Ping seeks probe on behest loans

MANILA, Philippines - Sen. Panfilo Lacson filed a resolution yesterday calling for a Senate inquiry into behest loans and similar sweetheart deals during the previous administration.

His resolution comes in the wake of the suicide of a lawyer from the Development Bank of the Philippines (DBP) who was allegedly pressured in connection with the ongoing investigations on behest loans.

Lacson also wants the Senate to look into “other similar bigger financial anomalies involving government banks and financial institutions,” which he sees as clearly in breach of banking laws and various anti-corruption laws.

He cited the acquisition of a controlling interest by the government (DBP and the Land Bank of the Philippines) in 2009 in the Metro Rail Transit Corp. (MRT) worth $180 million or roughly P7.5 billion; alleged failed investments in Lehman Brothers; and two others which he did not mention in his resolution.

Lacson expressed concern over the tragic death of DBP assistant legal counsel Benjamin Pinpin.

“Let’s find out (if there’s) basis (to the) allegation attorney Pinpin (was driven to commit suicide). But the meat of the investigation is focused on the behest loans not only P660 million for Philex shares but also MRT Corp.’s $180 million. Here do you see one with $2 million paid-up capital that’s able to get a loan of $180 million?” the senator said.

Lacson cited a P50-million loan used by Delta Ventures Resource Inc. (DVRI) to buy shares of Philex Mining Co. that DBP then owned at P11 per share.

Three weeks later the same shares were sold by DVRI at P21 per share to a third party.

Lacson noted the involvement of businessman Roberto Ongpin, who was also a director of Philex Mining during the time of the questioned transactions, as well as Ongpin’s closeness with former first gentleman Jose Miguel Arroyo.

“The DBP Charter contains provisions on confidentiality that control disclosure of information to third persons on financial transactions and, hence, creates a situation that allows the occurrence of these anomalous transactions to happen under a cloak of secrecy which constrains any investigation on these anomalies because it severely limits the right of the public to know and to hold public officials accountable,” Lacson said in Resolution 553.

He said there is a need to strengthen and stabilize the banking industry and government financial institutions amid the alleged behest loans and sweetheart deals.

Lacson did not discount the possibility that Arroyo had a hand in the anomalous transactions.

“When we talk of Ashmore, there were talks before that if Ashmore is involved, the man behind is FG (first gentleman),” he said, adding the loan transactions were, to say the least, “questionable or anomalous.”

Reports said Ongpin is a local partner and representative of the British banking giant Ashmore, with over $50 billion in assets under management globally.

Ongpin had denied allegations of being a front for his friend Arroyo and challenged critics to present evidence.