Leyte to withdraw P100M bank deposit

TACLOBAN CITY , Philippines   â€” The provincial government of Leyte has decided to withdraw its estimated P100 million deposit in payroll money from the Philippine National Bank following complaints that a former manager was involved in an investment scam, using the bank's name and office, which went on for years.

Vice Governor Carlo Loreto said the Provincial Board approved the authority for Governor Dominic Petilla to withdraw the money last week and deposit it in another bank.

This decision came after the Capitol learned of an alleged investment scam that was pulled off within the PNB Baybay City branch by its former manager Gabriel "Bobby" Kirong, who has since gone incommunicado and can no longer be located.

Loreto however said he disagreed with the observation that the withdrawal might cause a bank run. "P100 million is just a drop in the bucket for PNB. It is our job to secure the money of the government, otherwise, we will be held liable for it if we fail to safeguard it," he said, although he did not say that the scam was the fault of the bank.

The alleged scam was exposed after Lydia Puray-Palermo wrote the PB that she was duped by the former PNB-Baybay branch manager to invest her money in an investment scheme that later turned out to be non-existent.

Since then, 18 more alleged victims surfaced complaining the same. Loreto said the PB expected more to come out and that there were teachers who also complained that they invested some of their savings on Kirong's non-existent investment scheme. They also found out their "retirement fund" was non-existent.

In an investigation on the matter conducted on Tuesday by PB Member Florante Cayunda Jr. (5th district), chair of the committee on banking and finance, Palermo told the PB that all the transactions happened inside the bank, making her believed it was above board.

Palermo said it was Kirong of  PNB-Baybay who personally convinced her to invest in the bank. In turn, she invested some P 2.5 million on the investment plan called "TIER 2."

When the PNB did not act on her request to recover her investment, upon maturity, because there was no record of such transaction with the bank, Palermo said she decided to bring her complaint to the PB.

PNB, on the other hand, had already issued notices to the public, informing that Kirong was no longer connected with the bank and that "information as to his whereabouts shall be greatly appreciated."

PNB representatives, led by lawyer Stephanie Castañeda, told the PB the bank was already investigating the complaints, and that a team of auditors was in the Baybay branch conducting an audit. 

Castañeda said they first got wind of Kirong's activities last year but did not know its extent. She also clarified that Kirong was "dismissed from service" because of the complaint and was not able to get his retirement benefits.

Castañeda added that it has been PNB's position that the transactions of Kirong were "personal" and the most that the bank could do will be to help the complainants prosecute the former branch manager. She said they already offered to Mrs. Palermo, in writing, that they would give her a lawyer and access to all documents she needs to build up a case against Kirong.

Two of Kirong's "victims" also told The Freeman that they entrusted Kirong with their money because they were from the same town of Inopacan and that he was a bank manager.

One of them, retired teacher Francisca Dedal, 66, said she gave Kirong P300,000 from her retirement fund for the "investment," and deposited P 100,000 on a savings account. Because she trusted Kirong, she also gave him pre-signed withdrawal slips so that she could get her monthly interest or dividend from her investment.

For 10 months since, she got P5,000 a month, personally delivered to her by Kirong as her "dividend." However Kirong vanished and she found out her savings was wiped out too.

Winifredo and Narcisa Piamonte, on the other hand, gave Kirong P 750,000 as their investment. They in turn got P10,000 a month from him until the day he vanished. They later found out there was no record of any investment in their name made at the PNB.  (FREEMAN)