BSP, Monetary Board need not give P25-B aid to Banco Filipino

MANILA, Philippines—The Court of Appeals on Friday reversed the decision of the Makati City Regional Trial Court that ordered the Bangko Sentral ng Pilipinas (BSP) and the  Monetary Board to provide up to P25 billion in financial assistance to the now closed Banco Filipino Savings and Mortgage Bank.

In a 25-page decision, the appeals court, through Associate Justice Hakim Abdulwahid, said the trial court should have not acted on the case for lack of jurisdiction.

“The RTC has no jurisdiction over the petition for certiorari and mandamus filed by Banco Filipino,” Abdulwahid said in his ruling, adding that it is the appellate court that has jurisdiction over the petition based on the 1997 Revised Rules of Civil Procedure.

Last March, the Court of Appeals issued a writ of preliminary injunction against the order of Judge Joselito C. Villarosa directing the central bank and the Monetary Board to implement the aid package order he issued on November 19, 2009.

The appeals court last March said the BSP and the MB could suffer grave and irreparable injury if the trial court’s order was not enjoined pending the decision on the merits of the case.

In its new ruling, the appeals court said the injunction order is now permanent.