Albano wants Congress to summon UOBL chairman

Isabela Rep. Rodolfo Albano, has sought the inclusion of Wee Cho Yaw, Forbes Magazine-listed billionaire and chairman of the Singapore-based United Overseas Bank Limited, in the congressional inquiry into the alleged violation of the constitution, anti-dummy and banking laws during the leverage buyout of the former Westmont Bank by UOBL.

"Mr. Wee should likewise be invited again to the congressional hearing. If he has nothing to hide, then he should show up," Albano, author of House Resolution 227 seeking an investigation into certain acts committed by UOBL and UOB Philippines which are claimed to be inimical to the banking industry and economy.

In a statement. Wee said he is caught "in between" the minority shareholders and it has nothing to do with UOB. But Albano refutes Wee’s position, saying this is a resolution on the use of shell companies and banking laws.

"What Mr. Wee is referring to is a different story. My resolution does not touch on the matter between the minority shareholders," Albano said.

Albano said Wee should shed light on his previous statement that Ernest Tanchi Jr. is a close friend of his. Tanchi, a Filipino, is the principal stockholder of Manta Ray Holdings Inc., which UOBL is alleged to have used as a dummy for purposes of gaining an additional seven percent of the voting stock of UOBP in order to obtain majority control of the bank.

The Securities and Exchange Commission cited this was in violation of Section 2 (i) of Republic Act 7721, which allows foreign banks to own up to only 60 percent of the voting stock of an existing bank.

Albano said Wee’s close friendship with Tanchi surfaced in the February deposition he made in Singapore.

Albano said UOBP extended substantial loans to Tanchi-owned Harbor Holdings Inc. and Lion City Landholdings Inc. – both thinly-capitalized lacking in required assets or credit standing for purposes of obtaining any loans from other financial institutions for arms’ length transactions.

The Philippine Deposit Insurance Corp. (PDIC) likewise in its Dec. 31, 2000 findings cited UOBP misclassified directors, officers, stockholders and related interests (DOSRI) loans to Tanchi’s firms as accounts receivable in violation of the General Banking Law of 2000 or RA 8791 and the GAAP.

In Tuesday’s resumption of the inquiry, among those present were Chua Teng Hui, president and chief executive officer of UOBP and former Finance Secretary Edgardo Espiritu, whose group of investors controlled Westmont Bank.

Albano had called for the cancellation of UOBP’s license by the Monetary Board for defying anti-dummy and banking laws as well as the Constitution during the leveraged buyout of Westmont by UOBL. "If I have to file the case myself against UOBP before the Monetary Board, then I would do it," Albano said.