CEBU, Philippines - Even if some of the 28 checks that were lost to a swindling syndicate at the Cebu City Medical Center have already been encashed, there is still a chance to recover the money by asking a refund from the depository bank.
Prudencio Gesta, former president of the Cebu Bankers Club, said that the CCMC can ask for a refund of the checks that were already encashed if they can prove, through the ongoing investigation of the National Bureau of Investigation, that there was a fraudulent endorsement of the checks.
“The payee (CCMC) can go after the negotiating bank on this problem. That’s why it is important for the NBI to prove that there was a fraudulent endorsement of the checks,” Gesta said.
Under the “Negotiable Instrument Law” of the Bangko Sentral ng Pilipinas (BSP), all checks must be endorsed properly by the payee, if in case of improper endorsement, Gesta said the payee in this case, the CCMC can demand refund from the negotiating bank.
This is the reason why, banks have to counter-check the signatories of the payees, and in case of rediscounting transactions, the negotiating bank should be able to counter-check the credibility of the transacting party.
According to Gesta, the lost checks can possibly be recovered, under the Negotiable Instrument Law, and the negotiating bank, can always refund the payee in this particular case.
“It is now the risk of the negotiating bank. Payee can always demand for reimbursements of the specific amount of the checks within 10 years,” Gesta explained.
The CCMC only needs the proof from the NBI and the affidavit of loss to the negotiating bank to ask for reimbursement. In turn, the bank will run after the depositor that transacted the lost checks.
Gesta said that bankers know the risk of agreeing to second-endorsed checks, as they are deemed to take the risk, in cases of fraud.
At least 28 checks amounting to P240,000 issued to the CCMC were reportedly missing.
Nine checks amounting to P114,839.25 have been encashed, while the remaining 19 are covered by a “stop payment” order, which the Philippine Health Insurance Corp. (Philhealth) filed before the Land Bank of the Philippines (LBP) after hospital officials reported the missing checks.
LBP Cebu Capitol branch had already encashed nine checks issued to CCMC with the line “Chief of Hospital Dra. Myrna Go” added on top. The checks, with different amounts ranging from P6,230 to P19,191, were encashed using an alleged forged signature of Go.
The amount represents various payments for hospital charges of Philhealth patients admitted at CCMC.
“We are very strict in transacting especially for second-endorsed check, because under the law, the bank is required to refund the payee. It now becomes a big risk for the negotiating bank,” Gesta said.(FREEMAN NEWS)