Suicide notes paper trail to DBP intrigues

The lawyer who killed himself in the middle of an investigation of questionable loans extended by the Development Bank of the Philippines (DBP) was buried Saturday, but he left suicide letters and crucial documents inviting further scrutiny of the government bank.

Benjamin Pinpin, 43, was laid to rest at Loyola Memorial Park in Parañaque City after a funeral Mass at the Trinity Chapel attended by his grieving family, friends and colleagues at DBP.

The bank’s chief legal counsel, Benilda Tejada, told the Philippine Daily Inquirer after the funeral that the soft-spoken Pinpin was “collateral damage” in the squabble at the bank.

Tejada said it was a big waste that Pinpin had to die, adding that it was “harassment” that killed him.

The letters of Pinpin, who hanged himself in a Las Piñas City hotel room on August 2, indicated profound anguish.

In the one addressed to his wife, Amelia, he wrote: “I made this biggest mistake of my life last week. I shouldn’t have submitted [the affidavit]. I should have followed my heart. My mind was confused. I don’t want to live with the thought that I turned my back [on] the people who trust me.

“By submitting that affidavit, I exposed myself to going beyond the truth.”

The “last week” he referred to was July 27, when he signed an affidavit detailing the steps he took to pave the way for P660-million loans from the bank to businessman Roberto V. Ongpin in May 2009.

Pinpin’s officemates told the Inquirer that he signed the affidavit “under duress.”

A copy of Pinpin’s affidavit—a photocopy of which was obtained by the Inquirer, along with photocopies of the suicide letters to his wife, son and mother—the words “no” and “not true” were scribbled on the margins, crossing out key accusations such as “I was instructed to prioritize the account.”

His other letters, in handwriting confirmed by his family to the police as authentic, detail the pressure purportedly exerted on him to implicate his superiors and former DBP officials.

“I made a lot of mistakes,” he wrote in a letter to his mother. “I was desperate, don’t know what to do, I was thinking of too many things. I lost all reason. I was scared, Ma. I was scared of losing everything: family, job, respect, freedom.”

He added: “I chose to sell out on people who trust me. That was not me. But the desperation brought out the worst [in] me. I regret it. But it is too late to correct things. Whichever way this goes, I’m going to be charged. I just made things worse.”

Pinpin expressed similar despair in the letter to his wife: “My mind was too confused. I lost my reason. I lost my legal mind. Desperation brought out the worst in me and I’m ashamed of it. I don’t want you to live with that shame. So I’m bringing it with me.”

He instructed his wife to turn over his case files to Tejada.

“Tell her I’m sorry. Tell her I appreciate what she has done for me,” he said. “[The papers] somewhere, I left some other instructions. It will all help somehow.”

Single-minded search

The Inquirer spoke with a number of senior DBP officials to assemble an account of what transpired during the last few months.

What emerged was a picture of the DBP board of directors single-mindedly searching for supposed irregular transactions undertaken allegedly committed by then DBP president Reynaldo David and Ongpin, who was a client of the bank.

The two men do not hide the fact that they are friends of Jose Miguel Arroyo, the husband of former President Gloria Macapagal-Arroyo.

Last February 7, the bank’s audit committee submitted a report to DBP chair Jose Nuñez Jr.—an associate of businessman and administration supporter Salvador “Buddy” Zamora—explaining the loans extended to Ongpin’s Delta Ventures Resources Inc. (DVRI).

Detailed contents of the audit report were published in a column in Business Mirror and in a column in Philippine Star within two weeks.

On May 20, “show cause” letters signed by Nuñez were delivered to 20 officers and staff, saying:

“Questions have been asked why [Ongpin-owned DVRI], a company that did not meet DBP’s credit standards and requirements, was granted such loans for a purpose that is alien to the bank’s developmental mandate. The unusual circumstances attending the grant of these loans have attracted media attention.

“Being one of the officers who participated in the evaluation, processing and favorable endorsement of the subject loans, you are requested to submit a sworn written explanation of your involvement in said transactions within five days from receipt of this letter.  Failure to do so shall be considered a waiver to submit your explanation.”

Five days later, Newsbreak magazine published a two-part report on the Philex deal.

Ongpin wrote the author to complain about not having been interviewed for the report where he was portrayed negatively, and asked that his letter explaining the transaction be published in full.

The letter has yet to be run to this day.

‘Truce’ called

A month later, another set of show cause letters were given to the same officers and staff requiring “an explanation in writing and under oath why no disciplinary action should be taken against you for the foregoing acts” within five days from receipt.

“Failure to do so would amount to a waiver of your right to submit your comments or explanation, and the administrative investigation shall proceed and be decided without your comments or explanation,” the letters said.

On June 29, DBP president and CEO Francisco del Rosario Jr. called for a “truce” between the board and management.

Bank sources said this was questioned by Nuñez and DBP directors Antonio Periquet, Blas Viterbo (a former lawyer of Transportation Secretary Mar Roxas) and Kevin Belmonte (whose family owns the Philippine Star).

Days later, the board resolved to remove Tejada as DBP chief legal counsel because of “loss of confidence.”

On August 2, Pinpin killed himself.

On that day, sources said, Nuñez convened an emergency board meeting where a PR practitioner was also present. The meeting ended shortly before 8 p.m.

By 9 p.m., the Philippine Star was already carrying a news item on its online edition, with Nuñez saying initial reports indicated that Pinpin’s death occurred “under unusual circumstances.”

Police investigators ruled his death a suicide.

Last Friday, Nuñez and Del Rosario filed graft charges against Ongpin, David and several DBP officers for the “behest” loans.

No influence

Tejada said Pinpin, who was among those who received a “show cause” letter, had no power to influence the questioned transactions.

She said Pinpin only worked to document the processes and to ensure that terms and conditions were met.

She wondered why he was tagged a “key player” in the investigation.

In a statement, Tejada described Pinpin as “professional” and “dedicated to his job.”

“He was a team player who carried out his functions efficiently with minimum supervision … He professionally dealt with clients and his counterparts from other departments of the bank with tact and courtesy, while mindful of his duty to protect the rights and interests of the bank,” Tejada said.

“He steadfastly adhered to ethical standards of his profession and occupation in discharging his duties as documentation lawyer,” she said.

Media leaks

Tejada also said the leaks to the media of the audit report had raised concerns from the DBP employees’ union.

Many DBP senior managers and even rank-and-file employees have complained about a “demoralizing” witch hunt within the bank.

Tejada said she was investigating the media “leakage” but was told by the board to stop the probe.

She said she had gone to the National Bureau of Investigation to ask that the documents found at the suicide scene be secured.

She also said certain people were trying to insinuate that there was foul play involved in Pinpin’s death but that the documents he left behind would provide insights to what was happening in DBP.

Good governance

In the end, Tejada said, the DBP as an institution was suffering from the actions of the Nuñez-led board.

“People are demoralized. They are afraid to sign documents because they may be given show cause letters,” she said.

Tejada said that before the new board took over, the bank had one of the banking system’s highest capital adequacy ratios (CAR), lowest nonperforming loans (NPL) ratio and a multitude of awards on good governance.

“Now, our CAR is going down, NPL is going down and income is going down,” Tejada said.

She said it would likely be a sad Christmas for DBP employees. With a report from Michelle V. Remo