PDIC files criminal charges vs former Export Bank officials

MANILA, Philippines - The Philippine Deposit Insurance Corp. (PDIC) filed with the Department of Justice on May 9, 2013 a criminal complaint against the former chairman and five other officers of the closed Export and Industry Bank (EIB) for conducting business in an unsafe and unsound manner, in violation of the PDIC charter and the General Banking Law (GBL) of 2000. 

Charged for the commission of irregularity and for conducting business in an unsafe and unsound manner and for violation of the GBL were Jaime C. Gonzales, former chairman of EIB; Juan Victor S. Tanjuatco and Nilo L. Pacheco, Jr., former presidents of EIB; Teresita Q. de Ocampo, former vice president and chief financial officer; Alex Luis M. Pesigan, former senior vice president and head of treasury group; and Adeline L. Grimares, former vice president, risk management group. 

PDIC’s complaint alleged that “respondents authorized and allowed the payment of a success fee when the obligation to pay such a fee has not arisen”. The complaint stated that the success fee amounted to $4.8 million. Of this amount, $3.0 million was received by AO Capital Partners Limited, where Gonzales was also the chairman.  

When sought for comment, Finance Secretary and PDIC chairman Cesar V. Purisima highlighted the importance of the filing in fulfilling the spirit of the PDIC’s mandate.  “The filing of these charges by the PDIC highlights our commitment to protecting the interests of the Filipino depositor.  We in the DOF, PDIC, and attached agencies will not abide by practices that selfishly endanger the futures of Filipinos for the personal gain of a few. We intend to pursue the full application of justice in this case and, most importantly, we intend to uphold the faith of the Filipino people in a government that will protect them from malicious corporate interests.” Purisima said.