Former Finance Secretary Edgardo B. Espiritu expressed puzzlement yesterday at the series of news reports (not in The STAR) that linked him to several anomalies in firms that he is no longer connected with.
Espiritu also took exception to a recent statement by Bangko Sentral ng Pilipinas (BSP) Gov. Rafael B. Buenaventura that appeared to imply that Espiritu had mismanaged the Philippine National Bank, along with other PNB presidents through the years.
Buenaventura had commented that PNB has been mismanaged through the years possibly starting from the time of former President Marcos.
Past PNB presidents included Espiritu, former Central Bank Gov. Gabriel Singson, Urban Bank chairman Arsenio Bartolome and Allied Bank president Peter Favila.
However, Espiritu pointed out that during his term as PNB president from 1987 to 1992, PNB had been profitable and its non-performing loan level was quite low.
But more than the sweeping criticism of mismanagement, Espiritu yesterday reiterated his non-involvement in the recent financial problem of Westmont Investment Corp. or Wincorp.
According to Espiritu, he divested from Wincorp three years ago and resigned as a director two years ago when he joined the Estrada administration.
He pointed out that he is also creditor of Wincorp in the amount of $200 million which he has already chosen to pay for a loan of EBE Capital.
He said that even EBE Capital is no longer owned by him, but since he was the founding member of the firm, its name has not been changed.
Espiritu acknowledged though that he still has some moral obligation to talk to the remaining creditors and borrowers of Wincorp. He said he would use moral suasion to convince the creditors to pay back what they had borrowed and he would also convince those who had borrowed to pay back the investors in Wincorp.
Estrada pointed out that Wincorp is not really about to default on its obligations but is asking for time to repay its obligations over a two-year period or even shorter.
Even then, he said, assurance in the form of an asset pool comprised of some real estate assets valued at 250 times their worth has been placed with Planters Development Bank that would ensure that all creditors are paid.
Espiritu assured that any obligations of his son, John, through EBE Capital would paid in less than two years.
Wincorp recently ran into difficulties when its check clearing credit facility with United Overseas Bank Phils. (formerly Westmont Bank), was cut resulting in payment defaults totalling P7.1 billion when all other investors to Wincorp decided to pre-terminate their investments.
The Wincorp issue is controversial in that it is supposed to be a financial broker only, but was able to conduct its investment solicitation through the branches of Westmont/UOB.
Since Wincorp is not even a quasi-bank it is not even supposed to solicit such investments. Even it were a quasi-bank such solicitation can be secured only from a maximum of 19 lenders.
The BSP is in the process of investigating Wincorp on allegations that it had been taking in "deposits" and not investments.