MANILA, Philippines – Two former officers of a rural bank in Davao del Sur have been sentenced to one-year imprisonment and ordered to pay fines for submitting false reports to the Bangko Sentral ng Pilipinas (BSP) in relation to a loan.
BSP said Francisca Labajo and Judith Manayon of Rural Bank of Matanao Inc. (RMBI) were found guilty by the Digos, Davao del Sur Regional Trial Court Branch 18 for violating Section 36 of Republic Act No. 8791 also known as The General Banking Act of 2000 in relation to Section 36 of RA No. 7653 or the New Central Bank Act.
In the court’s decision, Labajo and Manayon were found guilty, beyond reasonable doubt, of conspiring together to “willfully, unlawfully and criminally fail to report or transmit to appropriate supervising and examining department of the BSP the loan granted by the bank” to a stockholder of RMBI.
The loan was considered a Directors, Officers, Stockholders and their Related Interests (DOSRI) loan, which should be included in the bank’s report.
DOSRI loans are subject to BSP regulations and must comply with BSP reporting requirements.
BSP added that the terms of the DOSRI loan should not be less favorable to the bank than those offered to others.