DBP employees file plunder complaint vs top execs

(UPDATED) MANILA, Philippines – A group of career officials of the Development Bank of the Philippines filed a plunder complaint against top executives of the government bank on Friday, March 4, over an alleged overpriced P292.9-million project.

The Association of DBP Career Officials (ADCO) is accusing 5 DBP officials led by president and CEO Gil Buenaventura, of irregularities and overpricing in the procurement of the DBP’s integrated core banking solution.

Others named in the complaint are Fritzie P. Tangkia-Fabricante, chief legal counsel; Dennis D. Decena, operations sector head; Anthony Robles, branch banking sector head; and Nilo Cruz, chief information officer.

In the complaint, ADCO said that on June 4, 2015, upon the recommendation of the 4 other respondents, Buenaventura entered into a contract with the joint venture of Kaisa Consulting Company and Polaris Consulting and Service Limited for the implementation of an integrated core banking solution for DBP.

ADCO was represented in the complaint by its president, Francis Romulo Badilla Jr,  Mario P. Pagaragan Jr, Debbie C. Anza, Felipe S. Roque  Jr. and Christian Joseph D. Presa.

In its complaint, ADCO cited the special condition in contract that DBP “shall terminate” the contract in case certain conditions arise, among them, “changes in law and/or National Government polices, which include the possible merger/consolidation of DBP with another entity.”

It said that “despite the full knowledge” of this particular provision and the congressional approval of the merger of the DBP with the Land Bank of the Philippines, the respondents still facilitated the contract, and the project.

President Benigno Aquino III approved the merger through Executive Order No. 198 dated February 4, 2016.

ADCO also cited a Commission on Audit report that, it said, “found out the procurement was overpriced and tainted with irregularities and violations of Government Procurement Law.”

Based on this, ADCO alleged that the payment issued to the Kaisa and Polaris joint venture was an “illegal” disbursement for which the respondents should be held criminally liable.

DBP executives named in the complaint are expected to issue an official statement on the allegations on Monday, March 7.

DBP exec: ‘Nuisance case’ full of inaccuracies

In a statement, a DBP executive named in the complaint said management took necessary steps to ensure integrity of the bidding for the integrated core banking solution.

Decena said in an e-mail correspondence with Rappler that DBP engaged the government-owned Philippine International Trade Corporation to conduct the bidding for a new core banking system.

The new system would make the bank more efficient and at par with private banks, he said.

“We took this measure to ensure bidding integrity and to get the lowest price,” said Decena as he clarified reports of overpricing and bid rigging alleged by ADCO.

He asked, “How can there be plunder when everything was coursed through an objective third party and even the Commission on Audit did not say there was rigging of bid nor overpricing?”

“Even the award to the winning bidder was not questioned,” he added.

Decena said the complainst is a “nuisance case filed by employees who face termination proceedings due to poor performance.”

In his report to the President in the 2014 annual DBP report, DBP president and CEO cited the integrated core banking solution as among the bank’s highlights that year.

Buenaventura said in his report that the implementation of the project is aligned with the expansion of DBP’s banking systems as it aims to “increase employee efficiency and effectiveness, reduce operational cost, improve customer service, position the Bank for growth, and improve risk and regulatory compliance management.” – with reports from Chrisee dela Paz/Rappler.com