Failed banks: The Legacy group's ugly legacy

SSince that Iraqi tv news reporter threw his shoes at then US Pres. George W. Bush during his last official visit to Iraq, it seems that this has started to become a trend against unpopular heads of state. The latest incident was Chinese Premier Wen Jiabao when he spoke before the University of England in Cambridge. A 27-year-old man threw his shoe shouting, “How can you listen to the lies he’s telling? You are not challenging him.”

Of course security personnel immediately pounced on the protester and carted him out of the building. Now whether this would hurt Sino-UK ties, we don’t know. We can only second guess that the protester was referring to China’s strong-arm handling of the protesters in Tibet, as UK has been one of Tibet’s closest allies. What kind of charge will the United Kingdom file against the protester?

What about the Philippines? Will something like this happen to the unpopular Pres. Gloria Macapagal Arroyo? That remains to be seen. But surely whenever the President would appear for speaking engagements, the Presidential Security Group might find ways to remove everyone’s shoes. Or perhaps, they might impose a no-shoe policy within a safe throwing distance from the President? For sure, some Congressman must now be preparing to enact laws to criminalize the act of throwing a shoe at someone.

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I’m glad that the Senate hearing on the ill-fated Legacy Group has now started to reveal certain truths as to why this has happened. First target on the Senator’s list is Fe Barin, Chair of the Securities and Exchange Commission (SEC) for sleeping on the job. Here in Cebu, we have always wondered how the salesmen of the Legacy Group would coax people to invest in this company on a “double-your-money-scheme”? I’m sure that the SEC knew that this was happening, but took a nonchalant stance on this.

The Bangko Sentral ng Pilipinas (BSP) also blames the Regional Trial Courts (RTC) for blocking their examiners from acting on the results that they found about the failed rural banks under the Legacy Group. I have always said that all that the BSP needed to do was send out a “white paper” to the media that this was happening and the media would have a field day in exposing the Legacy Group for using the Courts of Law to stop the BSP examiners from doing their job. But they too slept on the job!

That is a fundamental problem with our current Judiciary. Our courts only helped the bank owners instead of helping the thousands of poor depositors. More often than not, government agencies or regulators side with the people or companies whom they regulate. We see this in the Land Transportation Regulatory and Franchising Board (LTFRB) where too often, they side with the bus operators, jeepney or taxi owners instead of helping the commuters get a decent ride for the right fares.

We’ve also said this before that many Judges in our courts have allowed themselves to be used by unscrupulous people in the pursuit of their nefarious activities. The same is true when it comes to our fundamental right to Free Speech, wherein people who do not want the media to expose their shenanigans often go to court to file libel cases against the media. In turn, thanks to that “subjudice rule” media is effectively silenced. Since it takes almost forever to decide on cases, this fundamental right of free expression is denied the media, thanks to our courts. Where’s Justice there, huh?

BSP is no exception. As the Philippine Star editorial pointed out yesterday, “As early as 2007, BSP officials said, the Legacy Group was already “severely undercapitalized.” Timely action by the BSP and the Monetary Board would have saved depositors and policy plan holders. Now all that everyone will get is a refund of no more than P250,000 each—the amount covered by the deposit insurance.” Now if you were following the Senate investigation on the Legacy Group, House Speaker Prospero Nograles apparently “invested” P18 million as admitted by Legacy Group owner Mr. Celso de los Angeles.

So the rumors were true that a high-government official tried to “intercede” to the BSP for and in behalf of the Legacy Group. The name of Speaker Nograles was prominent in those rumors, which has now turned to fact. But the fellow, who did all of this, Mr. Celso de los Angeles, blames everyone, including the media why the Legacy Group collapsed. In fairness, the media only started its report on the Legacy Group when if collapsed. Mr. de los Angeles should start looking at the mirror and blame himself for the mess he created and the ugly legacy that his Legacy Group has given to this nation.