SEC complaint vs Villar Land under review, says DoJ

THE DEPARTMENT of Justice (DoJ) on Monday said the criminal complaint filed by the Securities and Exchange Commission (SEC) against Villar Land Holdings Corp. will first undergo evaluation to determine whether it is ready for preliminary investigation (PI).

“It has to go through evaluation,” Prosecutor General Richard Anthony D. Fadullon told reporters on Monday. “Remember that when cases are filed here, it’s not immediately for preliminary investigation… it’s as if no case has yet been filed technically because it still has to go through study and scrutiny by the panel to determine whether it is appropriate for PI.”

Under the Philippine Rules of Criminal Procedure, a preliminary investigation is an inquiry conducted to determine whether there is sufficient ground to engender a well-founded belief that a crime has been committed and that the respondent is probably guilty thereof and should be held for trial.

“There are ongoing evaluations but as far as the department is concerned, no pronouncements can be made just yet because we do not want to pre-empt the results of the evaluation,” Mr. Fadullon added.

The respondents in the complaint include Villar Land Holdings Corp., its officers and related entities. They face potential charges for alleged violations of Sections 24.1(d) and 26.3 of Republic Act No. 8799, or the Securities Regulation Code, over accusations of market manipulation, insider trading, and misleading disclosures that distorted the company’s share prices and misled the investing public.

On the Philippine Stock Exchange (PSE), Villar Land’s last recorded closing share price was P933 on Jan. 30, before trading was disrupted amid the regulatory developments.

In a statement over the weekend, Villar Land said it has not yet received a copy of the complaint and would respond to all allegations once it formally does.

“Villar Land and its directors will answer all the allegations leveled against them after formal receipt of the alleged complaint,” the company said.

Justice spokesperson Raphael Niccolo L. Martinez told reporters that the SEC may be asked to submit additional evidence “to satisfy sufficiency” requirements if the complaint is found lacking for preliminary investigation.

“If, after submission of additional evidence, it is still not found sufficient, it (the complaint) will then be denied,” Mr. Martinez added.

Villar Land Holdings did not immediately respond to an e-mail seeking comment. — Erika Mae P. Sinaking