DBP sets raps over P650-M Philex deal

MANILA, Philippines - The Development Bank of the Philippines (DBP), through the Office of the Ombudsman, will file administrative and criminal charges against its former employees as well as other persons involved in anomalous transactions with the bank.

In a press briefing yesterday, DBP president and chief executive officer Francisco del Rosario Jr. said the government financial institution has already submitted the results of an audit investigation regarding supposed irregular transactions involving Philex Mining Corp.

“We submitted the report to President Aquino and Finance Secretary Cesar Purisima. We will also submit the report to the Office of the Ombudsman that will review and file the appropriate charges,” Del Rosario said.

The administrative charges are in relation to violations of DBP regulations as well as banking rules of the Bangko Sentral ng Pilipinas (BSP).

Del Rosario declined to identify those implicated in the audit report. 

He also revealed that there are two more investigations being conducted related to anomalous transactions in the bank.

The previous bank chair was former labor secretary Patricia Sto. Tomas while the previous president was Reynaldo David.

In the same briefing, the DBP said that Benjamin Pinpin, a member of the bank’s legal office who committed suicide last Tuesday, was not a critical element to the investigation.

“He was one of 20 persons who were part of the investigation, and he was merely in the collating portion,” Del Rosario said.

He also said that the latest findings confirmed that Pinpin’s death was self-inflicted and that it was not “under suspicious circumstances.”

Pinpin left three letters addressed to his wife, his mother and his two children.

Del Rosario said he was against the issuance of show-cause orders to 20 bank employees, but favored the issuance of such to only five employees.

“This is not witch hunting,” he said.

The DBP said that the Philex issue involved Delta Venture Resources Inc. and Goldenmedia Corp., both firms identified with the Roberto Ongpin Group of Companies, which drew a combined P660 million in loans from the bank.

The same group has also been involved with the Ashmore Group that recently acquired the Philippine Bank of Communications (PBCom), Petron Corp., AlphaLand Corp., and Atok Big Wedge Mining Corp.