MikeLigalig.com

Ombudsman dismisses DBP officials
06 December 2012

          Ombudsman Conchita Carpio Morales ordered the dismissal from the service of 13 Development Bank of the Philippines (DBP) officials for granting behest loans to Deltaventures Resources, Inc. (DVRI) in the total amount of P660M in 2009.

           In a 54-page Review Decision signed on 21 November 2012, Ombudsman Morales found former Directors Benedicto Ernesto Bitonio Jr., Alexander Magno, Renato Velasco, and Franklin Velarde; former Senior Executive Vice President (SEVP) & Chief Operating Officer Edgardo Garcia; former SEVP & Marketing Head of the Brach Banking Sector (BBS) Jesus Guevarra II; former VP & Head of Regional Marketing Center-Metro Manila (RMC-MM) Crescencia Bundoc; BBS Manager for RMC-Western Luzon Arturo Baliton; RMC-WL Chief Accounts Management specialist Nelson Macatlang; RMC-MM Assistant Manager Marissa Cayetano; former AVP Teresita Tolentino; RMC-MM Assistant Manager Rodolfo Cerezo; and RMC-MM Assistant Manager Warren de Guzman administratively liable for Grave Misconduct and Conduct Prejudicial to Best Interest of the Service and meted them the penalty of Dismissal from the Service, as well as the accessory penalties of cancellation of their eligibility, forfeiture of their retirement benefits, perpetual disqualification from holding public office and barring them from taking civil service examinations.

           The Decision narrated that DBP extended two loan facilities in the amounts of P150 million and P510 million in April 2009 and November 2009, respectively, to DVRI.

             However, the  Ombudsman concluded that the said loans were behest as they conform to some of the criteria in determining whether a loan is behest, laid down in Memorandum No. 61 dated 09 November 1992, namely:

a.    It is under-collateralized.

b.    The borrower corporation is undercapitalized.

c.    Direct or indirect endorsement by high government officials like presence of marginal notes.

d.    Stockholders, officers or agents of the borrower corporation are identified as cronies.

e. Deviation of use of loan proceeds from the purpose intended.

f.     Use of corporate layering.

g.    Non-feasibility of the project for which financing is sought.

h.    Extra-ordinary speed in which the loan release was made.

          It said the “respondents deliberately participated in the haphazard and hurried processing and granting DVRI’s loans, though obviously aware of doubts regarding the borrower’s capacity to repay the loans, and the significant exposure facing the bank in relation thereto. Despite the irregularities surrounding the DBP-DVRI transactions, they insisted that the loans were not objectionable since the bank allegedly made a substantial profit therefrom xxx”.

          The Ombudsman also ruled that the administrative charges against former President & Vice-Chairman Reynaldo David; former DBP Chairman Patricia Sto. Tomas; former Directors Joseph Donato Pangilinan, Miguel Romero , Floro Oliveros , and Ramon Durano; former SEVP & Head of Marketing Sector Armando Samia; former SEVP Rolando Geronimo; and former Senior Assistant Vice President (SAVP) Perla Soleta be dismissed since their separation from the service preceded the filing of the complaint.

            OMBUDSMAN Morales earlier ordered the filing of Information for violation of Section 3(e) of Republic Act (RA) No. 3019 or the Anti-Graft and Corrupt Practices Act against the aforementioned  respondents.

          On the other hand, as in the criminal aspect of the case, the Decision stated that the Office finds no substantial evidence to support the administrative charges against respondents Josephine Jaurigue, Justice Lady Flores and Benilda Tejada.

Linkback: https://tubagbohol.mikeligalig.com/index.php?topic=88520.0