2 PhilExim execs, 5 others sued after gov’t lost P4.2B for loan guarantee facility

Office of the Ombudsman. NOY MORCOSO/INQUIRER.net FILE PHOTO

MANILA, Philippines–Ombudsman Conchita Carpio-Morales has ordered the filing of a criminal case against officials of the Philippine Export and Foreign Loan Guarantee Corporation (PhilExim) formerly known as Trade Investment Development Corporation (TIDCORP) for the P4.2-billion loss suffered by the government for a loan guarantee facility in 2003 and 2004.

In a 42-page resolution made public Monday, ordered charged  before the Sandiganbayan were former TIDCORP Executive Vice-President Rolando Alonzo, Account Officer Teresita Cometa, World Grannary Inc. (WGI) representatives Alison Sy, Guillermo Sy, Derick Chester Sy, Renato Ang and Nena Ang for violation of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act.

Documents showed that on December 2003, TIDCORP approved the request of WGI for a guarantee facility worth P1.80 billion payable in 10 years subject to several loan conditions. In the implementation of the loan agreement, WGI received an extended bridge loan from another firm with TIDCORP as guarantor. Three years later, WGI failed to pay its first interest payment. Due to the default, TIDCORP as guarantor was constrained to pay WGI liabilities.

TIDCORP in 2012 paid the banks a total amount of P1.87 billion. Then, it has conducted a transaction audit that led to the discovery of the irregularity in the transaction.

The findings was then referred to the Office of the Government Corporate Counsel which recommended the filing of criminal cases.

Based on the Ombudsman’s investigation, Cometa and Alonzo were directly responsible for the implementation of credit policies, credit evaluation, credit approval, documentation, credit administration billing and collection process with respect to WGI account.

“It was the duty of Cometa and Alonzo to thoroughly evaluate and study the account of WGI and based on evidence, Cometa and Alonzo were the ones who supplied the TIDCORP Board with erroneous, fraudulent and incomplete information which were used as the basis for the Board’s approval,” Morales said in her resolution.

Meanwhile, WGI representatives were included in the charge sheet since “a close scrutiny of the circumstances of this case clearly indicates that both the private and public respondents were involved in the scheme violated the Anti-Graft and Corrupt Practices Act.”