Business as usual at PDIC

MANILA, Philippines - State-run Philippine Deposit Insurance Corp. (PDIC) said it is business as usual for the deposit insurer despite the impending departure of resigned president Jose Nograles next month as it continued to service the insurance claims of closed banks led by Banco Filipino Savings and Mortgage Bank.

PDIC officer-in-charge Imelda Singzon said in a statement that the agency is beefing up its manpower starting this week to conduct claims receiving operations for Banco Filipino and claims servicing operations for Growers Rural Bank and GMA Rural Bank of Cavite.

“The almost simultaneous PDIC operations in these three closed banks will be undertaken even as the corporation is going through a leadership transition,” she stressed.

Singzon, who is currently PDIC executive vice president, explained that PDIC has policies in place to ensure operational continuity and stability and is run by professional and highly competent officers and staff.

“This is not the first time that PDIC has undergone such a transition in leadership. During all these times, PDIC continued to carry out its mandate of depositor protection and conduct payout operations as soon as possible,” she added. 

She pointed out that leadership transition had taken place in 2003, 2006, and 2007.

Nograles tendered his resignation that would take effect May 31 citing policy differences with PDIC chairman and Finance Secretary Cesar Purisima who immediately accepted the resignation.

The term of Nograles is supposed to expire June next year as he just assumed the term of former PDIC president Mike Osmeña who died in 2007 due to cancer. The president of PDIC has a fixed term of six years.

“I have decided against completing my term as President of PDIC due to policy differences with our chairman, the secretary of finance. such differences, unfortunately have proved to be irreconcilable and consequently have led to dysfunctional relationships in the corporation,” Nograles said in text message to reporters.

Nograles was appointed by former President and now Pampanga Rep. Gloria Macapagal Arroyo as PDIC President last January 2008. He is the brother of former House Speaker and Davao City Rep. Prospero Nograles who used to head the house contigent in the Commission on Appointments.

In February 2005, Purisima led former economic managers dubbed as the “Hyatt 10” who resigned en mass as they called for the resignation of then President Arroyo.

This early, sources said former Presidential Commission on Good Government (PCGG) commissioner Caesar Parlade is one of the names being considered to replace Nograles.

Parlade recently resigned as general manager of Deutsche Knowledge Services of the Deutsche Bank Group. He also served as head of PDIC’s supervision and examination sector between 1991 and 1997.

Like Purisima, Parlade worked and started his career at SGV & Co.