Espiritu breaks silence on Wincorp issue

Former Finance Secretary Edgardo B. Espiritu finally broke his silence yesterday amid continued attacks against him and allegations of financial wrongdoing with regards to Westmont Investment Corp. (Wincorp).

Espiritu said up to this day he has not been investigated in his personal capacity as having been directly involved in the financial problems of Wincorp.

He pointed out that unlike Urbancorp Investment Inc. and ASB Realty, Wincorp has not declared any suspension of payment nor has it made a request for such a relief.

He said that Wincorp has never sought a trust license from the Bangko Sentral ng Pilipinas (BSP) and is not a subsidiary or affiliate of any bank even though it was named after the former Westmont Bank.

The former finance chief reiterated that his participation in Wincorp was way back in 1995 when he was offered a 10-percent equity in the firm.

Espiritu said he had divested his stake in almost all companies he was connected with almost three and a half years ago following his appointment to the Estrada Cabinet.

Westmont Bank was organized by Espiritu in 1994 and rehabilitated from the former Associated Bank.

Westmont was 40 percent owned by Malaysian investors, 20 percent by Espiritu through a 10-year management contract and 10 each by the Cua family, Manny Tan and the Sta. Lucia Group.

In 1995, Espiritu said, the Cua family, Sta. Lucia and Manny Tan decided to put up Wincorp. Since the Malaysians were not among the investors, he said, Wincorp was not considered a subsidiary of the bank.

Wincorp's was 25 percent owned by the Cua family, 25 percent by the Sta. Lucia Group and 25 percent by Manny Tan.

Espiritu said he was invited to participate in the firm and given 10 percent. Alfonso Reyno was also offered a stake of 10 percent while Manuel Estrella got a five-percent stake.

However, Espiritu said, he eventually divested from Wincorp when President Estrada ran for president and he was being asked to join the Cabinet.

The only relation that Wincorp had with Westmont, Espiritu insists is the overdraft line it had in February.

Even then, he said, Westmont, which is now United Overseas Bank, has been paid for that overdraft.

Wincorp, Espiritu said, has not requested for a suspension of payment and in fact, its borrowers and lenders are trying to work out a schedule of repayment over a two-year period or less.

He also clarified that one borrower of Wincorp has been EBE Capital which is controlled by his son John.

However, EBE Capital has not defaulted on its loans and has paid so far P300 million in cash and will continue to do so and is merely asking for a longer repayment period of two years or less.