PDIC mulls accepting certified copies of evidences of deposits

CEBU, Philippines – The Philippine Deposit Insurance Corporation (PDIC) is currently studying the possibility of accepting authenticated copies of evidences of deposit instead of the original documents, to speed up the releasing of insurance claims of depositors and investors of the Legacy Group.

In a press statement issued by PDIC president Jose C. Nograles, he said that his office had already given instructions for field personnel to accept certified duplicates.

However, he said he had been informed that in the meantime that the study is being made, “we have to follow government auditing regulations requiring original documents.”

“In view of this, we shall continue to require original documents but at the same time, we will issue new forms especially acknowledging receipt of the original evidences of deposit, in order to assuage depositor concerns,” Nograles said.

As of May 31, 2009, PDIC has validated over 53 thousand Legacy bank accounts amounting to around P2 billion out of the close to 135 thousand total accounts in 12 Legacy banks.

These validated accounts, which represent about 40 percent of total accounts are ready for payment, PDIC announced.

However, only 35 percent or 18,432 of these validated accounts have filed claims for deposit insurance. This means that 65 percent of those with validated accounts have not yet filed.

“PDIC is calling on these depositors to file their claims,” Nograles said.

Of the 18,432 that filed, PDIC has paid of 14,061 accounts or 76 percent amounting to P150 million.

Bulk of the Legacy accounts of over 81 thousand has been classified as “doubtful” and “for further examination” (FFE). These accounts have to be subject for further evaluation in order to determine their validity based on standard operating procedures.

PDIC reported that a total of 84,770 claims have been filed for these doubtful and FEE accounts including some accounts that are not even in the master-list of deposits.

“PDIC has started writing these depositors informing them that the corporation has no legal basis for paying these accounts,” said Imelda S. Singzon PDIC executive vice-president and in-charge of claims, receivership and liquidation.

Singzon said there have been complaints from depositors regarding delayed payments.

“PDIC appeals for patience as we are dealing with an unprecedented volume of deposit accounts numbering close to 135 thousand and involving a large percentage of doubtful and for further verification accounts, in levels unprecedented in Philippine bank history,” she said.

Singzon stressed that the sheer volume of doubtful and FFE accounts makes the validation very tedious therefore involving a longer time than usual.

“We assure the public that PDIC is able and ready to pay all valid claims. Our deposit insurance fund which stood at P60.4 billion as of end 2008, is sufficient to pay all valid claims,” she concluded. — Ehda Dagooc