BSP execs deny graft raps over Banco Filipino closure

MANILA, Philippines- Officials of the Bangko Sentral ng Pilipinas (BSP) yesterday denied graft charges filed against them before the Department of Justice (DOJ) by top executives of Banco Filipino Savings and Mortgage Bank in connection to the bank’s closure last March.   

BSP Governor Amado M. Tetangco Jr., deputy governor Nestor Espenilla Jr., deputy governor and general counsel Juan de Zuniga Jr., and Monetary Board members Juanita Amatong, Alfredo Antonio, Ignacio Bunye and Peter Favila submitted their counter-affidavit to the DOJ panel chaired by Senior State Prosecutor Rosanne Balauag during hearing.   

All seven officials of BSP said they did not violate Section 3 (e) of RA 3019 (Anti-Graft and Corrupt Practices Act) in ordering Banco Filipino’s closure after denying the grant of emergency loans needed by the bank under an emergency situation.   

Through lawyer Sandra Coronel, they argued that the government is not required by law to rescue embattled banks that have failed to comply with BSP’s rules and regulations.   

“They (Banco Filipino) expect the government to bail them out. That’s really unfair and illegal, that is why BSP resisted the demand to bail them out. BSP and Monetary Board officials have to defend their decision in a forum like this that it is really not proper to use government funds to bail them out,” the lawyer explained to reporters after the hearing.   

The BSP also asked the DOJ to dismiss the graft complaint filed against them last month by the bank for forum shopping, Coronel said Banco Filipino already filed earlier two criminal cases against her clients before the Office of the Ombudsman for extortion and for violations of the General Banking Act in connection to the closure.   

Last Mar. 18, the BSP ordered the closure of Aguirre family - owned bank for insolvency after its liabilities overwhelmed its assets by P8.4 billion, prompting monetary authorities to prepare charges against the board of directors and officials of the bank. It also placed Banco Filipino under the receivership of the state-run Philippine Deposit Insurance Corp. (PDIC).   

The decision, BSP officials said, would provide immediate relief to the bank’s 177,652 depositors.