Banker arrested for DOSRI violations

MANILA, Philippines - A Baguio City trial court has convicted banker Gamaliel de Guzman Ledda Jr., former vice president of the Homeowners Savings & Loan Association Inc. (HOSLA) who was arrested early this month by a combined team of agents from the National Bureau of Investigation and the Bangko Sentral ng Pilipinas (BSP).

Ledda was charged last October 2001 before the Regional Trial Court of Quezon City (RTC-QC), Branch 222, with violation of Section 83 of Republic Act (RA) 337, as amended by Presidential Decree (PD) 1795 (DOSRI law provision), in relation to Section 36 of RA 7653, for diverting the proceeds of a fictitious loan to his own company. 

HOSLA has since closed. With his arrest, the BSP will revive other cases against Ledda.

In a statement, the BSP said violation of banking laws by bank directors and officers will be prosecuted to the fullest extent of the law.