Ombudsman asked to probe 'sweetheart deal' between Villar firm, BSP

A senatorial candidate of the Liberal Party on Tuesday asked the Office of the Ombudsman to probe a P4.5-billion "sweetheart deal" between the Bangko Sentral ng Pilipinas and a bank owned by Senator Manuel Villar Jr. In a letter of complaint to Ombudsman Merceditas Gutierrez, Akbayan Rep. Risa Hontiveros-Baraquel said the Ombudsman should look into the the P4.5-billion emergency loan granted by the Central Bank to Villar's Capitol Development Bank (now Optimum Bank) in 1998 for possible plunder and violation of anti-graft laws. "Villar could be liable for plunder, graft and corruption, and violation of the Bangko Sentral ng Pilipinas Charter if he will not be able to explain this 'sweetheart deal' with the Central Bank," said Hontiveros. Hontiveros earlier said the Central Bank granted the Villar-owned bank's request for loans even though some of the Central Bank's strict requirements for emergency loans were not met. [See: Villar bank illegally secured P4.5-B loan from BSP, party-list group claims] Some of the lots used as collateral were found to cover cliffs and timberland considered public domain, Hontiveros said. She said "fake" titles for lands in Norzagaray in Bulacan, which farmers are claiming to be rightfully theirs, were also used as collateral. "Villar has a lot to explain to the people, it's the Bangko Sentral's funds that is involved here," said Hontiveros. Villar’s camp had earlier said Capitol Bank’s transaction with the BSP more than 10 years ago was no longer an issue. In a press statement, Villar's lawyer Nalen Rosero-Galang said the Office of the Ombudsman had earlier dismissed a case against Capitol Bank involving the same transaction. "Obviously, the revival of this ancient issue is to divert the attention away from the real and more compelling issues surrounding the 2010 elections," she said. Rosero-Galang said the properties transferred to the BSP were all covered by titles duly existing on file with the Registry of Deeds. "To date, no case is pending or has been filed in any court questioning the validity of the titles of BSP or of its predecessors-in-interest. The titles of BSP have not been declared null and void by any court," she said. She said that if the alleged claimants indeed have valid claims on the properties, the proper remedy is to file an action in court for the nullification of the titles of BSP. "They should get an order from the court declaring that they have better titles to the subject properties. They cannot by themselves declare that the BSP titles are ‘fake’. They have an available remedy in court. Unfortunately, the farmers are unwittingly allowing themselves to be used by the opponents of Senator Villar," Rosero-Galang said. — Johanna Camille Sisante/RSJ, RJAB Jr., GMANews.TV