In a two-page resolution, Associate Justice Cancio C. Garcia denied for lack of merit the motion filed by BSP Deputy Governor Alberto V. Reyes, Director Wilfred Domo-ong, and BSP examiner Herminio C. Principio.
Earlier, the Monetary Board absolved the three officials on charges of "unprofessionalism, careless mishandling of confidential matters, exertion of unwarranted pressures, and illegal and unethical act of brokering." The charges were filed by RSBM principal stockholder and president Hilario P. Soriano.
RSBM was the largest bank in Bulacan and the oldest rural bank in the country.
The court noted that "Reyes undue interest in brokering the sale of the RSBM, which surfaced on several occasions, was illegal."
"After a second hard look at the facts admitted no less by Reyes, the latter’s acts indeed constituted brokering."
In a decision, the CA found Reyes, Ong, and Principio guilty in perpetrating an orchestrated scheme to pressure the RBSM to sell itself by subjecting the bank to many impositions through the Monetary Board.
The declaration by the BSP that RBSM had capital deficiency sent jitters to depositors, borrowers, businessmen, and employees, prompting them to withdraw their deposits from the bank.
Soriano said "the CA decision shows its firm resolve to penalize the guilty and serve justice to victims of oppression."
"I pray that the rural banking industry be given more protection and compassion by the BSP so that it may be effective in performing its mandate to alleviate poverty, being pushed by President Gloria Macapagal Arroyo," he said.