Editorial

Heads must roll

IF they accomplished anything at all, this week?s congressional hearings on the Legacy Group gave us one more reason to distrust the regulatory resolve of the government. That is a starting point; it ought not to be the conclusion.

At the Senate, there were revelations?including canceled checks?that Commissioner Jesus Enrique Martinez, who was in charge of regulating the pre-need industry, accepted millions of pesos from the Legacy Group in exchange for going easy on its trust-fund deficiencies. We also learned that Martinez allegedly took P5 million from Legacy owner Celso de los Angeles as a wedding present for his son, so he could buy a house and lot in a middle-class subdivision in Para?aque. All this apparently took place at a critical time, when Legacy?s application for a permit to sell pre-need policies was pending before the commission.

The upshot of Martinez?s failure to properly regulate the Legacy Group is that thousands of hapless consumers were duped into buying pre-need plans that did not meet their needs as De los Angeles? pyramid operation collapsed.

That there was an unacceptable conflict of interest is beyond doubt. There is also no question that the commission failed miserably to carry out its responsibility to protect the investing public. Whether there was a more clear-cut?and illegal?quid pro quo is something that a full investigation must quickly determine. In the aftermath of Monday?s damaging testimony at the Senate, the Palace has ordered Martinez to go on leave pending his investigation by the Presidential Anti-Graft Commission.

Confronted with evidence of his wrongdoing, Martinez?who ironically was nominated to his position by the moralistic Jesus Is Lord Movement?said he is considering resigning?a mere two days before he retires. This is too little, too late and clearly unacceptable. Armed with the new revelations and evidence provided by Legacy executives, the authorities must move swiftly to identify and prosecute those guilty of wrongdoing. Heads must roll.