KUALA LUMPUR, May 18 — DAP lawmaker Tony Pua today demanded the Securities Commission explain its alleged failure to act on suspected insider trading in a case involving the son of Prime Minister Datuk Seri Najib Razak.

Petaling Jaya Utara MP Tony Pua pointed out that it has been three years since the Securities Commission (SC) pledged to probe into the allegation but no update has been given to this day.

“Now, I want SC to give the results of its investigation because we saw cases of insider trading where SC actually hauled those to court... but that was one of the cases where SC have failed to provide answers,” Pua said when debating Amendments to the Capital Markets and Services Act.

Three years ago, Pua demanded the Securities Commission investigate the stock activity of Supercomnet Technologies Bhd, which he claimed smacked of manipulation and insider trading.

The ACE-listed Supercomnet saw its stock price rally from 12.5 sen on March 20, 2012 (Tuesday) to 29.5 sen (Friday) and hit a peak of 58.0 sen on the very next trading day on March 26, 2012 (Monday).

The spike on Monday represented a 96.6 per cent increase in price over Friday’s closing or a more spectacular 362 per cent increase over Tuesday’s close. The stock closed at 49.5 sen on Monday.

The Petaling Jaya Utara MP said when queried by Bursa Malaysia over the unusual stock activity, Supercomnet had only responded on Monday after trading hours that the major shareholders of the company had the day before signed “an Agreement with Mohd Nazifuddin Bin Mohd Najib to give an option [to Nazifuddin] for the purchase of 45,357,000 ordinary shares of RM0.10 each at RM0.225 per share, representing 18.66 per cent of the issued and paid-up capital of Supercomnet.

The announcement caused the stock to rise further the next Tuesday morning to 52.5 sen before a collapse to 36.0 sen at the close.

Pua said what was shocking was that after trading hours, Supercomnet announced that “it had on March 27, 2012 received a letter dated March 27, 2012 from En. Mohd Nazifuddin Bin Mohd Najib indicating that he will not be pursuing the option to purchase the 18.66 per cent stake in the Company as stated in the Option Letter”.

This has resulted in a further collapse of the stock to 22.5 sen.

The DAP leader said Nazifuddin’s bizzare U-turn on the acceptance of the “option to purchase” 18.66 per cent of the company, only to reject it within 48 hours is clearly suspicious must be immediately investigated.

The SC said it would investigate the matter.