Osmeña to MVP: 'You can recover hundreds of millions
of pesos in Ongpin short-swing profits'

The management and shareholders of Philex Mining Corp., led by tycoon Manny V. Pangilinan, can recover the hundreds of millions of pesos in short-swing profits that businessman Roberto V. Ongpin unduly earned from trading Philex shares, Sen. Serge Osmena said today.

Osmena, Chairman of the Senate Banks, Financial Institutions and Currencies committee, said this can be done by filing a lawsuit against Ongpin to recover the short swing profits he made, then as a Philex Director, pegged at a minimum of P412 million by the Commission on Audit.

According to Section 23.2 of the Securities Regulation Code (SRC): "For the purpose of preventing the unfair use of information which may have been obtained by such beneficial owner, director, or officer by reason of his relationship to the issuer, any profit realized by him from any purchase and sale, or any sale and purchase, of any equity security of such issuer within any period of less than six (6) months, unless such security was acquired in good faith in connection with a debt previously contracted, shall inure to and be recoverable by the issuer, irrespective of any intention of holding the security purchased or of not repurchasing the security sold for a period exceeding six (6) months."

Osmena said the law states that Pangilinan, as the majority shareholder of Philex, can claim on behalf of the mining firm the short-swing profits that Ongpin earned in late 2009.

He, however, said Pangilinan only has until December 7 (Wednesday) to file the recovery suit, since the SRC mandates that any claw back action should be done within 2 years from the date that the short-swing profit was realized.

"Manny Pangilinan has to act fast, or else Philex would virtually be waiving its right to get back the hundreds of millions of pesos in short-swing profits that Ongpin made," Osmena said.

If Pangilinan fails or refuses to go after Ongpin, the SRC states that 60 days after asking the issuer or majority shareholder/s to file such suit, minority stockholders "in the name and in behalf of the issuer (Philex Mines)" can move to recover the short-swing profits. However, the said suit should be filed also within the two-year period.