PHILIPPINE stock market investors lost P1.7 trillion in just three weeks because of corruption behind anomalous flood control projects, according to the Securities and Exchange Commission (SEC).
Francis Lim, chair of the SEC, recently told financial executives the billion-peso flood control project scandal had already shaken public confidence, impacting the country’s overall growth prospects.
“It’s a stark reminder that corruption is a weapon of mass wealth destruction,” the official said during his speech at the annual conference of the Financial Executives Institute of the Philippines (Finex).
“When trust breaks down, capital dries up, and everyone — government, business and the public — pays the price,” he added.
The chief of the corporate watchdog also said the “laggard” market reflected a “crisis of confidence” and that public servants needed to rebuild trust to ensure economic growth.
SEC, a member of the Anti-Money Laundering Council through Lim, recently voiced its support for the lifting of the bank secrecy law to aid in the government investigation into the flood control projects.
Lim clarified, however, that Congress would need to determine whether a full lift would be beneficial, or if there should be certain exemptions. (Meg J. Adonis © Philippine Daily Inquirer)
