PDIC files raps vs ex-bank officers over fictitious loans


Posted at Feb 26 2014 04:23 PM | Updated as of Feb 27 2014 12:23 AM

MANILA, Philippines – The Philippine Deposit Insurance Corporation (PDIC) has filed charges against former officers of the closed Rural Bank of Sebaste, Inc. (RB Sebaste) in Antique for the alleged creation of fictitious loans.

In its complaint filed on February 4, PDIC alleged that the bank’s former president Eugene Estrella and former vice president and general manager Norma Delgado directed and caused the creation of 2,988 fictitious loan accounts, worth around P120.1 million, between 1997 and 2007.

RB Sebaste had 3,071 total loan accounts amounting to P131.3 million, according to its records.

But when the PDIC sent demand letters to the 3,071 purported bank borrowers, only 2,060 were returned, while 111 of the supposed borrowers denied any loan transaction with RB Sebaste.

A former officer-in-charge and cashier of RB Sebaste's head office issued a sworn affidavit stating that both Estrella and Delgado gave instructions to their subordinates to create fictitious or "indirect" loans.

The affidavit also alleged that Delgado supplied the list of names used in the creation of the loans.

The complaint also said the fictitious loan accounts, comprising 97 percent of the bank's loan accounts, did not have credit folders, which indicates a deliberate failure to document loan releases and demonstrated that the loan accounts were bogus and nonexistent.

A credit folder contains the promissory note, real estate/chattel mortgage, appraisal report, credit investigation report, loan and discount release sheet, loan application, board resolution, and other related documents pertaining to the grant and release of the loan.

PDIC is the statutory receiver of the closed RB Sebaste.