DBP probe on transactions conducted 'by the book'

MANILA, Philippines - Audit investigations being undertaken to expose anomalous transactions within the Development Bank of the Philippines (DBP) were conducted “by the book,” the bank’s chairman said yesterday.

DBP chair Jose Nuñez said they followed the procedures of the bank in all investigations.

Nuñez explained that their investigations could not be called “overzealous” as their detractors claimed.

He added that they issued two show cause orders, instead of just one, to give all concerned the opportunity to defend themselves.

However, Nuñez said he would limit his responses as the board’s legal team is still collating defense on various allegations against them and the threat of former trade minister Roberto Ongpin to file a counter case.

Ongpin was implicated in a number of bank loans worth P660 million which was the core of the audit investigations.

Yesterday, Ongpin issued a statement refuting allegations and vowed to file counter suits.

That was the same reason the board chairman referred further queries to legal counsel Dada Ongkiko-Acorda, Nuñez said.

Meanwhile, sources said that deceased DBP lawyer Benjamin Pinpin was the one who wrote the affidavit that he also signed.

Pinpin, the DBP employee included in the audit investigation, committed suicide last week allegedly due to pressures of the investigation.

Although he was not a key witness to the alleged anomalous transaction and was merely collating documents as part of the legal process in bank transactions, Pinpin was one of 20 employees who received show cause orders issued by the DBP board.

His wife, Amy Pinpin, was quoted as saying that Benjamin was under pressure from the board and his peers.

Most of those who were issued a show cause order did not make and sign an affidavit alleging anomalies in the bank.

Sources also admitted that the morale of the senior management level went down as they refused to enter into new loan transactions for fear of doubt or scrutiny.

“They want to leave the premises as early as legally possible,” an official said.

“When Benjo took his life, little did he know that a Pandora’s box would be opened,” another DBP employee said.

President Aquino said if the board is “overzealous, we will rein them in.”

“But if it is doing its job of looking for anomalous transactions involving DBP employees, then that is necessary,” he said. 

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