Banco Filipino officials sued anew for 'unsafe, unsound' business practice

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Top officials of the now closed Banco Filipino Savings Inc. are facing fresh charges for conducting business in an "unsafe or unsound" manner, according to the Philippine Deposit Insurance Corporation. (FILE PHOTO)

Metro Manila (CNN Philippines, December 4) — Top officials of the now closed Banco Filipino Savings Inc. are facing fresh charges for conducting business in an "unsafe or unsound" manner, according to the Philippine Deposit Insurance Corporation (PDIC).

In a statement Wednesday the PDIC said it has filed raps in the Justice Department against the bank's Chairman and President, Vice Chairman, four of its Directors, its Corporate Secretary, Executive Vice President and other high-ranking officers.

The bank was closed down and placed under the PDIC in 2011 after it encountered financial difficulty. It was then that the PDIC discovered losses amounting to ₱789.46 million that were paid for legal fees without any supporting documents.

One of the partner law firms that received ₱225.87 million was one of the bank's Directors, PDIC noted.

Conducting business in an unsafe manner or a violation of Republic Act No. 3591 constitutes to six to 12 years of imprisonment and a fine of not more than ₱10 million or both.

These latest raps come on top of three other complaints filed against the bank's former directors, officers and employees.

In August, former Foreign Affairs Secretary Perfecto Yasay was arrested as a former director of the savings bank for violating Republic Act No. 8791 or the New Central Bank Act. He was allegedly involved in a conspiracy to secure a ₱350-M loan for a real estate company in the early 2000s.

In 2011, the Bangko Sentral ng Pilipinas (BSP) filed a case against Yasay and nine other officers, namely, Chairman and President Teodoro O. Arcenas, Jr., Vice Chairman Albert C. Aguirre, Executive Vice President Maxy S. Abad, directors Orlando O. Samson, Adelaida C. Adduru-Bowman, Francisco A. Rivera and Ramon E. Montano, Executive Vice President Catherine Aguirre-Hernandez and BF SVP Roberta Afable for approving "self-serving"loans worth ₱2.192 billion.

After posting bail, Yasay had maintained that closing down Banco Filipino was illegal.