BY REGINA BENGCO

SECURITIES and Exchange Commissioner Jesus Martinez was ordered by President Arroyo to go on leave over allegations that he received bribes from the Legacy Group.

Arroyo’s gesture is seen as empty, however, because Martinez is retiring tomorrow after serving a full seven-year term in the seven-man body.

Executive Secretary Eduardo Ermita said Arroyo also ordered Justice Secretary Raul Gonzalez and Presidential Anti-Graft Commission chair Constancia de Guzman to conduct a separate investigation.

Carolina Hinola, former chief operating officer of Legacy Consolidated Plans Inc., on Monday told an inquiry conducted by the Senate trade and commerce that the Legacy Group paid for the house and lot of a son of Martinez.

She added Legacy owner Celso delos Angeles habitually bragged about his "friendship" with Martinez.

She said that on Feb. 14, 2006, she and Legacy officials Ricardo Salomon and Namnama Santos met Martinez in a restaurant in Makati on the instruction of Delos Angeles.

"During our lunch, Commissioner Martinez asked if we have any problems with the SEC that he could help us with," Hinola said.

Martinez oversees the SEC Non-traditional Securities and Instruments Department that has direct supervision over pre-need companies.

Hinola said she gave P1,475,000 in cash at the Linden Suites in Ortigas to Martinez on Nov. 9, 2007 upon the instructions of Delos Angeles.

The sum purportedly was in payment for a Ford Expedition bought by a bank affiliated with Legacy but personally used by Delos Angeles.

The Department of Justice issued a hold departure order against Martinez.

"Whether or not he is a flight risk, we just want to make sure that he will be facing the investigations here," Gonzalez told reporters.

Gonzalez ordered the NBI to form a team of investigators to look into any involvement of Martinez in the Legacy Group and if evidence warrants, to file a complaint before the DOJ.

He also formed a task force of prosecutors composed of State Prosecutors Aileen Marie Gutierrez, Romeo DC Galvez and Ramonchito Mendoza to conduct a preliminary investigation against Martinez.

Deputy presidential spokesman Anthony Golez said the probe may "open the floodgates to include other SEC officials."

Golez said Martinez would be stripped of his retirement benefits if found guilty.

He said the investigation is also a way of checking any "loopholes in the SEC system."

Golez said Martinez’ case is an isolated one as there are many SEC officials who are doing their job. "Hindi matitibag ang imahe ng SEC," he said.

He said SEC chairperson Fe Barin still enjoys the President’s trust and confidence.

Press Secretary Cerge Remonde said the Palace welcomes the proposal of the Senate to replace all the SEC commissioners "but iyon ay pinag-aaralang mabuti ng ating Pangulo."

Senate President Juan Ponce Enrile asked President Arroyo to order the resignation of all SEC commissioners.

The other commissioners are Ma. Juanita E. Cueto, Raul J. Palabrica and Thaddeus E. Venturanza.

Enrile said he has already instructed his staff to draft a resolution asking the President to sack all SEC commissioners.

"Lahat sila sapagkat collegial body yun. One is not the commission. So they must share the responsibility for the fiasco," he said.

"It’s collective responsibility. Sabi nga ni Martinez, ‘I am only one commissioner, I cannot influence the decision of the commission.’ Meaning tinatanggap niya na collective effort yung desisyon dun. Ngayon kung yung ginagawa ng isang commissioner di nila nalaman, bakit hindi nila nalaman? At kung nalaman man nila, bakit hindi sila umaksyon?" he added.

He said the resolution will be filed within the week but since Congress is on Lenten recess, the Senate would tackle it when session resumes in the third week of next month.

Former Senate President Franklin Drilon urged President Arroyo not to allow Martinez to continue discharging his functions, even on a holdover capacity, "in order to salvage whatever is left of the Filipino people’s trust on the SEC."

"Martinez should immediately relinquish his position if only to salvage the credibility of the SEC," Drilon said. "There is prima facie evidence that Martinez received bribes from the Legacy Group in violation of the anti-graft law."

"What Malacañang should do is to throw the book at Martinez and his cohorts and direct the Office of the Ombudsman to file graft charges against them," he said.

Drilon said he was outraged by the statement of Barin that Martinez can stay in holdover capacity until Malacañang names his replacement.

"While it was true that as a matter of practice the SEC allows commissioners whose terms have expired to continue serving in a holdover capacity, the same practice should not apply to Martinez’ case," he said.

Sen. Manuel Roxas, trade and commerce committee chair, said the Senate will not close its inquiry into the looming collapse of the pre-need business industry until it has established the liabilities of government officials and private individuals.

Roxas said he will continue the probe for the sake of the thousands of plan holders and depositors whose dreams have been shattered.

"That’s one vote I don’t care losing," Roxas said in reaction to Delos Angeles’ statement that he would vote for "anybody except… you just fill in the blanks."

Roxas said his committee has been deluged with calls from potential witnesses on the illegal transactions of the Legacy Group.

Rep. Joel Villanueva (Citizens Battle against Corruption) said Martinez used to be their party’s third nominee in the 2001 elections but they never heard of him again since.

"He’s not even a member of JIL (Jesus is Lord Movement)," Villanueva said.

Rep. Eleandro Jesus Madrona (Lakas, Romblon), chair of the ethics committee, said his panel could not investigate the accusation that Rep. Eduardo Zialcita (Lakas, Parañaque) was a consultant of Legacy who received P100,000 a month because there is no formal complaint.

Madrona said they can investigate Zialcita only if there is a plenary decision, an order from Speaker Prospero Nograles Jr., a formal resolution of any lawmaker to be referred to the panel, or a complaint by a private citizen.

"Our hands are tied unless one of the four instances is met," he said.

Zialcita has confirmed that his projects benefited from the donations of the Legacy Group but denied pocketing any money.

The SEC has decided to compel Martinez to make an official position on the allegations.

Barin said the commission en banc passed a memorandum that compels Martinez to reply on the issue even if his term as commissioner of the regulatory body expires today.