Ex-DBP execs, Ongpin charged with graft over behest loans

MANILA, Philippines - The Office of the Ombudsman has ordered the filing of two graft cases against 22 former officials of the Development Bank of the Philippines (DBP) led by former chair Patricia Sto. Tomas in connection with the P660-million behest loans anomaly in 2009.

Former trade minister Roberto Ongpin and two other officials of private firms Delta Ventures Resources Inc. (DVRI) and Goldenmedia Corporation (GMC) were also indicted before the Sandiganbayan.

Ombudsman Conchita Carpio-Morales signed a review resolution on Sept. 25 recommending the first filing of graft against Sto. Tomas; former president and vice chairman Reynaldo David; former directors Alexander Magno, Floro Oliveros, Miguel Romero, Franklin Velarde, Renato Velasco and Joseph Donato Pangilinan; former senior executive vice president (SEVP) and CEO Edgardo Garcia; former SEVP and head of marketing sector Armando Samia; former SEVP Rolando Geronimo; former senior assistant vice president Perla Soleta; former SEVP Jesus Guevarra II; former VP & head of Regional Marketing Center (RMC)-Metro Manila Crescencia Bundoc; BBS manager for RMC-Western Luzon Arturo Baliton; RMC-WL Chief Accounts Management specialist Nelson Macatlang; and RMC-MM assistant manager Marissa Cayetano.

The two other private respondents in the cases were identified as DVRI president Josephine Manalo and GMC treasurer Ma. Lourdes Torres.

For the second graft case, the Ombudsman identified the respondents as Sto. Tomas, David, Magno, Oliveros, Romero, Velarde, Velasco, Garcia, Samia, Geronimo, Soleta, Guevarra, Bundoc, Baliton, Ongpin, Manalo, Torres along with Ramon Durano IV, former DBP director; Benedicto Ernesto Bitonio Jr., former EVP and head of Finance Sector; Teresita Tolentino, former AVP; Rodolfo Cerezo, RMC-MM assistant manager; and Warren de Guzman, RMC-MM assistant manager.

The two cases stemmed from the complaint filed in August 2011 by the DBP represented by its chairman, Jose Nuñez, and its president and chief executive officer, Francisco del Rosario Jr., against 28 individuals who allegedly participated in the grant of “behest” loans in the sum of P660 million under relaxed concessions used in the purchase of DBP-owned shares in Philex Mining Corp., all orchestrated in a span of less than a year.

The Ombudsman’s review resolution pointed out the majority of DVRI’s shares are registered in the name of Manalo and its paid-up capital amounts to only P625,000, while most of GMC’s equity are owned by Boerstar Corp. whose shares are, in turn, held in majority by GAME Equities, Inc.

The Ombudsman’s decision added Manalo and Torres are GMC’s president and treasurer, but Ongpin is the chairman and shareholder of GAME, and that in November and December 2009, Ongpin and David were directors of Philex. Ongpin was a former DBP director and is a known associate of then DBP president David.