Quantcast
Latest Stories

PDIC files criminal case vs ex-officials of Exportbank

By

MANILA, Philippines–Philippine Deposit Insurance Corp. filed a criminal charge against the former chair and officers of closed Export and Industry Bank, alleging that they engaged in an unsafe and unsound business practice that put the bank in a disadvantage.

In a statement, PDIC said investigations by its legal team revealed that EIB spent P4.8 million in so-called success fee, P3 million of which was disbursed to a certain company named AO Capital Partners Ltd., which is engaged in investment banking.

The chair of the said company, Jaime Gonzales, is the same guy who served as former chair of EIB, the state-owned deposit insurer noted.

Success fee is payment for an undertaking that has been successful.

A person familiar with the matter said that in the case of EIB, the bank paid the success fee to AO Capital Partners, services of which were tapped to look for a white knight that will invest in EIB. Back then, the bank badly needed an investor to help prevent an imminent closure due to its financial troubles.

But the source said the fact that EIB failed to get an investor, it should not have paid any success fee. The fact that bulk of the fee went to a company whose chair is the same man who used to serve as chair of EIB made the bank liable for unsafe and unsound banking practice.

PDIC said the persons charged before the justice department violated provisions of the General Banking Law, which requires banks to refrain from transactions that is disadvantageous to their financial standing. The law recognizes that banks have a duty to observe safe and sound banking practices for the sake of their depositors and creditors.

Besides Gonzales, other bank officers charged before the Department of Justice were the following: former presidents Juan Victor Tanjuatco and Nilo Pacheco, former vice president and chief financial officer Teresita de Ocampo, former senior vice president and treasury head Alex Luis Pesigan, and former vice president for risk management Adeline Grimares.

Finance Secretary Cesar Purisima, who concurrently serves as chair of PDIC, said the filing of the case was important as this signals the obligation of banks to conduct business in a manner that is above board and that does not place at risk the interest of stakeholders, more so of depositors.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Business , crime , Exportbank , investment banking , `success fee’

  • carl son

    Go! Go! PDIC. Please go more deeper. This may only be a tip of the iceberg. This is what we want to hear from you. We have been waiting and asking this from you ever since we have depositors forum. The amount involved is minimal. Please uncover more. We lost so much of our hard earned money because of them. If we can only find a way, we will put bullets to their head just to compensate the miseries we are suffering right now.



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Nebraska toddler gets stuck inside claw machine
  • Philippine eagle rescued by Army turned over to DENR
  • Gunmen attack Iraq military base, kill 10 soldiers
  • South Korea president shouted down by distraught parents
  • Classmates celebrating 60th birthday among missing in ferry sinking
  • Sports

  • Power Pinays smash India in Asian Women’s Club volleyball opener
  • PH youth boxers off to stumbling start in AIBA World tilt
  • Durant has 42, Thunder beat Pistons 112-111
  • Walker leads Bobcats over Bulls in OT, 91-86
  • Man City slips further out of title contention
  • Lifestyle

  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • This is not just a farm
  • Clams and garlic, softshell crab risotto–not your usual seafood fare for Holy Week
  • Moist, extra-tender blueberry muffins
  • Entertainment

  • Jones, Godard, Cronenberg in competition at Cannes
  • Will Arnett files for divorce from Amy Poehler
  • American rapper cuts own penis, jumps off building
  • Jay Z to bring Made in America music fest to LA
  • Why Lucky has not bought an engagement ring for Angel
  • Business

  • Total says makes ‘very promising’ oil find off Ivory Coast
  • ‘Chinese Twitter’ firm Weibo to go public in US
  • World stocks subdued, Nikkei flat on profit taking
  • Asia stocks fail to match Wall Street gains
  • Fired Yahoo exec gets $58M for 15 months of work
  • Technology

  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Filipinos #PrayForSouthKorea
  • Taylor Swift tries video blogging, crashes into fan’s bridal shower
  • DOF: Tagaytay, QC best at handling funds
  • Smart phone apps and sites perfect for the Holy Week
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • DFA: 2 Filipinos survive Korean ferry disaster
  • PH asks airline passengers to check for MERS
  • Syria most dangerous country for journalists, PH 3rd—watchdog
  • Japan says visa-free entry still a plan
  • First Fil-Am elected to Sierra Madre, Calif. city council
  • Marketplace