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OSG wants 14 DBP execs in loan mess suspended

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Businessman Roberto Ongpin

The Office of the Solicitor General (OSG) on Monday asked the Office of the Ombudsman to issue a preventive suspension against 14 top officials of the Development Bank of the Philippines (DBP) in connection with the alleged P660 million behest loans that the state-owned bank extended to businessman Roberto Ongpin.

The OSG, representing the DBP, filed the 11-page motion seeking the suspension of the  DBP officials on Friday.

In a statement, Solicitor General Jose Anselmo Cadiz stressed the need to suspend the DBP officials to ensure they will not “prejudice the just, fair and independent disposition of the case filed against them.”

The DBP officials the OSG wants suspended are DBP director Franklin Velarde; chief operating officer Edgardo Garcia; marketing sector head Armando Samia; finance sector head Benedicto Bitonio; branch banking sector head Jesus Guevara II; chief legal counsel Benilda Tejada; banking sector marketing head Crescenciano Bundoc; credit review and policy supervision head Josephine Jaurigue; regional marketing center head Teresita Tolentino; branch banking manager Arturo Baliton; RMC Western Luzon Manager Marissa Cayetano; RMC Metro Manila Assistant Manager Rodolfo Cerezo; RMC Metro Manila Assistant Manager Warren de Guzman; and RMC Western Luzon chief accounts management specialist Nelson Macatlang.

Cadiz said Ombudsman Conchita Carpio Morales should immediately suspend the DBP officials to “prevent them from using their position to influence potential witnesses or tamper with records which may be vital in the prosecution of the case.”

The DBP officials are facing complaints of violation of the antigraft law and civil service law, and of the DBP and Bangko Sentral ng Pilipinas’ rules and regulations.

“The charges against the respondents clearly involve acts of manifest partiality, evident bad faith and gross inexcusable negligence which warrant their removal from service, ” the OSG said.

DBP refused to comment on  statement from the OSG, saying it ought to stay silent while the cases against its officials are being reviewed by the Ombudsman.

“The bank is not in a position at this point to comment on the matter because the complaint has already been filed with the Ombudsman. Let us allow the legal process to take its course,” DBP Vice President for Communications Leonora Fernandez told the Inquirer.

It’s unclear, however, why DBP which is a government financial institution is being represented by the OSG.

Under the law, the Office of the Government Corporate Counsel (OGCC) is the principal and statutory law office of  all government financial institutions, government-owned-and-controlled corporations (GOCC’s) and their subsidiaries.

But Cadiz explained that President Benigno Aquino III had mandated the OSG to pursue the DBP case.

On August 5, the DBP filed a case for graft and violation of banking laws against Ongpin, two other private individuals and 25 past and incumbent DBP officials with the Ombudsman.

It alleged that the officials had been partial to Ongpin and to Delta Ventures Resources Inc. by granting them undeserved loans in violation of banking rules and the DBP’s internal policies.

The DBP had granted P510 million and P150 million loans to DVRI, which Ongpin controls.

Cadiz said Ongpin used the loan to buy shares of stock in Philex Mining Corp. at P12.75 per share, which he later sold to Manuel V. Pangilinan’s Metro Pacific Group as part of a bloc at P21 per share.

But Ongpin had vehemently denied allegations that the transaction was highly irregular, claiming that DBP in fact made money from the interest of the loan which was repaid way ahead of its maturity.


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Tags: DBP , Graft and Corruption , Office of the Solicitor General , OSG , Roberto Ongpin


  • Anonymous

    Ongpin seemed to use political influence to obtain the loan which he would have probably been able to with the assistance of FG.  Even if the Bank made money, it could have made more money if it dealt directly with the real party.

    Ongpin et al should be prosecuted for the behest loan

    • Anonymous

      It will indeed need a whole syndicate within this government bank to process such a huge loan and at such blinding speed. That DBP made a tidy profit from this questionable loan is immaterial. The main issue here is the loan was granted to a small and largely unknown company under dubious and highly questionable circumstances… 

    • Anonymous

      Yan kasi ang expertise ni Ongpin, being one of the top officials of the Marcos era. BEHEST loans, di ba Benedicto et al?

  • Anonymous

    Good move…..CONGRATULATIONS OSG!  Yan ang nararapat gawin sa mga pinagsususpetsahang gumagawa ng katiwalian….lalo na sa gobierno, kasuhan kaagad.  Government SERVANTS should all be above suspicion.  Kahit konti lang, kasuhan kaagad para manumbalik ang tiwala ng taong-bayan sa mga naninilbihan at nanunungkulan sa pamahalaan ng bayan.

  • EVILCOUPLE

    Pasuspende agad, especially for senior officers, they can manipulate, destroy the evidence and even sabotage the operation of the bank.

  • http://pulse.yahoo.com/_L2CUVK7UBTUTKTGD35WSJHDCUE ernie

    may parte na naman si lolong arroyo cgurado sa kinita ni ongpin ng walang kahiraphirap. no wonder kailangan lumipad na naman si king croc patungong europe to consult his veterinarian daw …..

  • Anonymous

    There’s something very wrong with this picture. Save for a few higher management officials mentioned, like the CEO, these are the small fry who were just following orders. In fact, likely hindi naman kumita itong mga ‘to. Get the big fish, like the DBP Board. DBP is not like Customs na pati mga maliliit na empleyado corrupt – -it’s run by professionals. How can a small employee say “no” to the DBP Board.

    • http://www.facebook.com/profile.php?id=632883527 Fernando Veloso Jr

      Mag-basa at mag-isip ka nga, di po ba nakasuhan na ang previous board? so dapat iyong mga kasabawat naman ang kasuhan….

  • Anonymous

    When kaya iimbestigahan ang PCGG officials, past and present. Just like the cases of a certain Josef and Celso Samaniego. Both from PCGG and in a short span of time, nasabit kaagad sila sa mga scams and corruptions. PNoy and Malacanan, look into PCGG.

  • Eric Villegas

    ang sabi nga nuong dating CEO ng DBP, talagang malalim daw mag-isip si ongpin.
    ikaw na ang maging galamay nung diktador na si Marcos.

    sobrang lalim, biro mo, naisahan si MVP. Binili ng  12.75, tapos nai-flip sa 21 per share.

  • http://pulse.yahoo.com/_WYSEPM7BIAEMCNNASWOWQ5RTKY Ang Kampanero

    wag lang naman yung mga tenyente at sarhento ang parusahan, mas lalo na yung mga colonels at generals. hindi naman tutulak ang mga transactiones na yan kung hindi pinalarga mula sa taas

  • http://pulse.yahoo.com/_OHOD5EA75DBBUH53UKLRXRK764 Mang Teban

    Like domino tiles placed one after the other in singular file at precise distances, these dishonest billionaires shall fall one after the other in synchronized fashion. After Bobby Ongpin comes the next one and the rest of the gang will share same fate – truth shall prevail and, hopefully, our beloved country can already prosper economically under legitimate circumstances and without the evil designs of greed in business and governance.

    This is good for then we don’t have to wait in vain or look up for said models of economic progress like Singapore, Korea, or China. Our way is the most genuine way to success – not authoritarianism where the old adage of “absolute power corrupts, power corrupts absolutely” becomes its creed. Instead, we must be vigilant to the cause of justice. We must have faith in ourselves that we can be honest and willing to sacrifice for truth by exposing the misdeeds of the powerful and influential.

    Our county needs to be cleansed now and be rid of opportunistic few who use money to buy power and fame. I believe that times are a-changing and God is on our side. Slow to anger, God shows His mercy upon us by shedding light to our country being covered in darkness. I praise our Lord for He is good and merciful. He shall humble the greedy oppressors of our people. It is now the time for those who mourn to rejoice. May the rights of the victims from the behest loans be upheld by our courts and those wrongly judged be vindicated.

    • Anonymous

      i agree with with mang teban. the Bible in the book of Numbers if im not mistaken says, Be sure your sin will keep you out. in God’s own good time, more and more corrupt and dishonest opportunist will face judgment.  they may avoid man’s judgment but not with God. Let’s pray for our government officials that they will do with integrity and dedication what was mandated to them. God bless the Philippines

    • Rudy Maranca

      I salute you for coming out in the open to fight against the eventual decline and fall of our mother land. The Philippines many, many years ago was dubbed as the best in the Far East. Education and economic growth, and bright politicians were the envy of the neighboring countries. It is no longer like this. It is now noted for graft and corruption. Mang Teban, people may suffer untold hardships that they may rise together to not exercise anymore the right to vote. People are tired of electing candidate who in turn practice the art of graft and corruption the moment they are  already in office. The only savior to save our country is P-noy if he will not be tempted to follow the path of fellow politicians.

  • http://pulse.yahoo.com/_K2RI3LJVGNNED3XPMG7HVMIIO4 Herbert

    Kailangan talagang masuspend ang mga iyan at mapalitan, hindi kasi kikita ng kamag-anak Inc. at KKKT group kung hindi nila bata-bata ang mga middle man. The new era of corruption has just begun.

  • http://pulse.yahoo.com/_6KU4GZOUZYZABWJOWMDFEHMCYI Anton

    ANG PANGULO AT MGA SENADOR AY GIGIL NA GIGIL KAY GLORIA ATBP DAHIL SA KORUPSYON ….

     ANG HINDI NALALAMAN NG MADLANG BAYAN ,,,BARYA LANG ANG GOBYERNO MANGURAKOT  ,…..SA PRIVATE AT BUSINESS SECTOR AY ISA NA SIYANG NORMAL NA TRANSAKSYUN , KUNG WALA KANG IAABUT SA MGA NAMAMAHALA , WALA KA DING MAKUKUHA NA PROYEKTO , SANA MABANTAYN DIN ANG MGA BUSINESS SECTOR LALO NA ANG NAG CALL CENTER INDUSTRY , NA SA LAHAT NG ASPETO , ULTIMO KAPE , PAPEL , TSAA AT UPUAN AT LAMESA  NG CALL CENTER AY MAIBEBENTA KUNG MAY KAKILALA KA SA LOOB NG CALL CENTER NA ADMIN MANAGER , AT MAY PORSYENTO SILA SA BENTA ,.
    MAS GRABE NA SA PRIVATE AT BUSINESS SECTOR ANG KORUPSYON

    • Anonymous

      That’s the worry of the owners of the private enterprises. Kailangan pa bang paghimasukan ng gobyerno yung mga anomalya sa pagbenta ng mga appliances at refreshments sa call center? Ito ang barya-barya, hihigit pa ba ito sa NBN-ZTE, Fertilizer, Northrail, Pasalubong/pabaon at Euro generals, Helicopters ni bocha, Jueteng/bigote, Pidal, Amari/Expo Pilipino/tabako, etc., etc.?

    • http://pulse.yahoo.com/_WYX4ZTAV4BUGW2RIMT45CPYBGA Pio Gante

      tama ka na laganap din ang katiwalian sa pribadong sektor, patunay nyan ay ang pakikipag-sabwatan ng ilang mga negosyante sa mga tiwaling mga pinuno para makakuha ng proyekto at kontrata sa pamahalaan,

      ang pagdelihensya at pangungumisyon ay ginagawa rin ng mga namamahala sa mga pribadong tanggapan, isang halimbawa ay sa pagkuha ng janitorial,security, catering at iba pang mga essential services na kinakailangan nila, hindi maa-approve kung walang lagay sa pipirma ng kontrata, pero chicken feed lang yan kung ikumpara sa mga nangyayari sa pamahalaan

  • Anonymous

    Let’s pray for more dedicated and honest men in the government service. a changed heart with only God can do.

  • http://inquirer.net unokritiko

    You name other offices like GSIS,SSS and other GOCC’s, they are doing these kind of business!!!Instead of  the office were they are connected should be the one to get the percentage. what they do is it goes to their pockets!!!
    It is really a monkey business!!!!

  • Anonymous

    The Behest loan was approved by the DBP Board. 

    You can investigate how the loan got to the board but at the end of the tunnel, it is still the Board that approved it.  Meaning, at the end of the day, the Board is LIABLE.  But who packaged the Behest loan? Are they also liable?

    If FG tells the DBP officials to package the loan, there is a system where a loan that size has to be board approved for control purpose. If FG tells the board to approve the loan, who is FG that the board should obey FG? FG is the one who appointed them to the board and if they want to keep their appointments, they have to follow FG.  In this case, FG is not liable but clearly it is the board.

    But if because of this FG got a commission from the transaction either from DBP, unlikely because of the audit trail but from from his friend Ongpin, then FG should be guilty of plunder.

    Being proven to be  a behest loan, all those in line with the process of loan approval where the intention is to pass and approve a behest loan should also be charged with plunder.

    The administrative who were involved should not be part of the plunder or case of passing a behest loan unless they new it was illegal and benefited from the process moneytarily or from promotion or the like. Since the benefits may bit be large enough to be a plunder case, it still is a case against them.

  • http://pulse.yahoo.com/_JWHQQBHJHXFWVWH3N7TJR2QURU Anthony

    I would also like a P 500 Million loan from the DBP, and my neighbor wants the same easy and expeditious processing.  I can also register a holding company with the SEC.  Every Filipino would like the same opportunity to have such a credit line / loan on demand to take advantage of stock market undervaluations so we can also flip the shares and profit from it.  Unfortunately, we are only ordinary citizens in this country without power and connections.

  • Anonymous

    Unless FG signed something in the loan documents, I don’t see how OSG can connect this loan to the FG making it a behest loan.  Friendship with the FG is not a crime.  Also, behest loans do not get paid.



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