‘POSLAI money woes stem from overspending’

The Manila’s Finest Retirees Association Inc. (MFRAI) said yesterday that the current financial woes of the Police Savings and Loan Association Inc. (POSLAI) can be traced to the uncontrolled spending of its officials since 1999.

MFRAI president retired Col. Felicisimo Lazaro issued the clarification following reports circulated by POSLAI officials that massive withdrawals leading to the bank’s financial crisis precipitated the airing of complaints by the MFRAI.

According to Lazaro, there were already numerous complaints from active policemen since 1999 against POSLAI for failure to pay even small withdrawals of deposits. Lazaro said the MFRAI only came into the picture last December when he took the cudgels for the beleaguered retirees who are demanding for the payment of their matured and terminated time deposits and the corresponding interests despite written and verbal demands.

The MFRAI president has in possession several copies of POSLAI expenses in 1998 and 1999 when the quasi-bank’s financial problems reportedly started. Records showed that from Oct. 1998 to June 15, 1999, one bank official incurred a total personal expenses of P286,914.54, of which a total of P29,000 was spent exclusively for media representation. In the same period, P22,692.50 was incurred for cellular phone bills, the amount of which according to Lazaro, is enough to pay three lowly POSLAI employees. Another official incurred P319, 886 personal expenses in just five months.

Lazaro said all these huge expenses which are charged to POSLAI’s account have the knowledge and approval of POSLAI president and chairman retired Col. Vicente Palmon. "You can just imagine the lavish lifestyle of these persons close to Palmon which I believe has been going on before the MFRAI exposed POSLAI’s anomalies."

Meanwhile, the MFRAI assailed Palmon for "continuing and performing the function of chairman and president of the bank despite a restraining order from the court."

The MFRAI obtained a copy of the Supreme Court’s ruling, rendered final and executory on March 12, 1998, affirming the decision of the Court of Appeals restraining Palmon from performing his duties.

A case against Palmon was filed on June 7, 1995 by former officers of POSLAI, then the Manila Police Department Savings and Loan Association, for recovery of a sum of money and damages, with prayer for the issuance of a temporary restraining order resulting from an "anomalous" loan worth P1.3 million entered by Palmon with the Metrobank branch in Ermita.

Lazaro said Palmon has committed a grave violation of the law for continuing to discharge the function as president of POSLAI despite the Supreme Court’s decision.