EPCI Bank unit faces sanctions

Equitable PCI Bank may face a maximum fine of P1 million or the suspension of its permit to sell securities for violation of the Securities Regulation Code.

The surveillance unit of the Securities and Exchange Commission (SEC), Compliance and Enforcement Department (CED), has recommended the imposition of a fine of P10,000 up to P1 million on EPCI Bank and its subsidiary PCI Leasing & Finance Inc. for their failure to comply with securities rules.

The CED also recommended the suspension of the registration certificates of EPCI Bank.

The imposition of administrative charges was a result of the acts committed by former officials of EPCI Bank to allegedly allow the founding Go family to maintain control of the country’s third largest lender.

The CED investigation showed that some former bank officials might have connived to have Roberto Romulo elected as an independent director of EPCI Bank despite his lack of qualifications.

The investigation was in response to the complaint filed by the Government Service Insurance System (GSIS) against EPCI Bank’s former top officers – chairman Antonio Go, corporate secretary Nilo Divina and directors Anthony Conway and Peter Go-Pailian – for alleged fraud.

The GSIS claimed that EPCI Bank failed to disclose that Romulo was the chairman and director of Equicom Systems Management Inc., a company majority owned by Equitable Development Corp., a substantial shareholder of EPCI Bank.

Under the Securities Regulation Code, an independent director must not be an officer or employee of the corporation they serve, as well as any affiliate, subsidiary or related company thereof.

The GSIS and SSS together hold more than 40 percent of the bank’s stockholdings.