"We categorically say that the complaint by Winston Garcia is without basis," lawyer Nilo T. Divina, Equitable Bank executive vice president, general counsel, and corporate secretary, said in a letter to the Philippine Stock Exchange (PSE) dated July 5.
Divina admitted that the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) wrote them about the failure of the bank’s subsidiary, EBC Investments Inc. (EBCII), to comply with an earlier directive to dispose of its holdings of the bank shares. "But we were not rebuked nor rebuffed," he added.
EBCII was also instructed by the BSP that the adequate valuation reserves be provided on the Equitable Bank shares, based on paragraph 31 of SFAS 10.
On the issue of Presidential Adviser Roberto R. Romulo being appointed as independent director to the bank’s board, Divina said that Romulo "has all the qualifications and none of the disqualifications of an independent director."
Government Service Insurance System (GSIS) president and general manager Winston Garcia has lodged a criminal complaint against Romulo, Antonio Go, Anthony Conway, Peter Go Pailan and Divina "for conspiring to perpetuate the artificial majority of the Go family in Equitable PCI Bank (EPCIB) by appointing Romulo as an independent director, despite prior knowledge that the latter was not qualified for the position."
Garcia alleged that Romulo violated regulations by accepting the EPCIB directorship despite knowledge that he is not qualified, having been a member of the board of directors of Equicom Systems Management Inc., a joint venture between the Equitable Group and Telus International.
"Romulo, along with Go, Conway, Divina and Go Pailan conspired with one another to withhold such information from the bank stockholders and other members of the nomination committee and the board of directors," Garcia said.
Romulo is also facing serious administrative and criminal charges filed by former solicitor general Francisco Chavez before the Sandiganbayan for conflict of interest.