In his letter to NBI Director Reynaldo Wycoco, MFRAI president retired Col. Felicisimo Lazaro complained that the police retirees were duped into putting their retirement money in time deposits with interest rates ranging from 18 to 22 percent per annum and guaranteed to be withdrawable upon maturity.
Lazaro further said that since the middle part of last year, POSLAI president and chairman of the board retired Col. Vicente Palmon ceased to pay the assured quarterly interests nor allow withdrawals even of matured time deposits, which, according to Lazaro constitutes estafa.
Lazaro asked Wycoco to act immediately on the retirees’ complaints, "considering that most of the victims are already old, sickly and in need of their hard-earned retirement pay to sustain them."
Meanwhile, the Bangko Sentral ng Pilipinas (BSP) had assigned resident examiners to monitor the operations and financial assets of POSLAI following MFRAI’s allegations that the quasi bank is on the brink of bankruptcy. Candon Guerrero, BSP director for thrift banks and non-bank financial institutions, assured the retirees members of the BSP’s assistance to recover their money.
Initially, the BSP had assigned resident examiners to monitor the operations and precarious liquidity of POSLAI and its corrective measures on the exceptions noted during the last examination. The resident examiners started their duty on Jan. 9.
A memorandum of agreement was also executed between the BSP and POSLAI to adopt a rehabilitation program to resolve the financial crisis within 30 days.
At the same time, the BSP clarified that under Republic Act 7653 it is prohibited from revealing in any manner, except under order of the court, the Congress or any government agency authorized by law, information relating to the condition of any banking institution.
The clarification was made after the MFRAI alleged that the BSP’s department of thrift banks and non-bank financial institutions is withholding information on the financial status of POSLAI. – Nestor Etolle