Unitrust Bank head denies Ogami involvement

The new management of the closed Unitrust Development Bank denied yesterday that controversial Japanese businessman Genta Ogami is in anyway involved with the bank’s operations.

As this developed, acting Unitrust president Jose Apolinario said the bank will be submitting a rehabilitation plan to the Philippine Deposit Insurance Corp. (PDIC) which last week placed the bank under receivership.

"Genta Ogami is neither the owner nor a director of the bank," Apolinario said.

Apolinario who claimed he assumed the bank’s presidency only recently after Francis Yuseco, Jr. resigned as bank president, said in yesterday’s press conference, he is not aware that Ogami nor the companies he allegedly owns such as G. Cosmos Philippines, have existing accounts with the bank.

Bank employees present during the presscon however, claimed otherwise.

Speaking on condition of anonymity, one employee said: "I think he is a major shareholder in the bank. We saw him several times here at the head office meet with Yuseco."

Another employee said Ogami even attended the employee’s Christmas party last month. There were also a 2002 calendar displayed at the Unitrust head office in Makati with Ogami in various poses and outfits that clearly identified him as Unitrust boss.

Reading a press statement, Apolinario instead accused the former management led by Yuseco of orchestrating the bank’s collapse.

"This was actually part of a grand plan to paralyze the operation of the bank to force the new management to rehire them. This was the main reason for the bank run. Contrary to the misguided and unfounded earlier reports, the financial crisis that hit the bank was solely on the basis of mismanagement and illegal activities attributable to the former management.

These acts may be tantamount to economic sabotage," said Apolinario.

Apolinario said other anomalies and irregularities caused by the previous management are currently being investigated before proper charges are made.

Apolinario said Yuseco, who was appointed bank president last Sept. 21 when a group of Filipino and Japanese investors bought Unitrust for more than P500 million, later had a falling out with the buyers.

The buyers who hold 20 percent each are G. Universal Co., which is believed to be controlled by Ogami, Minamoto Saiken Kaishu Co. Ltd., lawyer Leopoldo Valcarcel Jr., Pedro Z. Montanez and Yuseco.

"Yuseco was hired in view of a language difficulty the Japanese investors were facing in dealing with business transactions in the country, but what followed was a management squabble," with the officers duly appointed by the Japanese investors stripped of any authority to participate in the affairs of the bank.

Apolinario claimed that Yuseco‘s group eventually took over the bank until Dec. 31 last year. It was about that time that the new management took over, Apolinario included.

"Unknown to the new management, however, Yuseco’s group "clandestinely" forced and approved the retirement of all employees and officers of the bank on Dec. 21 that would take effect on Dec. 31, long before the new management took over," said Apolinario.

Moreover, checks for their retirements benefits amounting to some P20 million of which P13 million was supposed to be Yuseco‘s alone, were paid out prior to the effectivity of their retirement.

"This is unprecedented in the labor industry. These retiring officers and employees were advised to remain, until such time that there was a proper turnover of accountabilities to the new management," added Apolinario.

The acting Unitrust Bank head also said that initial investigations show the bank‘s branch managers were also directed to advise their depositors to withdraw their deposits.

"These depleted the liquid assets of the bank and with the mass resignation and retirement of the old officers and staff of the bank, followed by heavy withdrawals of depositors. Unitrust was operationally crippled and cash drained, with a total withdrawal of P138 million from Dec. 21 to 28, 2001," said Apolinario.