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The Rise and Fall of Maribojoc Rural Bank
« on: May 17, 2009, 12:16:16 AM »
By the Sunday Post

Maybe unknown to many of its clients, the collapse of the Rural Bank of Maribojoc was tied up to the botched deal to develop a multi-million subdivision project in Tiptip district this city.

The unfolding drama also soured the relations of two long  time business associates—Restituto Tan, the bank owner, and the Pinoliad siblings.

Spanning 40 years of  friendship, what once was an epitome of close friends doing business with each other, is now becoming the worst of enemies.

As close friends before, they are now locked in a bitter legal battle resulting in the filing of estafa by Tan against his former associates. 

The root cause of the legal skirmish was the plan to rehabilitate the rural bank of Maribojoc when it was found to be suffering from inadequate capital. This triggered the eventual closure of the bank..

The friendly relations broke up after the Pinoloads—Carlito, a CPA, Julieta and Eugenia, an architect, proposed to Tan to develop a four-hectare property in Tiptip.

As envisioned, the subdivision project was to sell houses and lots to interested buyers and made money out of it to cover the capital deficiency of the bank. 

In a letter complaint filed with the city prosecutor’s office, Tan accused the Pinoliads of having failed to remit reservation fees amounting to P450,000.

Pre-selling the lots, the respondents collected P15,000 for each subscriber-applicant. The breakdown of the amount is P7,000 for reservation fee and P8,000 for processing charges. As of last report, about 30 applicants were known to have parted with their money.

The role of the Pinoliads in the transaction was that of a joint venture partner taking into consideration Carlito’s profession as a CPA and Eugenia as architect.

During the initial stages of the project, it was agreed between the landowner (Tan) and  the developers (Pinoliad), that at least three to four units were to be completed in a month’s time.

The target number of housing units was 310 to be completed  in a period of  six to seven years  and scattered in the  four hectare property.


Christened  Bethany Subdivision,  there seemed to be no  problem from its inception to the  signing of the final agreement of the joint venture project.

What apparently was the wedge that drove the two parties apart was when the developer failed to fulfil their end of the transaction.

Meanwhile, Tan alleged in his complaint, while there was no dramatic accomplishments obtaining in the rawland, the respondents caused to have printed an official receipt to legitimize the collection of reservation fees. The businessman said he was not informed of the receipt printing but his name appeared in the document nonetheless.

Saddled with capital inadequacy of his bank, what looked like a “knight in a shining armor” came into the picture.

This came in the form of Joanna Legacy Homes, Inc., another developer, recommended by the regional office of Pag-ibig Fund as new partner of the Tans and the Pinoliads.

The recommendation carried with it the caveat that the Pinoliads as developer lacked the required qualification while the new partner, a company based in Mandaue City has an excellent track record as developer-builder of socialized housing projects of the Pag-ibig Housing Program.

As this developed, the Tans, the Pinoliads, Joanna Legacy Homes and Pag-ibig formed a four- party contract to undertake the project.

In the Memorandum of Agreement signed by the four parties, it was agreed that Tan would  receive a whooping P55 million representing the sale of the entire property courtesy of the new partner while the Pinoliads were entitled to P8 million as a second party to the undertaking. This means that by “sitting pretty”, the Pinoliads were entitled to a cool P8 million.

A provision was however stipulated to the amount due to the Pinoliads.

The new developer would give the amount of P8 million provided the Pinoliads would advance the amount of P500,000 upon the turnover of all original or certified true copies of documents related to the implementation of the Bethany Village Subdivision Project.

With this provision in the agreement, Tan was made to understand that his original partners would fulfill their part of the bargain.

He was wrong.

Despite repeated demands, the Pinoliads refused to turn over the documents in their possession prompting the new partner to back out.

In a letter dated January 22, 2009, Danilo Suarez of Joanna Legacy Homes informed the Tans and the Pinoliads that his company was rescinding the contract citing the failure of the later to fulfil their contractual obligations to the agreement:

   1. To turnover all original or certified true copies of documents related to the implementation of the Bethany Subdivision.


   2. To render an accounting of all subdivision buyers booked prior to the execution of the subject contract, as provided for under item No. 6.



In their own counter-affidavit which they filed before the city prosecutor’s office on May 8, 2009,Carlito, Eugenia and Julieta Pinoliad, denied most of the accusations of Tan in his complaint.

The Pinoliads said that the allegations were utterly false, without legal and factual basis, malicious and borne out of “his devious intent to deprive” us of the legitimate fruits of our professional; efforts and services, and our joint venture housing project.

They said that contrary to Tan’s allegations, the development of the subdivision was originally a joint venture project with the Pinoliads as co-ventures/partners.

The same joint affidavit indicated that the joint venture project was conceptualized by Carlito Pinoliad for the complainant, to help bail out the complainant and the Rural Bank of Maribojoc of which Tan is the majority owner, out of his financial crisis and his personal liabilities to the bank.

During the heydays of their friendship, aside from being the accountant of Tan’s businesses, Carlito was also made president of the shuttered bank.

The  bank one of the oldest in Bohol, suffered a major setback leading to its closure. It was affected also by the fall of rural banks affiliated with the Legacy Group.

Last week of January, it declared a bank holiday after suffering from panic withdrawals. The bank had since been  under receivership by the Philippine Deposit Insurance Corp. The PDIC is now processing claims for insured depositors.

According to Tan, had the P55 million proceeds of the  Bethany deal materialized, the bank would have had enough cash to service panicky clients. All he needed at that time was only about P40 million and he would have been richer still  by P15 million.

Meanwhile, his former partners, the Pinoliads, would have enjoyed P8 million without sweating it out in the scorching Tiptip sun while Joanna Legacy Homes is doing its part of the four-party joint venture.

Romans 10:9-10
"If you declare with your mouth, Jesus is Lord, and believe in your heart that God raised him from the dead, you will be saved. For it is with your heart that you believe and are justified, and it is with your mouth that you profess your faith and are saved."

Where to Stay in Bohol? Book at Dao Diamond Hotel and Restaurant in Tagbilaran City. Online reservation at:

bol-anon nga cebuano

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Re: The Rise and Fall of Maribojoc Rural Bank
« Reply #1 on: May 19, 2009, 12:40:37 AM »
does joanna legacy also part of the legacy group of companies?
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