MANILA, Philippines (UPDATED) – President Benigno Aquino III on Wednesday expressed disappointment over the decision of judges handling cases involving pension fund Government Service Insurance System (GSIS) and Aguirre-led Banco Filipino Savings and Mortgage Bank.
During his speech at the signing of a memorandum of agreement to effect the increase in the compensation of judges and judiciary workers, the president cited how lower court judges have handled the two high profile cases.
He expressed his sentiments during an ad-libbed portion of his address to the judges associations and the Department of Budget and Management for the payment of the Special Allowance for the Judiciary (SAJ).
Arrest warrant vs. GSIS board
The president cited the case against current members of the GSIS board, most of whom were appointed by the Aquino administration in 2010.
"Meron hong judge diumano na nagpapakulong at nagpaaresto sa buong board of directors ng GSIS at nilagay pa daw po na hindi pwedeng piyansahan. Ang naalala ko po kasi may mga krimen na non-bailable nadamay po ito," he told the audience.
"Matanong ko lang po sa inyo, paano kaya ang kumpyansa sa atin kung bigla na lang 'yung Government Service Insurance System ay nawalan ng Board of Directors at hindi natin matugunan ang pangangailangan ng lahat ng miyembro ng pension na 'to kasama na po tayo diyan," Aquino said.
Last March 31, Judge Roberto Mislang of the Regional Trial Court in Pasig City issued an arrest warrant against all GSIS board members over a 21-year-old land settlement case.
Judge Mislang belongs to Branch 167 of the court. His rulings came weeks after the judge of Branch 71, also in the same lower court in Pasig City, was informed that GSIS and the complainant have already settled their land dispute.
GSIS paid the complainant, an 82-year old widow, after the Supreme Court ruled with finality in December 2010 that GSIS wrongfully foreclosed the widow's property in the 1970's.
Finance Secretary Cesar Purisima has expressed his support for the GSIS board members led by
Robert Vergara who was appointed in September 2010.
BSP vs Banco Filipino
President Aquino also cited the case of another judge who reportedly barred the Bangko Sentral ng Pilipinas (BSP) to use its regulatory functions over Banco Filipino.
"Dagdag ko pa po, meron pong reklamo ang Bangko Sentral, nabigyan sila ng injunction na hindi nila mabigyan ng regulatory or hindi nila ma-perform 'yung kanilang regulatory functions over Banco Filipino," he said.
"Pero since 2008, ang pagkakaintindi ko, reklamo ng BSP ay hindi ho sila pinahintulutan na pangasiwaan, ayon po sa batas, ang kilos ng Banco Filipino. Paano naman po ang ating banking system kung parati na lang pong pababayaan ang mali, bahala ang PDIC (state insurer) maghanap ng paraan bayaran 'yung mga nag-deposit dito?" Aquino said.
The Monetary Board, which is BSP's policy making body, ordered the closure of the troubled thrift bank on March 17, 2011. The monetary officials also placed the Aguirre-led bank under the receivership of the Philippine Deposit Insurance System (PDIC).
These orders came after Banco Filipino shuttered its branches since it failed to service withdrawals and its checks bounced for lack of funds.
Before the closure, Banco Filipino sued the monetary officials over a P25 bilion financial assistance, which the BSP attached conditions to. In 2010, Judge Joselito Villarosa of Makati City Regional Trial Court ruled in favor of Banco Filipino and directed the BSP to immediately release the financial assistance without delay.
After the March 2011 closure order -- the second for Banco Filipino -- the BSP and the bank filed criminal charges against each other.
BSP governor Amando Tetangco, Jr., who President Aquino recently reappointed for another 6-year term, was one of those included in the graft charges.
Banco Filipino's lawyers argued that the bank was not insolvent, while the BSP has said the bank was operating a "Ponzi" or a pyramid scheme, referring to the fraudulent practice of using new deposits to pay old ones.
President Aquino defended BSP's position: "Paano ho kung totoo na 'yung tinatawag na Ponzi scheme ang nangyari d'yan? Ang basic facts ho, double digit ang interest rates na pinamimigay nila, 'yung ibang miyembro ho ng industriya single-digit. Mas mataas ang pagkuha nila ng pondo, paano nila mababayaran 'yung interes nito?"
Impact of judges' decisions
He said judges’ decisions affect everyone.
He also asked the judiciary to help the executive department.
"So babalik po ako, lahat ng kilos po natin, hindi natin maituturing na kumbaga sa lupain ay isla-walang nadadamay. Lahat po dito, damay-damay tayo," Aquino said.
"Pero kung hindi naman po tayo magtutulungan, kung patuloy pa rin ho 'yung mga statistikang hindi maganda, anim na taon average time para ma-adjudicate 'yung kaso -- 14 percent conviction rate on the average, one percent pagdating sa drugs -- saan nga naman tayo pupulutin?” the president asked.
“Kayo pong kaharap ko ngayon, palagay ko'y magiging kasabay ko dito sa pagsasamantala ng pagkakataong tunay na baguhin ang ating lipunan," Aquino said. - with a report from Willard Cheng, ABS-CBN News