PDIC to sue AMA Bank brass, employees

Philippine Deposit Insurance Corp. (PDIC) said it would sue officials and employees of AMA Rural Bank of Mandaluyong Inc. for their refusal to cooperate with authorities after a 24-hour deadline for their cooperation lapsed without substantial compliance in helping sort out the bank’s financial records.

In a statement issued on Thursday, PDIC said directors, officers, employees and the corporate secretary of the shuttered financial institution would face criminal complaints for “refusal to comply with their legal duty to account for and turn over bank records under their accountabilities.”

PDIC gave the accountable individuals one day to report to the receiver and comply as mandated by law, but only 16 accountable employees of the bank reported to its premises as of Nov. 19, 2019.

The rural bank was ordered closed by the central bank earlier this month for being unable to meet all its liabilities, and was taken over by the deposit insurer the following day. However, the agency said intransigent employees had stalled the process, leading to a delay in the payout of insured depositors.

PDIC has since sealed the bank’s equipment, vaults and cabinets containing bank records.

After the 24-hour deadline expired, PDIC commenced the inventory-taking with a person-in-authority as witness.

It also sought the assistance of government authorities in the conduct of investigation on possible fraud, irregularities and anomalies that might have been committed in the bank.

PDIC said its charter specified that refusal to turn over or destroying or tampering bank records by any director, officer, employee or agent of a bank were punishable with imprisonment of not less than six years up to 12 years, or a fine of not more than P10 million, or both, at the discretion of the court.

“When a bank is served a notice of closure, employment is terminated by operation of law but directors, officers and employees who hold assets, records, documents in trust or under administration have a duty to account for and surrender these to the receiver as well as provide information relating to the assets or records,” it said.

PDIC assured the public that alternative plans were being pursued to minimize delay in the payment of deposit insurance to all insured depositors of AMA Bank.

It has started meeting with depositors and borrowers to provide updates on PDIC’s operations at the bank’s premises on Thursday for those at the head office, and its branches in Pasig City, Pampanga, Baliuag, Calamba City and San Pablo City. The schedules of meetings with depositors and borrowers in the other branches are being announced through the PDIC’s website and its social media accounts.