Two senators on Monday questioned the motivation of the Development Bank of the Philippines (DBP) in granting a multimillion loan to a firm that was supposedly just fronting for controversial businessman Roberto Ongpin. During Monday's Senate blue ribbon committee hearing on the alleged behest loans granted by DBP, Senate President Juan Ponce Enrile and Senator Francis Escudero asked whether it only granted the P660-million loan to Delta Ventures Resources Inc. (DVRI) in 2009 just because Ongpin was connected with the company. "Did you lend the money on the basis of the fact that you were comfortable enough in granting the loan of that magnitude, inspite of [the] not too pleasant condition of the financial records [of DVRI], because of Mr. Ongpin as the beneficial owner of the corporation?" Enrile asked former DBP chair Reynaldo David. "(That is the) rich father-in-law syndrome. Is that common practice in banks? Would banks accept that?" added Escudero. However, David explained that the grant was premised on two things:
that DVRI had offered a collateral of 68,961,886 shares of Philweb Corporation and 50 million Philex shares, and knowing that the beneficial owner of DVRI - Ongpin - had a relationship with DBP and has never failed in paying loan obligations. "It's an additive to a decision-making situation for the grant," he said during the same hearing. Ongpin a behestor? Enrile asked whether the DBP's move makes Ongpin a "behestor." "Could the fact that Mr. Ongpin negotiate the cotract with DBP make it safe for DBP to lend the money consideirng the financial condition of DVRI?" Enrile asked. "Is that sound banking practice?" However, David said they had proper basis for the grant, which he said was decided by the whole board. He also said that they would have extended the loan even though Ongpin was not the one behind DVRI. Enrile then asked for the minutes of the meeting and board resolutions concerning the transaction. Not a front for Mike Arroyo Earlier in the day, Ongpin had denied any irregularities in the deal and added that he was not fronting for his friend former first gentlemen Mike Arroyo. In 2009, the DBP granted P660 million in loans to DVRI, which was initially thought to have been Ongpin's company because it acquired the loan for the stock purchase which benefitted the businessman. However, Solicitor General Jose Anselmo cadiz earlier said that Ongpin was not a stockholder of DVRI. He said DVRI was almost like a single proprietorship of Josephine Manalo, who owned 24,996 shares out of the firm's 25,000 shares. Cadiz also said Manalo was a long-time executive secretary of Ongpin, who was an executive of DVRI. Also in 2009, DVRI asked DBP to register the 50 million shares of Philex Mining Corporation bought using the DBP loan to Golden Media, Ongpin's firm which eventually sold the shares at a higher price to Two Rivers, a firm affiliated with business mogul Manny Pangilinan. - GMA News 
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