GSIS chief slams Equitable owners

Smarting from allegations that state pension funds were misused to finance the purchase of PCI Bank by Equitable Banking Corp., Government Service Insurance System president and general manager Winston Garcia accused yesterday "a group within the board who wants to control the bank but who does not want to be responsible for its indecisiveness."

Although Garcia did not mention any name, industry sources said he was referring to the Go family, who holds a 35 percent stake in the bank but controls the 15-man board.

The Go siblings led by Peter Go Pailan had a falling out with long time chairman George Go at the height of the Senate impeachment trial of former President Joseph Estrada. Peter Go was re-installed late last year as chairman.

The GSIS and the Social Security System hold a combined 37 percent stake in Equitable PCI Bank. The Romualdez family has seven percent, equivalent to one board seat. The balance of 21 percent is held by minority stockholders.

At yesterday’s stormy annual stockholders’ meeting, Garcia claimed the pension funds were promised by "the group’ an equal number of seats in the board. He wanted the board seats vacated by Makati Business Club chairman Ricardo Romulo and former SGV chairman Gloria Tan Climaco, who gave up their seats.

Right now, the GSIS is represented in the Equitable PCIBank board by chairman Rolando Macasait and Garcia. SSS is represented in the same board by president Vitaliano Nañagas II and executive vice-president and chief actuary Horace Templo.

Garcia’s move is seen by the industry as a bid by the pension funds to more actively participate in the decision-making process of the bank.

Garcia said one of the conditions for new investors to come in is for the Go family to relinquish more control of the board.