Ongpin plans criminal suit vs BSP official

MANILA, Philippines - Former Trade Minister Roberto V. Ongpin is planning to file criminal charges against a top Bangko Sentral ng Pilipinas (BSP) official for allegedly violating the anti-graft law by causing him undue injury.

In a statement issued yesterday, Ongpin said the criminal suit would be based on BSP Deputy Governor Nestor Espenilla’s conflicting positions on the businessman’s purchase in 2009 of Philex Mining Corp. shares owned by the Development Bank of the Philippines.

Ongpin cited Espenilla’s testimony during the Senate hearings held last year where the latter allegedly said the loans used in the purchase of Philex shares were “prudent and positive and resulted in trading gains for DBP.”

He claimed Espenilla subsequently retracted his position when the BSP official (as acting chairman of the Anti-Money Laundering Council)  signed in November 2012 a petition to the Court of Appeals stating that the DBP loans extended to one of the country’s billionaires were “irregular and “behest”.

Espenilla likewise asked the Court of Appeals to issue a freeze order on Ongpin’s bank accounts, which the CA granted.

The case stemmed from a complaint against Ongpin and his company Deltaventure Resources for having allegedly obtained behest loans amounting to P660 million. These loans were the subject of investigation by the Senate Committee on Banks and Financial Institutions in 2011 to early 2012.

“My reputation above all else is of the highest value and most sacred to me.  I have spent a lifetime, both in government service and in the private sector establishing it.  I will not permit anyone, not even a deputy-governor of the Bangko Sentral, to tarnish it by his frivolous, baseless and reckless accusations against me,” Ongpin said.

“Espenilla has caused my reputation the gravest damage by his signing an ex-parte petition with the Court of Appeals that my bank accounts be frozen.  This action, which is totally without basis is never taken lightly by anyone, not my international business partners, and certainly not by the investing public, which has lost for me several billions in market value of my listed shares.  I cannot allow Espenilla to take this most serious action, whether deliberate or not, and let him get away with it,” he added.

Ongpin said the loans acquired from DBP have been fully paid well before maturity and with full interest.

“And because of these transactions, DBP was able to earn profits, including trading gains, of P1.4 billion,” he said.

Ongpin argued that the DBP loans constituted merely 17 percent of the total financing raised from six financial institutions for his acquisition of Philex shares

The Anti-Graft Law punishes public officers who cause undue injury to any party in the discharge of his official functions through manifest partiality, evident bad faith, or gross inexcusable negligence.

“Espenilla’s contradictory position on the DBP-Philex transactions is a clear case of gross inexcusable negligence, to say the least,” Ongpin said.

Ongpin likewise pointed out that no case has been filed against him in any court in this country to date.

“As such it is clear that the undersigned has not been charged in court, much less convicted of any misdemeanor,” he said.