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De los Angeles faults BSP anew for collapse of rural banks


MANILA, Philippines - Businessman Celso de los Angeles Jr. on Monday accused a former incumbent officials of the Bangko Sentral ng Pilipinas (BSP) of harassment even as the central bank said it has not filed a case against him for the spate of closures of rural banks. At the resumption of the House committee on banks and financial intermediaries, De los Angeles also blamed an incumbent central bank official for contributing to the collapse of his rural banks under the Legacy Group. GMA News’ Ivan Mayrina reported on QTV’s Balitanghali that De los Angeles said Efren Reyes, brother of former BSP deputy governor Alberto Reyes, owed him some P1.4 million. De los Angeles alleged that whenever he would demand the payment from Efren Reyes, the BSP would conduct a special audit on his banks. But Alberto Reyes said he has “no personal knowledge of any alleged transaction" between De los Angeles and his brother and that he has not been privy to his brother’s agreements. “The allegation of special audit, which implies, harassment on my part, is factually and legally baseless," Alberto Reyes added. De los Angeles also accused incumbent BSP deputy governor Nestor Espenilla Jr. of blocking the implementation of his business plans, which the businessman said could have prevented the closure of the rural banks. Espenilla denied these allegations as he tagged the Legacy Group as an “organized syndicate" in the country’s banking and financial system. Espenilla also bared the group’s alleged scheme. He said that the Legacy Group would entice the public with “tantalizing promises" that it cannot meet. When the banks eventually collapse, Espenilla said the group will “make a clean getaway by selling out the banks to new investors." “The PDIC [Philippine Deposit Insurance Corporation] and the tax payers will all be left holding the proverbial empty bag," Espenilla said. The banks under the Legacy Group were shuttered and placed under the receivership of the PDIC in December for insufficient capital, poor liquidity and for practicing unsound and unsafe banking practices. The PDIC had earlier estimated it needs to shell out a total of P14 billion to the banks’ depositors. No raps filed vs De los Angeles Also during the hearing, lawmakers grilled the BSP for not including De los Angeles among the respondents in the string of charges filed against Legacy Group officials. But BSP Office of the Special Investigation director Alfonso Penaco IV explained they still have yet to complete its investigation on the matter and that there is still not enough evidence to implicate De los Angeles. Last weekend, the BSP said it has filed cases against officers and employees of four rural banks under the Legacy Group, initiating the process for possible criminal charges before the courts. BSP governor Amado Tetangco Jr. said 116 counts of falsification of public and commercial documents were filed along with two counts of false statements against 18 officers, employees, and agents of four rural banks belonging to the Legacy Group. Earlier during the day, the Justice Department said it has set up a panel to look into the charges lodged by the BSP against the Legacy Group. - GMANews.TV
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