Ongpin no-show at Senate probe on DBP behest loans

Roberto Ongpin, the businessman whose companies allegedly engaged in large scale financial deals using behest loans extended by the Development Bank of the Philippines (DBP) to its former officials, on Friday failed to show up before the Senate blue ribbon committee's investigation on the issue. During the Senate blue ribbon probe, Ongpin's lawyer Alex Poblador said his client was out of the country. "He conveys his regret for not being able to attend but he would be pleased to attend if the hearing would be scheduled after October 25 when he comes back," Poblador said. He also requested Senate blue ribbon committee chair Sen. Teofisto Guingona III to allow him to read a statement from Ongpin. Guingona denied the request saying, "we will grant his request when he is here personally." But Poblador said: "I'm pleading for an exemption to the rule because he [Ongpin] left on September 23 before the invitations were sent and he would really like to participate in this proceedings and I think in fairness to him he should be able to present his side at this point in time." But Guingona was unmoved. "We cannot accede to that. We will give him the opportunity when he's here," he said. In 2009, the DBP allegedly granted P660 million in loans to Ongpin's company Delta Venture Resources Inc. (DVRI). The loan was used to finance the acquisition of Philex Mining Corporation shares that were later on sold at a higher price. Irregularities During the committee hearing, the DBP noted the alleged irregularities in the granting of behest loans to Ongpin. "We have noted some deviations from DBP internal policies," Aurita Villosos of the DBP's internal audit said on the behest loans granted to Ongpin's DVRI. Villosos said the loans were granted despite the losses in their operations in 2008. Also, she said DVRI was granted a low fixed interest rate despite a DBP circular prohibiting such arrangement. "We have an observation that... evaluation and approval of loans were done in haste discussions or deliberations.... the accounts were not adequately documented," she added. Ongpin and former DBP president Reynaldo David were both members of the Philex board at the time of the purchase. David, however, said that there were no irregularities in the DBP's transactions with the DVRI, and that these were consistent with policies and guidelines. "The financial transactions of the bank were properly evaluated, studied, recommended, and approved with the end view that in the exercise of the sound business judgment of the board transactions will always be advantageous for the DBP, free from irregularities of laws, rules, and regulations," he said during the hearing. David, who was president and CEO of DBP from October 4, 2004 to June 30, 2010, added that he is "ready and willing" to prove that all the transactions by the DBP were properly conducted. The Senate hearing was still ongoing as of posting time. — LBG, GMA News