Cavite bank execs charged with violations of DOSRI rules

10/22/2009

Monetary authorities have filed criminal charges against the officers and directors of the defunct Rural Bank of Silang Inc. (RBSI), based in Cavite, for diverting the bank funds to their private kitty in terms of loans in direct violation of the prevailing rules governing bank lendings to directors, officers, shareholders and related interests (DOSRI).

In its four-page letter, the Bangko Sentral ng Pilipinas Office of Special Investigation (BSP-OSI) asked the Department of Justice to prosecute, and issue hold departure orders against, Clarito Poblete and Bessie Ramos of RBSI, both shareholders and directors of RBSI.

The letter was sent to Justice Secretary Agnes Devanadera and Assistant Chief State Prosecutor Miguel Gudio.

The Monetary Board has already prohibited RBSI from doing business since April 2008, placed it under the receivership of the Philippine Deposit Insurance Corp., and directed the BSP-OSI to take proper legal action against he bank’s officers and directors.

BSP investigators discovered that RBSI had extended from 2000 to 2003 some questionable loans that could total to P7 million in all to its directors,officers and their relatives, including Poblete and Ramos.

The largest of these loans was a P2.5 million granted in February 2003 to Rene Ramos, the husband of Bessie Ramos.

RBSI director/stockholder Clarito Poblete also availed himself of bank loans ranging from P90,000 to P1 million. His daughters Lourded Emilia Poblete and Maria Socorro Poblete also availed themselves of similar loans. Also, Richard Ramos, son of Bessie Ramos, was able to borrow from the bank.

The BSP said that since Clarito Poblete was RBSI director and stockholder, his loan accounts were covered by the Manual of Regulations for Banks (MORB), which stipulates rules on DOSRI.

The BSP-OSI also found out that RBSI extended yet another loan amounting to P500,000 to one Crisostomo Belardo, who presented as collateral a property that the Poblete family owned. The BSP said it considered this loan as a direct borrowing by Poblete.

Under the BSP’s MORB, the grant of the loans classified as direct borrowings by bank directors and stockholders must be approved in writing by the bank’s board of directors and that the board approval should be entered upon the records of the bank; and that a copy of the written approval by the board should be submitted to the appropriate examining department of the BSP.

“(V)erification from PDIC disclosed that RBSI had no record of the board approval of (the) loans. Further inquiry from the Supervision Examination Department revealed that RBSI did not transmit any copy of written approval by the board approval of the loans to BSP,” BSP-OSI acting Deputy Director Marie Sally Quirino said. Benjamin B. Pulta

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