MANILA, Philippines - The Palace has declassified banking information in the alleged P660-million behest loans granted by the state-owned Development Bank of the Philippines (DBP) to businessman Roberto Ongpin in 2009, an official said yesterday.
Solicitor General Joel Cadiz said this will help government prosecutors strengthen the case in the Office of the Ombudsman against Ongpin, former members of the DBP board and several bank officials over the supposed irregular loan transactions worth P660 million.
Cadiz cited a letter last Sept. 11 sent to DBP President and Chief Executive Officer Francisco Del Rosario Jr. by the Palace through Executive Secretary Paquito Ochoa Jr. who signed “by authority of the President.”
Malacanang has directed the state-owned bank to declassify information under section 22 of Executive Order 81 (Revised Charter of the DBP) for purposes of examination or investigation.
The Palace, however, made it clear that the information would only be disclosed to the Office of the Solicitor General and other government agencies with the power and authority to investigate the case.
The declassification of the information came after chairman Jose Nunez and Del Rosario filed criminal and administrative cases before the Ombudsman against Ongpin and several incumbent and former bank officials led by former president Reynaldo David, former chair of the DBP board Patricia Sto. Tomas, and senior executive vice president and chief operating officer Edgardo Garcia, in connection with the P660-million behest loans.
Under the law that created the DBP, only the President can allow the declassification of information on transactions made by the state-owned bank whose primary mandate, among others, is to finance small and medium-sized entrepreneurs and fund microfinance institutions to support the poverty alleviation programs of the government.
Apart from the behest loans to Ongpin’s Delta Ventures Resources Inc. (DVRI), the Palace also allowed the OSG and other investigating bodies to look into three other questionable transactions of the DBP during the previous administration.
In the case of DVRI, the complaint before the Ombudsman stated that the past board of directors of the DBP extended two “behest” loans of P150 million and P510 million to an Ongpin’s DVRI despite its having only P625,000 in paid-up capital and despite its latest financial statements which DVRI submitted indicating a net loss of P98.76 million and retained earnings of negative P2.35 million.
Ongpin’s Delta Ventures used the DBP facility to buy a block of Philex Mining shares at P12.75 a share, which he later sold at P21 per share.