Beng tackles Banco Filipino bankruptcy issue in House PDF Print E-mail
Friday, 03 June 2011 16:56

House Deputy Speaker for Mindanao Beng Climaco has asked the Congressional Committee on bank and financial intermediary to intercede on behalf of the depositors and employees of Bangco Filipino which has been closed since March this year.

Climaco’s main concerns regarding the bank’s closure include how the depositors are going to be paid and how the employees are going to be taken care of in view of Bangko Filipino’s reported bankruptcy.

The lady solon, who is a member of the committee said existing laws and regulations in protecting depositors and financial institutions as well as rights of the people should be reviewed with urgency given the situation confronting Bangco Filipino.

It is recalled that the Monetary Board, through a resolution approved March 17, ordered the closure of Bangco Filipino and placed it under the receivership of state insurer PDIC after the bank failed to service almost P1 billion withdrawals and fund checks.

Reports indicate that the Monetary Board got wind of allegations that mismanagement due to reported “lavish spending and hefty legal expenses” by bank officials. Bangco Filipino officials however deny these reports and claimed that the closure order is illegal as the bnak is not insolvent.

The committee meeting, presided over by chairman Cong. Sergio Apostol resolved various issues affecting the bank’s state with the presence of officials and representatives from the Bangko Sentral ng Pilipinas, PDIC, Bangco Filipino and committee members. Among the issues straightened out were the following: Bangco Filipino depositors with P5,000 or less in bank accounts have already been paid; bank depositors with accounts of P5,000-10,000 will receive payment until middle of June and that some employees were temporarily absorbed by Bangco Filipino partner companies.

Climaco vowed to continue to follow through the developments on the status of the troubled bank specifically the plight of the depositors and the employees in the days to come.

Records show that the Bangco Filipino has a total of 177,652 depositors in its 62 branches nationwide. — Rham Joseph Cabasag