MANILA, Philippines -- Speaker Prospero Nograles? brother who has been accused of corruption over a multibillion-peso loan for a state-run lending facility broke his silence Friday and denied the allegation.
At a press conference, Jose Nograles, president of the Philippine Deposit Insurance Corp. (PDIC), claimed that he did not receive a single centavo for brokering a P5 billion loan for Quedan and Rural Guarantee Credit Corp (Quedancor).
The younger Nograles explained that the more than P100 million ?arrangers? fee? that was supposedly paid to him actually went to the Land Bank of the Philippines, the PCI- Equitable Bank, and the ONL, a management consulting firm responsible for creating the financial structure of the loan.
Jose Nograles was senior vice president and head treasury and investment banking of LBP that funded the P3 billion loan for Quedancor, while the remaining P2 billion was funded by the PCI-Equitable bank.
He left Landbank in 2007 and assumed his new post as PDIC president last January.
?Having said that all three of us were loan arrangers for this and the investment banking fees that were paid out were of course paid out to the institutions -- paid to Land Bank, PCI-Equitable and ONL. May pre-sharing arrangement kami [We have a pre-sharing arrangement] among the three of us, which we negotiated depending on the participation or the contribution of each particular group to the success of the transaction,? he said.
?These are all above board. This transaction when I was at the Landbank went to our normal credit process. All of the terms and conditions that were agreed on have been approved by the board of director,? he said.
The P100 million arrangers? fee, which he said was part of the industry's practice, represented two percent of the P5 billion loan of Quedancor.
Asked if he received a single cent from this transaction, the young Nograles said, ?No, no. Because this is part of my job. This is what I get paid for by Landbank to do.?
On opposition lawyer Harry Roque's claim that the arrangers' fee was unjustified since the transaction was between two estate entities, the young Nograles said it was aslo part of his job to raise revenues for the Landbank.
?There are other banks that do investment banking transactions also. They could have easily asked the other banks to make a proposal if they found our terms to be not acceptable to them di ba?? he pointed out.
He said he was willing to face the Senate to answer all allegations hurled at him.
?We can explain this. As I said, I said this transaction is above board. It was cleared to our normal credit process,? he stressed.
Senator Ana Consuelo ?Jamby? Madrigal, he said, might have just been ?misinformed? when she implicated him on the ?swine controversy? involving Quendancor's funds allegedly used during the 2004 elections.
?I regret that she might have been misinformed about how these things were,? he further said.