MANILA, Philippines — Mandaluyong City-based AMA Rural Bank is disputing the claim of the Philippine Deposit Insurance Corp. (PDIC) that the employees of the shuttered financial institution are withholding records and documents from the regulator and, thus, delaying the payout of clients’ funds.
In a statement issued over the weekend, the bank’s management said that the deposit insurer “took custody of all bank records and documents and terminated all officers and employees of the bank” last Nov. 8, 2019, a day after the central bank ordered its closure due to insufficient assets got service its liabilities.
“Contrary to the misleading statements of PDIC during its media conference, all the records, documents, and assets of the bank were seized and sealed by PDIC and no officer or employee of the bank was allowed to touch any of the bank documents,” AMA Bank said.
The bank’s management added that employees were only allowed a short time to remove their personal effects from their desks, after which the filing cabinets, drawers, and all records of the bank were sealed with yellow PDIC tape.
“To this date, PDIC has not issued to AMA Rural Bank an inventory of the bank documents, records, and assets it took custody of,” the bank said.
Last week, PDIC said AMA Bank’s employees were refusing to cooperate with bank regulators which, in turn, was causing a delay in the payout of insured deposits to its clients.
Officials of the state deposit insurer reminded uncooperative bank staffers that they may be held accountable because of their actions.
Based on reports submitted to the PDIC as of June 30, 2019, the bank’s total deposits amounted to P1.4 billion involving 8,434 deposit accounts. For a closed bank of this size, the PDIC said it would normally pay depositors within 15 working days from date of takeover.
AMA Bank countered, however, that since PDIC terminated all their officers and employees and prohibited its directors and stockholders from interfering with the takeover, the bank was prevented from properly turning over its books, records, and assets to PDIC.
“The PDIC should not blame the bank for the consequences of the abrupt cessation of its operations, which effectively prevented the accounting of bank documents, records and assets, essential to settling depositors’ claims,” AMA Bank said.
AMA Bank said its representatives are set to meet with their PDIC counterparts to facilitate a resolution on the matter.