Presidential investment czar Frederick Go on Thursday, October 9, clarified that reports claiming the corruption scandal caused the Philippine market to dive were false, even if Securities and Exchange Commission (SEC) Chairman Francis Lim himself was the one who cited them.
During the Financial Executives Institute of the Philippines conference, Lim said that P1.7 trillion was wiped out from the Philippine Stock Exchange (PSE) due to the corruption issue. This represented a 12% decline in the market.
Go said that Lim cited false information.
‘Unfortunately, the Securities and Exchange Commission chairman was quoting from a confirmed fake news socmed post designed to catch attention and falsely sensationalize,’ Go said in a press conference in Malacañang Palace.
Go said he also confirmed this with the PSE president himself.
The only legitimate drop in the PSE was 1.6% from August 11 to 29. Go also cited Inquirer’s Biz Buzz, which debunked the P1.7-trillion meltdown as early as September.
As far as Go knew, there were also no businesses that pulled out their investments in the country because of the corruption issue.
‘I think sometimes when there is unpredictability in the environment, people might temporarily think about their investment projects. But we’re quite confident that when this is all resolved, they will all come back. So, they have not pulled out. They will continue rather, that they will continue with their projects,’ Go said.
Go declined to comment on whether Lim will face any consequences for sharing misinformation in a public forum.
Addressing the US State Department’s report that found corruption as a barrier to investment in the Philippines, Go said that this is nothing new.
Red tape and corruption have long been flagged by other international chambers and groups, he said.
The difference now is that the administration is more keen on addressing the matter, Go said.
‘This administration sees the fight against corruption and red tape as a core part of its economic strategy. Again, the president himself initiated the current investigation as a catalyst for governance reform and to address long-standing issues decisively,’ Go said.