MANILA, Philippines–The government has filed criminal charges against former executives of the Export and Industry Bank (EIB), which was ordered closed by the central bank in 2012 because of financial mismanagement.
The EIB was found to have irregularly lent money to its sister companies at the behest of several executives led by its former chair, Jaime C. Gonzalez. The company’s board and other members of top management were kept in the dark about these transactions.
According to state-run Philippine Deposit Insurance Corp. (PDIC), the respondents “connived to misappropriate EIB funds… to fast-track the purchase of several properties in Batangas (Batangas) for the benefit of [affiliate] Arthaland Corp.”
A syndicated estafa complaint was filed against Gonzalez; Juan
Victor S. Tanjuatco, former EIB president and director; Aurea I. Yamsuan, former EIB vice president; Teresita Q. de Ocampo, former EIB chief financial officer; Riva Khristine V. Maala, former EIB assistant corporate secretary; Angela de Villa-Lacson, Arthaland Corp. president; and Froilan Q. Tejada, Arthaland chief financial officer.
Irregularities
Respondents were also charged for irregularities and for conducting business in an unsafe and unsound manner in violation of the amended Republic Act No. 3591, also known as the PDIC Charter.
The complaint is based on an investigation conducted by the PDIC following the EIB’s closure in 2012.
The EIB, a 50-unit commercial bank, was ordered closed by the Bangko Sentral ng Pilipinas Monetary Board and placed under PDIC receivership in April 2012.
The PDIC said the bank issued a loan of P9.7 million to fast-track the purchase of several properties in Batangas for Arthaland, a company owned by Gonzalez.
“The respondents allegedly continued to misappropriate EIB’s funds when these were unlawfully disbursed to cover for the management and other expenses of the Batangas properties,” it said.
In a statement on Tuesday, Arthaland’s management said it had repaid the loan in full in 2011. “Arthaland’s operations and projects remain on track and unaffected,” it said.–Paolo G. Montecillo and Jerome Aning