DBP chair charged with graft, coercion

MANILA, Philippines - Complaints for graft, grave coercion and violation of the code of conduct and ethical standards for public officials and employees were filed against Development Bank of the Philippines (DBP) chairman Jose Nuñez before the Office of the Ombudsman yesterday.

Nuñez is also accused of forcing DBP officials to concoct evidence against businessman and former trade minister Roberto Ongpin in a so-called “behest loans” controversy.

In a 21-page affidavit, DBP senior executive vice president and chief operating officer Edgardo Garcia, said Nuñez was motivated by his “obsession to manufacture” evidence against Ongpin and former DBP president Reynaldo David.

Garcia also blamed Nuñez for the suicide of DBP lawyer Benjamin Pinpin, who was allegedly forced to admit some issues in an affidavit.

Nuñez, in a statement, denied the allegations and slammed Garcia’s “clear attempt to muddle the issue.”

“Why file the case only now? I wonder why an official listed by the Commission on Audit as being among the elite list of highest paid officials – P12.7 million in 2009 – could have failed to assert his right against coercion early enough,” he said.

 The complaint also accused former DBP officials of allegedly granting P660-million behest loans to Ongpin’s firm, Delta Ventures Resources, Inc. (DVRI), in 2009.

The grant of loans allegedly violated banking laws and the DBP’s rules based on how a Commission on Audit (COA) report which showed that the bank was deprived of an opportunity trading gain of P412.4 million.

Garcia also claimed that Nuñez’s fixation to manufacture evidence against Ongpin by employing “unlawful coercions, threats, intimidation and pressures” against witnesses during the investigation of the behest loan case, led to Pinpin’s suicide on Aug. 2.

The government meanwhile defended its order to declassify banking information in connection with to the alleged behest loans.

Solicitor General Joel Cadiz said the Palace’s order to declassify the transaction records of DBP and DVRI is part of the government’s program of transparency in prosecution of important cases.

He also denied the allegation of Ongpin that he is being persecuted by the Aquino administration.

“This is not persecution and we are not engaged in witch-hunting. We are only holding him (Ongpin) accountable for his misdeeds. Let it be tried openly,” Cadiz said yesterday in an interview with journalists at the Department of Justice.

“Why not just answer the allegations hurled against him. If they have nothing to hide, then why attack the President? Why make a fuss about it? If they have nothing to fear, they should have welcomed it (declassification),” he said.

 “If the documents will not show anything, why be afraid. If he (Ongpin) has done nothing wrong he should welcome the documents. Why be afraid if it will exonerate him?” he added.

Malacañang ordered the declassification of the banking information relevant to the loan last Sept. 11. The order also covered details of individual accounts or specific banking transactions of the DBP on Global Air Services, Inc./Metro Rail Transit Corp., installment sale of the shares of the Manila Electric Co. and investments in Lehman Brothers Holdings Inc. – Michael Punongbayan, Edu Punay