UOB seeks disqualification of 4 directors

The United Overseas Bank of the Philippines (UOBP) has asked the Monetary Board to disqualify four of its directors for allegedly trying to trigger a bank run.

In a letter to the Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP), the UOBP asked for the disqualification of directors Avelino Sebastian Jr., Alfonso Reyno Jr., Victor P. Lazatin and Ferdinand A. Domingo.

UOBP president and chief executive officer Chua Teng Hui said the four directors held a press conference recently "to agitate and cause panic with the depositing public and sabotage the bank."

Chua pointed out that directors are placed in their position to look after the interest of the bank. "In gross violation of their duties, they gave gravely damaging and incorrect statements to the press if only to further the interests of the minority shareholders, even if it meant sabotaging the bank."

Aside from expressing apprehension towards further damaging the bank, the bank president said that the actions of the directors would cause indirect damage to the entire banking system.

BSP Deputy Governor Alberto Reyes said that they would form a special committee to investigate the issue.

"We will give due process to both parties involved as warranted. We will also write the directors involved to explain their side while UOBP has to make specific the basis of their allegations," Reyes stressed.

Chua said the statements issued by the directors identified with the minority shareholders were "completely false and misleading…calculated to trigger a run in the bank to the damage and prejudice of the depositors."

"The disputes the minority shareholders have with majority shareholders should be properly ventilated before the BSP or the courts as the case maybe," he added.

The minority group referred to by Chua is the group headed by John Espiritu, son of former Finance Secretary Edgardo Espiritu, and Jollibee Foods Corp. president Atonio Tan Caktiong.– Ted Torres