Legal counsel of the Filipino group led by John Espiritu asserted that "it was the Singaporeans who proposed the scheme and even had their lawyers prepare the transfer agreement for our client’s concurrence."
Lawyer Arnold "Jake" Corporal of the ACCRA Law Offices branded the Singaporeans’ allegations as "utterly false, misleading and meant to further muddle the issue."
Corporal pointed out that the Filipino investors had originally opted for outright cash payment of their controlling interest in then troubled Westmont Bank in November 1999 when the Singaporeans bought in and renamed it into what is now known as UOBP.
"But out of the goodness of their heart, coupled by their sincere concern to nurse it back to profitability, the Filipino shareholders agreed to the loan transfer scheme. Unfortunately, the Bangko Sentral ng Pilipinas (BSP) rejected the plan and ordered the bank to reinstate the affected political loans in the bank’s books," the lawyer said.
He branded as "incorrect" the Singaporean’s claim that the Filipino shareholders approved the proposed sale of the loan assets to themselves in return for surrendering majority interest equivalent to 60-percent shares in the bank.
"Worse, no alternative solution to the disapproved loan transfer formula was adopted, hence the Filipino group was left holding an empty bag," Corporal stressed.
He added that while his clients were pressing for payment of their shares, the Singaporeans tried to turn the tables against the Filipinos by accusing the Tan Caktiong group of reneging on a commitment to infuse P1.6-billion fresh capital.
Lawyer Avelino Sebastian Jr., a board director of UOBP representing the Tony Tan Caktiong group, has dismissed the accusation as "completely baseless and misleading," adding that the Singaporeans "deliberately suppressed key elements of the transaction that will exculpate the Filipino group."
"Clearly, this is now a case of who is telling the truth. It is the Singaporeans’ words against our clients,’ and only the proper forum can resolve this standoff by digging up the truth to come up with an impartial and logical decision," Corporal said.
He also cited an impending congressional inquiry on the UOBP controversy as a development that would eventually pave the way for a mutually acceptable solution for the conflict.
Meanwhile, former Finance Secretary Edgardo Espiritu was reportedly considering the filing of libel charges against certain UOBP officials for unnecessary dragging his name into the mess.
Westmont actually started as Associated Bank which the Espiritu group acquired from the government and rehabilitated.
The Espiritus divested all their interest in Westmont after he assumed the finance portfolio in 1998. However, the remaining Filipino shareholders wanted his son, John, to remain a part of the bank’s management.
Corporal deplored that the statements were attributed to no particular UOBP official "in an apparent attempt to hide under a cloak of secrecy and evade legal action for their irresponsible and unfounded accusations."
Earlier, the Filipino group accused the Singaporeans of gross mismanagement, as well as various violations of the Philippine corporation and banking laws, resulting in substantial losses for the bank. Citing official records, Sebastian said the bank’s losses for 2001 alone reached P969.7 million.