Antique bank officials charged for fake loans

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Friday, February 28, 2014


TWO former officials of closed Rural Bank of Sebaste in Antique were charged before the Department of Justice (DOJ) in early February for directing the creation of nearly 3,000 fictitious loans over a 10-year period.

In a statement, complainant Philippine Deposit Insurance Corporation (PDIC) said Eugene Estrella (former RB Sebaste president) and Norma Delgado (ex-vice president/general manager) were responsible for the 2,988 questionable loans
worth P120.1 million.

The loans were made between 1997 and 2007.

RB Sebaste records showed it had 3,071 total loan accounts amounting to P131.3 million.

The PDIC sent demand letters to the 3,071 purported bank borrowers but 2,060 of those letters sent were returned while 111 of the supposed borrowers denied any loan transaction with RB Sebaste.

A cashier at RB Sebaste's head office stated in a sworn affidavit that Estrella and Delgado ordered employees to create fictitious loans, which comprise 97 percent of the bank’s loan accounts.

Delgado allegedly supplied the list of names used in the illegal activity.

The loans also do not have credit folders, which contain the promissory note, real estate/chattel mortgage, appraisal report, credit investigation report, loan and discount release sheet, loan application, board resolution, and other related documents pertaining to the grant and release of the loan.

"The absence of credit folders indicated deliberate failure to document such loan releases and demonstrated that the loan accounts were bogus and nonexistent," the PDIC said. (Sunnex)

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