BSP files criminal raps vs rural bank officials

The Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas (BSP), approved yesterday the filing of criminal charges against top officials of the Rural Bank of San Miguel (Bulacan).

In a statement, the BSP said it filed with the Department of Justice criminal charges of estafa and violation of Section 83 of Republic Act No. 337, as amended by Presidential Decree No. 1795, otherwise known as the General Banking Act against Hilario P. Soriano, RBSM president and director.

Other RBSM directors charged include Rosalinda Ilagan, formerly branch manager and now director of the Bulacan-based rural bank.

The court suit was an offshoot of recent move of the Monetary Board to close RBSM for failure to meet liabilities as the fell due. RSBM declared a bank holiday on Jan. 4, 2000.

Based on affidavits and other documents supporting the charges, it appears that Soriano indirectly obtained a DOSRI (director, officer, shareholders and related interests) loan of P15 million from RBSM under the account of Virgilio Malang of San Miguel, Bulacan who denied having any loan or liability with RSBM.

It also appeared that Ilagan pointed to Soriano as the actual recipient of the loan proceeds and that the loan remains unpaid until now.

According to a reliable source, this is the first of a series of criminal charges that the BSP will file against Soriano based on the examination of the books and transactions of the RBSM which appear to violate central bank laws.

Soriano was earlier charged by his brother Antonio Soriano for estafa through falsification of documents involving RSBM pending with the Regional Trial Court of Manila, Branch XXVI.

The Securities and Exchange Commission, in Case No. 4313, directed Hilario, to reconvey to his brother Antonio, 1,531 common shares of RBSM.

An official of the Rural Bank Association of the Philippines, in an earlier interview, said they are also planning to file charges against the BSP for failure to extend help to the bleeding rural bank.