Did the Davides get RBS loans?-A A +A
Friday, April 11, 2014
DID retired Supreme Court chief justice Hilario Davide Jr. and his wife, Virginia, obtain loans from the closed Rural Bank of Subangdaku Inc.? Or were their names merely used by a syndicate to benefit from fraudulent loans in the said bank?
I ask these questions because I saw the Davides' names in the voluminous documents submitted by the Philippine Deposits Insurance Corp. (PDIC) to the Department of Justice (DOJ) to support the filing of charges against two former top officers of the closed bank.
PDIC has filed charges before the DOJ against Lapu-Lapu City Mayor Paz Radaza, former president of the bank and member of its credit committee, and loan officer Julius Eullaran for violation of Section 21 (f) of Republic Act No. 3591 as amended and violation of Section 21(f) and (g) of RA 3591 as amended in relation to Bangko Sentral ng Pilipinas (BSP) circular No. 341 (series of 2004). These are in relation to the commission of irregularities, and/or acts that may be deemed as conducting business in an unsafe or unsound manner.
The complaints were signed by Manuel Tan, PDIC assistant vice president, and Ariston Aganon, legal officer of PDIC’s investigation department.
The BSP is conducting a parallel investigation on RBS's bankruptcy and, if evidence warrant, will file separate charges against the culprits.
The complaint said that from 2004 to 2008, the respondents, former officers of RBS, deliberately and in conspiracy with each other caused the creation of fictitious loans amounting to P2.6 billion. They simulated official receipts and made it appear that payments were being made in RBSI when no payment was in fact was being received. In turn, these payments would serve to provide the purported source of the fictitious loan proceeds.
“Afterwards, the respondents schemingly engineered fictitious loans using false credit information i.e, take names and unknown addresses and thereafter directing their subordinates to use the same in fabrication of bank loan document.”
Banks that declare bankruptcy are placed under PDIC's receivership and it's the agency that will pay the depositors (before P250,000 but it was increased to P500,000). There are 6,051 names listed as having obtained loans from RBS.
There is “Davide, Jun L,” whose address is “Vilpal.” He got a P472,947 loan last March 15, 2006, which was due on March 15, 2009. Another fictitious loan was that of “Perez, Virgie.” Justice Davide's wife is Virginia Perez or Virgie. Perez’s address is Lapu-Lapu City. She obtained a loan amounting to P441,918 on Jan. 15, 2008.
Sources said that upon learning that his and his wife's names were included in the list, Davide wrote DOJ Secretary Leila de Lima requesting her to expedite the review of the complaints and, if evidence warrant, file the case in court. In his letter, Davide said that he is the only “Jun Davide” in Cebu and denied borrowing money from the bank and, if there were any transactions bringing his name, he did not authorize it.
Based on the PDIC report, of the 6,051 who obtained loans, 97 percent were found fictitious and whose whereabouts and addresses could not be located. Most of the “borrowers” used nicknames. This only showed that the bank did not conduct a thorough screening and background check of the applicants.
When I applied for car loans on three separate occasions several years ago, the bank conducted a background investigation on me. Unsa-on pag-check nga minamao-mao man.
Luoy intawon ang mga depositors labi pa ang mga gagmay nga napurnada ang ilang
Radaza, on the other hand, denied having a role in these fraudulent loans and vowed to defend herself in the proper forum once she will be charged.
Published in the Sun.Star Cebu newspaper on April 12, 2014.