Pearlbank head refutes allegations of Wincorp

Pearlbank Securities, one of alleged borrowers of distraught investment house Westmont Investment Corp. said the company issued only confirmation advice slips to investors without the required promissory notes which are evidence of indebtedness.

In its reply to counterclaims of Wincorp, Pearlbank and its president Manuel Tankiansee told the Securities and Exchange Commission (SEC) that Pearlbank has documentary evidence to show the investment house's allegations are untrue.

Wincorp has filed a countersuit against Pearlbank Securities and Tan who is also a Wincorp director stockholder with a 25-percent stake in the investment firm, for P70 million in actual and moral damages.

Leonard de Vera, lead counsel for Wincorp, has denied Pearlbank's charges of fraud and misrepresentations.

Tan earlier filed an P18-million suit with the SEC, saying that without his knowledge and consent, Pearlbank was made to appear as borrower in several debt instruments issued by Wincorp to some of its investors.

"That is not true. Mr. Tan is a member of Wincorp board, he is a member of the executive committee and he is also a member of the oversight committee and he knows these transactions, he signed these transactions," De Vera said.

De Vera added that Tan was present when the original credit line in favor of Pearl Bank Securities Inc. in the amount of P250 million was approved by the Wincorp board of directors and when the same agreement was renewed and its loan ceiling increased to P850 million on May 29, 1997, during which he signed the minutes approving the amended credit line agreement.

Wincorp attached to its countersuit, the promissory notes signed by Tan to cover the loans whose proceeds he used to pay several business ventures. The Tan still has outstanding borrowings of about P460 million.

Pearlbank denied it still owes the investment firm.