Lucio Tan tightens hold on PNB board

Business tycoon Lucio Tan is reportedly consolidating his hold on the board of Philippine National Bank.

Highly placed banking sources said Tan's brother, Mariano Tanenglian, will soon replace Malacanang's nominee Gregorio Santayana in the PNB board.

Tanenglian's entry into the PNB board is expected to be announced during the PNB board meeting at the end of this week.

Sources said Tan now virtually runs PNB, holding office at the PNB head office Complex daily.

Tan plans to acquire government's remaining 30 percent stake in PNB.

They also said Tan is reviewing the books of PNB in preparation for his offer for the government shares in a public bidding.

A date for the bidding has not been set since a financial audit of the bank being conducted by Price Waterhouse has not yet been completed.

Finance Undersecretary Joel Banares said the new PNB management has asked for additional time to complete the audit report with Price Waterhouse.

Sources said the PNB management probably wants to ensure that the audit report will not come out with any adverse findings.

However, they said that Price Waterhouse did find some questionable transactions including an over provision for the bank's loan-losses.

PNB's non-performing loans as of the end of 1999 soared to an uncomfortable 29 percent of total loan portfolio.