Former Urban Bank execs deny getting P73-M kickbacks

We vehemently deny and denounce the false and malicious accusation published in last Monday’s (April 30) issues of the

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and the

that we have received “some P73 million in kickbacks’’ with the officers of the defunct Urban Bank when it purchased a parcel of land in Pasay City in 1994 from the Isabela Sugar Co., Inc. The accusation is based on an affidavit executed by Enrique Montilla, president of the sugar company on March 26, 2012, that   Magdaleno Peña submitted to the Supreme Court as a supplement to his motion for reconsideration to reverse the Court’s decision dismissing his claim for P25 million as broker’s commission in the sale of the property. 

In its decision dated October 19, 2011, the Supreme Court denied Peña’s Petition for Review of the Court of Appeals’ decision that the Regional Trial Court of Bago City gravely abused its discretion in awarding unconscionable damages in favor of Peña against Urban Bank and its officers, including the undersigned former directors.

We were nominal directors representing the minority stockholders of Urban Bank when it bought the Pasay property from Isabela Sugar Co., Inc. The purchase of the property was handled by the management of Urban Bank. Our role in the sale was merely to consider it for approval when the bank management presented it to the board of directors for ratification.

If there is any truth to the accusation against us, why did Peña wait for 16 years to submit to the Supreme Court the Montilla affidavit? Why did Peña not submit the affidavit to the Court of Appeals that reversed the decision in his favour rendered by the Regional Trial Court of Bago City?   It is obvious that the Montilla affidavit is a last ditch effort by Peña to convince the Court to reconsider its decision denying his claim for P25 Million.

We wish to remind the press to be more circumspect in reporting news that can damage or tarnish a person’s reputation without getting his side. It is conceded that the press enjoys the freedom of the press under our Constitution, but a responsible press must do some verification of the side of a party accused of some crime or irregularity. The Montilla affidavit blatantly accused us of receiving kickbacks. Responsible reporting demands that your reporters should also get our side, and verify the truth of the report.

We would appreciate if this letter can be published in the next issue of your paper. — Benjamin L. De leon and Delfin C. Gonzalez Jr., ACCRALAW, 22/F ACCRALAW TOWER, Second Avenue corner 30th Street, Crescent Park West Boniffacio Global City, 0399 Taguig