DOJ creates panel for BF, BSP complaints

MANILA, Philippines - The Department of Justice (DOJ) has created a panel of prosecutors to investigate the counter charges between Banco Filipino Savings and Mortgage Bank and Bangko Sentral ng Pilipinas (BSP) in connection with the bank’s recent closure.

In her Department Order No. 283, Justice Secretary Leila de Lima consolidated the complaint of Banco Filipino officers against BSP and Monetary Board officials and the latter’s counter complaint both filed last April 1.

She named Senior State Prosecutor Rosanne Balauag as chair of the panel that will conduct a preliminary investigation on the complaints. Asst. State Prosecutors Bernardo Parico and Agapito Fajardo Jr. were assigned as members.

In their complaint, officers and stockholders of the bank represented by Maxy Abad, Francisco Rivera and Mary Lou Vasquez accused BSP and Monetary Board officials of violating Section 3 (e) of RA 3019 (Anti-Graft and Corrupt Practices Act).

Through lawyer Harry Roque Jr., they alleged that BSP violated the anti-graft law when it denied the grant of emergency loans needed by the bank under an emergency situation and when it eventually ordered the closure and receivership two weeks ago.

Complainants said the closure was “done with manifest partiality, evident bad faith and gross inexcusable negligence to the damage and prejudice of Banco Filipino, its stockholders and depositors.”

Named respondents in the complaint are BSP Governor Amado Tetangco Jr., Deputy Governor Nestor Espenilla Jr., Deputy Governor and general counsel Juan de Zuniga Jr., and MB members Juanita Amatong, Alfredo Antonio, Ignacio Bunye and Peter Favila.

The BSP, on the other hand, filed counter charges and sought the indictment of Banco Filipino directors for alleged willful refusal to file audited financial statements from 2002 to 2007.

It also accused respondents – Abad, Banco Filipino president Teodoto Arcenas Jr., and director Perfecto Yasay Jr. – of falsification and issuance of false statements to hide the true financial condition of the bank, willful refusal to report loans, 26 counts of violation of BSP laws and directives and willful refusal to cease conduct of unsafe, hazardous and unsound bank practices.

“The criminal charges that the bank officers are now facing gives the public a glimpse of the unsound banking practices that inevitably led to Banco Filipino’s closure. More than half of the bank loan’s portfolio was allocated to the directors, officers, stockholders and other related interest of the bank,” BSP had alleged.

Several branches of Banco Filipino began shutting down two weeks ago after officials announced the bank was “suffering from extraordinarypanic caused by a well orchestrated smear campaign, quoting BSP as the source of inaccurate and malicious imputations.”

Banco Filipino has been seeking P25-billion worth of financial assistance and regulatory relief as well as P19 billion in compensation for its alleged illegal closure in 1985.

Roque denies BSP accusation

Meanwhile, lawyer Harry Roque vehemently denied BSP’s accusation that he and his law firm benefited from the P245 million in legal fees from the closed Banco Filipino Savings and Mortgage Bank.

Roque of the Roque & Butuyan Law Offices said in a letter to The Philippine Star that the legal fees charged by his firm for instituting criminal complaints against the BSP last December do not even amount to one percent of the P245-million legal fees “maliciously” imputed by the BSP in its press release.

Roque, one of the lawyers of the victims of the Maguindanao massacre, stated in his letter dated April 7 that Banco Filipino engaged his services last July 2010 to institute criminal complaints.

He added that Banco Filipino still owes his law firm about P500,000 in fees for the substantial legal services it rendered in the filing of the criminal complaint last December.

He pointed out that the BSP through its appointed comptroller has full access to the documents of Banco Filipinos that include the actual amounts paid for legal services.

“Hence, the dishonest imputation made by the BSP that I or my firm benefited from the P245 million in legal fees, is a highly malicious and grossly irresponsible statement,” Roque stressed. — With Lawrence Agcaoili