Ex-DFA chief Yasay arrested over P350-M bank loan case
MANILA, Philippines (3rd UPDATE) – Former Department of Foreign Affairs (DFA) secretary Perfecto Yasay Jr was arrested by Manila Police District (MPD) cops on Thursday afternoon, August 22.
According to a police report, Yasay was ordered arrested on March 8 by Manila Regional Trial Court Branch 8 for "several violations" of the New Central Bank Act in relation to a case filed against him by the Bangko Sentral ng Pilipinas (BSP).
Police said that Yasay, along with 5 "associates," were accused of "conspiring and aiding each other" in securing a P350-million loan from the shuttered Banco Filipino Savings and Mortgage Bank while they were officers from 2001 to 2009.
The loan, police said, was accommodated for a certain company called Tierrasud Incorporated, which is owned by Tropical Land Corporation.
"When the loan was granted, all accused failed to report such loan accommodation to the supervision of BSP, and despite of report of examination addressed to all accused instructing them to rectify such violation, failed to do the same," the report added.
Where the complaint came from: The BSP filed the charges against Yasay and 9 other Banco Filipino officials on April 4, 2011. Yasay was then director of Banco Filipino. (READ: Criminal charges filed by Central Bank still haunt Yasay)
The BSP said Yasay and the other Banco Filipino officials "repeatedly violated several laws" for the following:
- Willful refusal to stop the conduct of unsafe, hazardous, and unsound banking practices
- Falsification and issuance of false statements to hide the true financial condition of the bank
- Willful refusal to file audited financial statements
- Willful refusal to report DOSRI (directors, officers, stockholders, and other related interest) loans
- Twenty-six counts of willful refusal to comply with numerous banking laws and BSP directives
The BSP pointed out that Banco Filipino "engaged in hazardous lending and lax collection policies and practices."
Yasay's stand: In a Facebook post, Yasay denied the allegations, explaining that the transaction occurred from 2003 to 2006, but he said he joined the bank only in 2009.
The former foreign secretary even took a selfie with a detention cell where he was expected to stay.
"Behind me looks like my bedroom tonight," he said in the caption.
He is not posting bail.
"I will question this abuse of process and travesty of justice," Yasay said in the same post.
Until then, Yasay is set to be detained inside the Manila Police District headquarters. – Rappler.com