Tetangco defends Espenilla

Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. defended his deputy who heads the bank examination and supervision operations of the BSP.

Tetangco, who is in Kuala Lumpur attending a series of meetings with other central bankers in the region, issued a statement over the weekend following allegations of irregularity against BSP Deputy Governor Nestor Espenilla.

Espenilla has been accused of favoring Rural bank of San Jacinto in Masbate, a small rural bank founded by his mother.

Tetangco said Espenilla was “being subjected to unfair and unfounded allegations.”

Tetangco explained that Espenilla has denied ownership of this bank. He said RB San Jacinto was incorporated by Espenilla’s mother in 1968 when he was ten years old. 

“Since its establishment up to the present, I never owned any share of stock in RB San Jacinto nor was I involved in its management,” Espenilla said. “I absolutely have no dealings with the bank, either as a borrower or an investor. I have never been employed by RB San Jacinto.” 

Tetangco said Espenilla continued to “enjoy my trust and confidence.”

“I have known Deputy Governor Nestor Espenilla in the 27 years that he has been a central banker,” Tetangco said.

“In all these years, I have known him to be a person of integrity who applies his intellect, professionalism, and dedication in serving the country well as a central banker,” Tetangco said.