Some relief from Legacy fiasco: PDIC now paying bank depositors

CEBU, Philippines - The Philippine Deposit Insurance Corporation (PDIC) will start releasing today the money of some depositors of the Legacy Group banks that declared a ‘bank holiday.’

This does not cover all depositors as only those with one savings account with funds of P100,000 or less would be able to get their money.

Ferdinand Beluan, PDIC manager III of the Receivership and Liquidation Department told The FREEMAN yesterday that starting today they will be releasing actual claims of the depositors.

The Bangko Sentral ng Pilipinas has put 12 banks under Legacy Group, wherein five are in Cebu under receivership by the PDIC. This came after the declaration of a ‘bank holiday’ last December.

The five banks in Cebu are the the Philippine Countryside Rural Bank and all its branches, the Pilipino Rural Bank and all its branches, the Rural Bank of Bais (Supreme Bank) in Mandaue City, the Bank of East Asia in Minglanilla and Rural Bank of Carmen in Carmen, Cebu.

Several depositors, who already got their claim forms, told The FREEMAN that they are very happy that finally their hard-earned money will be released after weeks of waiting.

“Pasalamat gyud tawon mi nga makuha na gyud namo ang among kwarta nga ge deposito kay kwarta intawon to sa akong anak nga nagtrabaho abroad,” says PCRB depositor Erlinda Casimara.

Stunned depositors were previously in quandary when their respective banks suddenly closed.

   Numbered claim forms were distributed at the bank/branch premises where these accounts were maintained starting last Wednesday.

In an advisory, PDIC Executive Vice President Imelda S. Singzon, in charge of Claims, Receivership, and Liquidation, explained that to ensure an orderly payout, the claim forms have been numbered, each number corresponds to an appointment date for the processing of the depositor’s claim.

“Distribution of claim forms will be on a first come, first served basis. The number indicated in the claim form corresponds to the appointment date of the depositor. This will ensure that the depositor’s claim will be processed on that day,” Singzon said.

She advised depositors to file their claims on the appointed dates.

Singzon also said that PDIC is prioritizing the claims of depositors with regular savings accounts of P100,000 and below in keeping with the state deposit insurer’s mandate to protect small, unsophisticated depositors.

Singzon said that based on available data from the 12 closed banks, depositors with accounts P100,000 and below represent about 62 percent of the total deposit accounts that number more than 130,000.

She added that distribution of numbered claim forms for regular savings accounts with balances of P100,000 and above as well as for time deposits, special savings accounts and current accounts will be announced as soon as examination of deposit records is completed.

The Legacy Group of Banks, that has declared bank holidays last December has an estimated 90,000 depositors nationwide.

The Legacy Group banks were found by the BSP examiners in July 2007 to have an aggregate undercapitalization of P2.5billion.

 BSP then ordered the said banks put under receivership, but the bank management filed a case the latter to stop the publication of its findings.

 BSP raised the matter before the Supreme Court and on November 24, 2008 the latter ruled in favoring of BSP. —/NLQ (THE FREEMAN)