13 DBP execs dismissed over behest loan fiasco


Ombudsman Conchita Carpio Morales. INQUIRER FILE PHOTO

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:

a.     under-collateralized.
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.

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Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.

  • samuel

    At last gumagana na rin ang Gulong ng Hustisya, No Pension Benefits, ha ha ha pupulutin na kayo sa kangkungan… Good Job, Ombudsman Morales. It shows na walang mayaman at mahirap sa hustisya a clear sign na may pag-asa pa ang pinas, more power and good health. God will bless you para tuloy-tuloy ang pagtugis sa mga kawatan. at ang bilis na magdecide ng ombudsman…

  • George

    Dismissed only? Throw them into jails.

    • lagalag

      I second the motion.

  • George

    PDIC heads should also be investigated for failure to police the banks from failures. How many banks had failed and yet PDIC are earning from failed banks like export bank. Nobdy is being prosecuted from this bank failure. PDIC in fact is earning while banks failed.

  • otoling

    Bakit, bakit, bakit na ang mga ito ay mga nangyayari na nadi-desisyunan sa panahun (term o pagka-tao) ng isang si Justice Conchita Morales, pero hinde nangyari sa terminos nila Merciditas Guttieres, Devenadera, Marcelo, Desierto, and other down the timeline?

    Bihira talaga ang breed line na mga tao (sa loob ng isang century) na tulad nila Magsaysay, Tanada, Satur O., Ka Pepe Diokno, Saguisag, the Aquinos, atbp. 

  • marcial

    should serve these crooks right. dapat makulong din.

  • les21reago

    Yung mga natanggal HINDE niyo naalala ang paghihirap nang inyong INA nang linalasap niyo ang NAKULIMBAT niyo sa gobyerno.
    KUNG hinde niyo SINUWAY ang NANAY niyo di sana kayo nagkaganyan…
    NGAYON ang pag asa niyo na lang ang GUMAWA nang Party List at PORK BARREL naman ang makaharap niyo mga LETCHE?

  • RyanE

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

    Hmm.. I can perceive the shadows of a big fat man and a small lady..

    Kudos to the Office of the Ombudsman! 

  • johndcross1

    Mabuhay si Ombudsman Conchita Carpio Morales.  Yung mga lintik na opisyales ng DBP naalies sa puesto, yan ang bagay sa inyo. Forfeiture of retirement benefits & civil service eligibility, perpetual disqualification from holding public office, barring from taking civil service examinations.  Include also jail time, sa mga hayop na ito.

    Yung si Ongpin kailan namin malaman kung siya ay ipakulong?  Dapat sa kanya ibala sa kanyon patungong Bejing.

  • Barak_O

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    free training on defensive and evasive wheelchair driving

    for the first 100 to place an order

    delayed or reduced jailtime guarantee

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    • Protect_Cheap_Dog

      How about a neck brace, do you have it too?

      • Barak_O

        we can fit one for you while you wait

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  • Dolph

    buti nga sa inyo mga HAYOP kayo!

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