A Securities and Exchange Commission (SEC) director has been placed under preventive suspension after he was arrested in an entrapment operation conducted by the National Bureau of Investigation in coordination with the corporate regulator over the alleged extortion of funds from a private corporation.
In a statement on Wednesday, the regulator said the suspension will remain in effect while an investigation is ongoing, as the agency moves to contain the fallout from the arrest of one of its own officials.
Identity undisclosed while probe is ongoing
The SEC, however, declined to identify the official, citing the ongoing probe.
“The SEC takes allegations of misconduct and breach of public trust very seriously. As overseer of the corporate sector and regulator of the capital market, the Commission maintains zero tolerance against unlawful practices within its walls and will not hesitate to take drastic actions against erring individuals from its ranks,” SEC chairperson Francis Lim said.
While the arrest strikes at the heart of the agency tasked with policing corporate conduct and safeguarding investor confidence, the SEC told the business community that its operations would continue uninterrupted.
