Top officials of Abra Mining have been slapped with a P560 million fine as the company itself is facing involuntary delisting over the illegal sales of unlisted shares from 2015 to 2019.
The Securities and Exchange Commission (SEC)’s Markets and Securities Regulation Department found Abra Mining guilty of violating the Securities Regulation Code and the Revised Corporation Code when regulators found discrepancies in the company’s shares lodged with the Philippine Depository and Trust Corporation (PDTC).
Investigations found that Abra Mining had P258.96 billion worth of shares in the PDTC’s records, but only P72.95 billion was listed on the Philippine Stock Exchange (PSE). Additionally, the company’s total shares in its registration statement were only at 95 billion, but its internal corporate documents totaled nearly 300 billion issued and subscribed shares, with 169 billion illegally-issued shares over the 4 year period, covering 474 stock certificates.
Officers of the company were also found issuing shares at less than their listed price, including Abra Mining president James Beloy, corporate secretary Amelia Beloy, Directors Conde Claro Venus, Carmelo Rafael Tansengco, Premy Ann Beloy, and Joel Beloy, and former director Belinda Gaskell. Said board members were fined varying amounts from P400,00 to P47.4 million.
Abra Mining’s stock transfer agent, Asian Transfer and Registry Corporation and its officers, were also found guilty of violating the Securities Regulation Code by falsely claiming that the shares could be lodged despite prior knowledge of the shares’ flaws.
The SEC earlier revoked Abra Mining’s registration statement and certificate of permit to offer and sell securities, and the company itself has been delisted as part of the latest verdicts.
The PSE’s delisting rules indicate that an involuntarily delisted company cannot apply for relisting within five years from delisting. Directors and executive officers are also disqualified from becoming part of any company applying for listing during the same time.
