BSP clears DBP prexy

The Bangko Sentral ng Pilipinas (BSP) has dropped charges of violations of banking laws on Development Bank of the Philippines (DBP) president and chief executive officer (CEO) Remedios L. Macalincag. However, the BSP issued a show cause order on former DBP president Alfredo C. Antonio.

In a letter dated Jan. 3 this year, the BSP said that it was dismissing charges by junior officers and employees of the bank on Macalincag and lawyer Don Villamayor with regards a number of loans under its executive loan program (ELP).

"We wish to inform that the Monetary Board (MB) in its resolution 1817 dated Nov. 15, 2001 decided to dismiss the charges against Macalincag and Villamayor," it said.

However, it was imposing a fine on the bank in the amount of P8,800 for violation of Section 1337.4 of the Manual of Regulations for Banks for delay in the submission of the ELP to the monetary authority.

It likewise imposed a fine of P30,000 on Edgardo F. Garcia, DBP senior executive vice president and chief operating officer while it withheld chareges on banks vice president Eduardo L. Estevez "pending receipt of his explanation on why he should not be held administratively liable."

The letter, signed by BSP Deputy Governor Alberto V. Reyes challenged Antonio to explain why he should not be slapped with administrative charges of approving the questionable loans of Garcia.

Reyes added that pending any decision on Antonio’s case, he would be placed on a watchlist, which will disallow him to be elected or appointed as director or president to any bank.

Antonio reported approved an ELP worth P3 million for Garcia in violation of Section 19n of the bank’s revised charter. – TPTorres