SEC denies approving Permaplans' tea payments

ABS-CBN News

Posted at Jun 01 2009 07:45 PM | Updated as of Jun 02 2009 03:45 AM

The Securities and Exchange Commission denied that it allowed troubled pre-need firm Permanent Plans to give out slimming tea and memorial lots to its plan holders in lieu of cash.

SEC commission secretary Gerard Lukban told ABS-CBN News that Permanent Plans has been misleading the public when the company stated that they had received clearance from the SEC to offer the alternative payment to their planholders.

Lukban said the letter the SEC sent to Permaplans actually called the firm's attention to the complaints they had received about the unacceptable mode by which Permaplans was settling its obligations.

Lukban added that they did not freeze the company's trust fund, but merely required Permaplans to secure clearance from them to ensure their payouts went to the plan holders.

Permaplans has filed a petition for rehabilitation before a court but assures plan holders of payment of its obligations.

Initial hearing on the petition is set for July 27.- with reports from ABS-CBN News