MANILA, Philippines–Ombudsman Conchita Carpio Morales dismissed from service 13 officials from the Development Bank of the Philippines (DBP) for granting P660 million in behest loans to Deltaventures Resources, Inc. (DVRI) in 2009.
In a 54-page review decision signed on November 21 but released Thursday, Morales dismissed former Directors Benedicto Ernesto Bitonio Jr., Alexander Magno, Renato Velasco, and Franklin Velarde; former 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 ManagerMarissa Cayetano; former AVP Teresita Tolentino; RMC-MM Assistant Manager Rodolfo Cerezo; and RMC-MM Assistant Manager Warren de Guzman.
Morales said they were administratively liable for “grave misconduct and conduct prejudicial to best interest of the service”. Aside from dismissal, their eligibility has been cancelled.
There are also other accessory penalties included such as forfeiture of their retirement benefits, perpetual disqualification from holding public office and barring them from taking civil service examinations.
Based on the decision, DBP extended two loan facilities worth P150 million and P510 million in April 2009 and November 2009, respectively, to DVRI.
However, Morales said the loans were considered behest. He said this was based on Memorandum No. 61 dated 09 November 1992, which defined behest loans as:
b. The borrower corporation was 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.
“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 he 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…,” the decision stated.
Meanwhile, Morales said the administrative case 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) PerlaSoleta should be dismissed since their separation from the service preceded the filing of the complaint.
With regards to the criminal aspect of the case, Morales said they could not find any substantial evidence to support the administrative charges against respondents Josephine Jaurigue, Justice Lady Flores and Benilda Tejada.