.

Testimonies by PIPC officials confirmed that these investments were then executed with Performance Products Investment Corp. in the British Virgin Islands (PPIC-BVI) which is not licensed to do such business in the Philippines.

Briefing reporters after the hearing, Roxas said laws on investment products must be strengthened to guard against the proliferation of similar Ponzi scams. “What we saw on the first day of inquiry is that we lack the laws to combat defrauders in the country,” he said, adding that there are a number of remedial legislation that could be crafted to plug the loopholes.

For instance, Roxas recommended that the SEC should take a more pro-active stance in dealing with complaints about irregular investment schemes. “The SEC simply says, “well, unless there is a complaint, we cant do anything about it.”

DAVAO CITY—The conviction of former President Joseph Estrada on plunder charges could be the huge morale booster for the Courts, and even the entire justice system, in a country where the people are resigned to corruption as a twin of public service.

THE elaborate and tight security preparations taken by the government in relation to Wednesday’s sentencing of former President Joseph Estrada proved to be a useless undertaking and a waste of taxpayers’ money as not one of the scenarios factored in occurred or took place.

THE chief investigator in the Senate’s on-going investment scam inquiry found that strategic government agencies, including the Securities and Exchange Commission and the National Bureau of Investigation have been remiss in their duties to check the proliferation of pyramiding, Ponzi and related investment schemes.

ZAMBOANGA CITY—Tons of relief goods have arrived in Jolo, Sulu, from Manila for the thousands of evacuees who fled the fighting between government forces and al-Qaeda-linked Abu Sayyaf bandits.

TWO U.S. warships arrived in Manila’s South Harbor on Wednesday and another will dock at the Port of Cebu on Thursday for goodwill activities, including donation of books and medical supplies to poor communities.

THE Supreme Court (SC) on Wednesday affirmed a ruling of the Court of Appeals and the Ombudsman finding a former Education department undersecretary administratively liable in connection with the purchase of vehicles amounting to P21.5 million in 1998 without public bidding.