BSP presents witness vs Banco Filipino at DOJ hearing

The Bangko Sentral ng Pilipinas on Thursday presented before a Department of Justice panel a witness to the string of criminal charges it filed against Banco Filipino Mortgage and Savings Bank. BSP lawyer Sandra Coronel said witness Rey Taguinod is the central bank's examiner who discovered Banco Filipino's alleged unsound bank practices that eventually led to its closure last March. "Mr. Taguinod will subscribe to his affidavit charging the officers of Banco Filipino with five different offenses under the Central Bank Act. He is the examiner who looked into the papers and submissions of Banco Filipino. He was able to rate the non-compliant actuations of Banco Filipino and its respective officers," Coronel said in an interview. Banco Filipino has also filed a graft complaint against BSP officials. The DOJ panel led by Senior State Prosecutor Rosanne Balauag is hearing the two complaints the two parties filed against each other. At the hearing on Thursday, Balauag ordered both parties to submit within 15 days their respective counter-affidavits to the charges filed against them. The BSP charged Banco Filipino with the following offenses stemming from its alleged violations of central bank regulations. These include:

• Willful refusal to file audited financial statements for 2002 to 2007;
• Falsification and issuance of false statements to hide the true financial condition of the bank;
• Willful refusal to report directors, officers, stockholders, and other related interest or DOSRI loans;
• Willful refusal to comply with numerous BSP laws and directives; and
• Willful refusal to cease the conduct of unsafe, hazardous, and unsound bank practices.

Banco Filipino, on the other hand, accused central bank officials of committing graft practices. In a 29-page complaint-affidavit, Banco Filipino executive vice presidents Maxy Abad and Francisco Rivera and Banco Filipino stockholders alleged that officials of the central bank violated Republic Act No. 3019, or the Anti-Graft and Corrupt Practices Act. “We accuse the respondents of gross and blatant violation of [RA No. 3019], specifically Section 3 thereof, by denying the grant of emergency loans requested and needed by Banco Filipino under an emergency situation and the eventual closure and receivership of the said bank shortly thereafter," said the complainants. Banco Filipino's closure Last March, the Monetary Board — BSP’s policy-making body — ordered Banco Filipino’s closure and placement under the receivership of Philippine Deposit Insurance Corp. The central bank said the Aguirre-owned bank’s liabilities topped its assets by P8.4 billion. The BSP then ordered that assistance be immediately given to Banco Filipino’s 177,652 depositors. — RSJ, GMA News