Ombudsman urged to prioritize probe on DBP fund mess

MANILA, Philippines -  An anti-corruption watchdog has called on the Office of the Ombudsman to prioritize investigation into the alleged P660-million behest loans granted by the state-owned Development Bank of the Philippines (DBP) to businessman Roberto Ongpin in 2009.

The Volunteers Against Crime and Corruption (VACC) vowed to closely monitor developments in the case, which the group said would be another test of President Aquino’s commitment to stamp out corruption in government.

“The government must investigate thoroughly and prosecute this case immediately and successfully and, thus, demonstrate its resolve to the public that it’s hard bent on stamping on all forms of corruption,” VACC founding chair Dante Jimenez told reporters in the Department of Justice (DOJ) during his group’s 13th founding anniversary celebration last Friday.

Jimenez also asked the Ombudsman to create a special high-level panel that will dig “deep and hard” into the questionable deal.

“The culprits behind this scam must be prosecuted and punished hard to make an example out of them,” he said.

The VACC chairman also lauded Solicitor General Jose Anselmo Cadiz for his resolve to prosecute Ongpin, the former members of the DBP board and other bank officials linked to the dubious loan transaction.

Cadiz earlier said the government had a strong case to hold Ongpin and the other bank officials criminally liable for the alleged behest loan.

He had cited possible violation of the Banking Laws and the Anti-Graft and Corrupt Practices Act.

Cadiz, who was designated by President Aquino as lead counsel of DBP in this case, said government investigators would leave no stone unturned.

The chief government lawyer said that Delta Ventures, Ongpin’s firm, did not comply with the basic requirements mandated by banking laws and DBP rules.

“The real question is whether DBP officials violated banking laws and its own rules to engage in speculation using state funds when the

DBP’s thrust is medium and small industries and not to depend on the value of shares,” he said.

Cadiz said that available documentary evidence and testimonies of several personalities showed that the Aquino administration “has a strong case” against Ongpin, the trade minister during the Marcos regime.

Last Aug. 5, DBP filed criminal and administrative cases against its past board led by chairman Patricia Santo Tomas, president Reynaldo David, and Ongpin, in connection with the alleged P660-million behest loans to Delta Ventures Resources Inc. (DVRI), to finance Ongpin’s acquisition of Philex Mining shares.

Also sued for violation of Republic Act No. 3019, otherwise known as the Anti-Graft and Corrupt Practices Act, Civil Service Laws, RA No. 8791 or the General Banking Law of 2000, the Bangko Sentral ng Pilipinas (BSP) Rules and Regulations and the DBP’s internal rules were former DBP chief operating officer Edgardo Garcia and former directors Ramon Durano IV, Alexander Magno, Floro Oliveros, Joseph Pangilinan, Miguel Romero, Franklin Velarde and Renato Velasco.

The state-owned bank also charged for graft and violations of the Banking laws and DBP rules and regulations the following DBP officials: Armando Samia, Rolando Geronimo, Perla Soleta,

Benedicto Ernesto Bitonio, Jesus Guevara II, Benilda Tejada, Cresenciana Bundoc, Josephine Jaurigue, Ma. Teresita Tolentino, Arturo Baliton, Justice Lady Flores, Marissa Cayetano, Rodolfo Cerezo, Warren de Guzman, and Nelson Macatlang, and DVRI’s executive secretary Josephine Manalo and DVRI stockholder Ma. Lourdes Torres.

In their joint complaint affidavit, DBP chairman Jose Nuñez and president Francisco Del Rosario Jr. alleged that the past board extended two “behest” loans of P150 million and P510 million to Delta Ventures Resources despite the latter’s having only P625,000 in paid-up capital and despite its net loss of P98.76 million and retained earnings of negative P2.35 million.

“That the [second] P510-million loan applied for by this puny company was approved by the risk management committee, the executive credit committee, and the board all in one day makes it doubly suspicious,” the complaint said.

According to the Commission on Audit, the transaction deprived the bank of an opportunity trading gain of P412.4 million.