The group asserted that on the contrary, the Singaporeans who hold the controlling majority shares of the bank are the ones who could be unseated for various violations of Philippine corporation and banking laws, as well as for gross mismanagement.
UOBP president Chua Teng Hui, a Singaporean national, asked the MB, the policy-making body of the Bangko Sentral ng Pilipinas (BSP), to disqualify the four Filipino directors of the bank for holding a news conference where they aired their grievances against the Singaporeans.
In his petition, Chua claimed that the statements made by the four Filipino board members of UOBP were issued "for no other purpose than to agitate and cause panic with the depositing public and sabotage the bank." Chua also alleged that the Filipino’s pronouncements "were calculated to trigger a run in the bank to the damage and prejudice of the bank’s depositors."
The Filipino directors maintained that Chua’s accusations will not hold water and his motion will be subsequently junked by the MB.
"The petition for our disqualification will not prosper simply because it has no factual or legal basis," lawyer Avelino M. Sebastian Jr. said.
Apart from Sebastian, the other UOBP directors covered by Chua’s disqualification plea were lawyers Victor P. Lazatin, Ferdinand A. Domingo and Alfonso Reyno Jr.
Sebastian pointed out that the grounds cited by the petitioner were not covered by pertinent provisions of the Manual of Regulations. "Mr. Chua miserably failed to establish any of grounds for disqualification."
The lawyers said under the rules, the grounds for permanent disqualification of directors included "conviction by final judgment" for offenses involving dishonesty or breach of trust such as estafa, embezzlement, extortion, forgery, malversation, swindling and theft, as well as violation of banking laws.
Another provision for disqualification covers persons declared involved, spendthrift or incapacitated to contract, and directors, officials or employees found responsible for the bank’s closure.
The lawyers also said the grounds for temporary disqualification include non-disclosure of business interest in violation of the law, absence for more than 50 percent of board meetings within one year, delinquency in payment of obligations and failure to observe or discharge official duties and responsibilities.
The Filipino directors said they will turn the table against the Singaporeans and seek their ouster "at the appropriate time and forum."
They said they would submit to the MB concrete evidence to substantiate their own charges of gross mismanagement, indulging in unsound banking practices and violations of Philippine banking laws.