MANILA, Philppines - Ombudsman Conchita Carpio-Morales affirmed on Wednesday, January 9, an earlier resolution ordering the filing of two criminal cases against businessman Roberto V. Ongpin, two other officials of a company Ongpin owns, and 25 former and current officers of the Development Bank of the Philippines (DBP).

Carpio-Morales stood by her September 2012 resolution ordering the filing of the cases against the 28 individuals in connection with the granting of P660-million alleged behest loans to Ongpin's company, Delta Ventures Resources Inc. (DVRI).

The case before the Ombudsman stemmed from the complaint filed in August 2011 by DBP represented by its chairman, Jose Nuñez, and its president and chief executive officer, Francisco Del Rosario Jr., against the 28 respondents for violations of Sections 3(e), (g), (j) of RA 3019, RA 8791, and other banking regulations.

The Ombudsman found the respondents responsible in the granting of "behest" loans used by Ongpin to purchase DBP-owned shares in copper-gold miner Philex Mining Corp. in 2009.

In a September 25 resolution explaining the findings of her office's review, the Ombudsman said that:

• DBP extended two loan facilities in the amounts of P150 million and P510 million in April 2009 and November 2009, respectively, to DVRI, even though DVRI was undercapitalized;
• the values of the securities did not comply with the collateral-to-loan ratio prescribed by the central bank and DBP’s own credit policy memoranda;
• there are indications that corporate layering was resorted to; and
• the proceeds of the P510 million loan were used to purchase DBP-owned mining stocks, although the private company was not licensed by the Securities and Exchange Commission as a securities dealer, and with reported indicia of insider trading.

Carpio-Morales granted the motion for reconsideration filed by former DBP director Renato Velasco, who argued he became bank director months after the loans were granted.

However, the Ombudsman denied the motions for reconsideration filed by the other respondents, who include:

Former DBP board members:

• DBP’s ex-officers Patricia Sto. Tomas, former Chairman
• Alexander Magno, former Director
• Floro Oliveros, former Director
• Miguel Romero, former Director
• Franklin Velarde, former Director
• Renato Velasco former Director
• Joseph Donato Pangilinan, former Director

Former and current DBP officials:

• Edgardo Garcia, former Senior Executive Vice President (SEVP) & Chief Operating Officer
• Armando Samia, former SEVP & Head of Marketing Sector
• Rolando Geronimo, former SEVP
• Perla Soleta, former Senior Assistant Vice President (SAVP)
• Jesus Guevarra II, former SEVP & Marketing Head of the Brach Banking Sector (BBS)
• Crescencia Bundoc, former VP & Head of Regional Marketing Center-Metro Manila (RMC-MM)
• Arturo Baliton, BBS Manager for RMC-Western Luzon
• Nelson Macatlang, RMC-WL Chief Accounts Management specialist
• Marissa Cayetano, RMC-MM Assistant Manager

Private individuals:

• Ongpin, DVRI General Manager
• Josephine Manalo, DVRI President
• Ma. Lourdes Torres, treasurer of Goldenmedia Corporation

Ongpin, BSP word war

The Ombudsman's resolution came out amid a word war between Ongpin and the Bangko Sentral ng Pilipinas (BSP).

Ongpin slammed the BSP for deferring its confirmation of his election as chairman of Philippine Bank of Communications late last year. The central bank cited as reason for the delay the charges filed against Ongpin before the Ombudsman.

Ongpin also threatened to sue BSP Deputy Governor Nestor Espenilla for signing an Anti-Money Laundering Council (AMLC) petition asking the Court of Appeals to freeze his bank accounts.

Espenilla asked that the accounts be frozen pending investigation into the P660-million alleged behest DBP loans.

Ongpin said Espenilla gave contradicting statements about the loan deals -- prior to signing the AMLC resolution, he told a Senate probe the loans were "prudent and positive" for DBP. - Rappler.com