January 24, 2000, The Philippine Star, Yasay bad for stock market - Estrada, by Paolo Romero,

January 24, 2000, The Philippine Star, Yasay bad for stock market - Estrada, by Paolo Romero,

Quit, and save the stock market.

President Estrada said yesterday investor confidence in the local stock market will be restored if Securities and Exchange Commission (SEC) Chairman Perfecto Yasay Jr. steps down.

"He (Yasay) is not only destroying my credibility but (also) affecting the stock market," Mr. Estrada said.

This developed as Senate Minority Leader Teofisto Guingona Jr. branded as "illegal" the President's call on Yasay to inquire about the SEC's probe of alleged price manipulation by Best World (BW) Resources last October.

Presidential Spokesman Fernando Barican clarified that the President's latest attack on Yasay was not meant to force the SEC chairman to resign but merely an honest response to reporters' questions.

Barican said Mr. Estrada considers reforms in the SEC and the Philippine Stock Exchange (PSE) crucial to jump-start the economy.

The President claimed that businessmen and Yasay's own colleagues were dissatisfied with the SEC chief's performance.

"It goes to show that his leadership and his rapport with the other commissioners are not good. There must be something wrong with his kind of leadership," Mr. Estrada said.

The Chief Executive has revealed that he is eyeing former Negros Oriental Rep. Magarito Teves as replacement for Yasay in case the latter resigns.

The row between the President and the nation's chief regulator erupted anew following Yasay's testimony last week before the Senate committee on banks, financing institutions and currencies. Yasay told the committee that Mr. Estrada called him up and asked why he was investigating BW. The President reportedly said the probe was upsetting the stock market.

While Yasay admitted that the President did not categorically order him to call off the investigation, he said he felt the call was tantamount to political pressure.

Mr. Estrada reportedly told Yasay that BW majority stockholder Dante Tan was more of a victim than an offender in the alleged price manipulation of BW shares in the PSE.

The President admitted calling up Yasay and PSE president Jose Luis Yulo Jr. but denied ordering them to clear Tan. The Chief Executive said he merely urged Yasay and Yulo to speed up their respective probes on BW.

Barican said there was nothing wrong with the President calling up Yulo to discuss an investigation involving Tan, who allegedly contributed to Mr. Estrada's campaign in the May 1998 election.

"The President can talk to anybody. This is a ridiculous thing...what do you want him to do, lock himself up in his office and not meet the public and only his Cabinet?" Barican said.

Meanwhile, Guingona said the word war between the President and Yasay, as well as the controversial membership of Bangko Sentral ng Pilipinas Governor Rafael Buenaventura in the Economic Consultative Commission (ECC), could scare away potential investors.

Guingona said the President's calls to Yasay were an apparent attempt to influence the outcome of the SEC probe and did not help enhance investor confidence in the Philippine stock market.

While Guingona acknowledged that Mr. Estrada could call up Yasay, the senator said the President should not discuss with the SEC chief cases being investigated by the corporate regulatory agency.

"The SEC is a quasi-judicial body. What the President did was illegal," Guingona argued.

He also asserted that Buenaventura's inclusion in the ECC would not help regain investor confidence in the local market.

"The President has the power to reorganize and to transfer functions but not to create positions like in the ECC, especially since it duplicates functions of the National Economic and Development Authority," Guingona stressed.

In another development, House Majority Leader Eduardo Gullas echoed earlier calls by pro-administration lawmakers for Yasay to resign "out of delicadeza."

Gullas said Yasay has lost not only the trust of the President but also of the business sector.

"The integrity of the SEC chairman must be beyond reproach. Now that Mr. Yasay's credibility is severely undermined by his flip-flopping, then he should promptly resign out of courtesy. That's the only honorable way," Gullas added.

He clarified that Yasay's security of tenure is not at issue. "The issue here is he has ceased to be an effective SEC chairman."

Yasay's seven-year tenure expires in 2004.

However, the SEC chief said he would give up his post immediately after Congress passes the proposed Securities Act of 1999. -- With reports from Efren Danao, Liberty Dones