Sen. Lacson flummoxed by company’s ability to get million dollar loans from DBP, LB | Inquirer News

Sen. Lacson flummoxed by company’s ability to get million dollar loans from DBP, LB

Wants Senate probe into possible financial mischief by Arroyo gov’t
By: - Reporter / @MAgerINQ
/ 05:12 PM August 15, 2011

MANILA, Philippines – Senator Panfilo “Ping” Lacson questioned on Monday the $180 million loan that the Development Bank of the Philippines (DBP) and the Land Bank of the Philippines (LBP) allegedly gave to a single company.

Lacson said Global Air Services Ltd., which only had a paid up capital of $2.0 paid up capital, managed to get a $180 million loan from the DBP, and another $180 million from the LBP.

Lacson said the authorized capital of the Land Bank was $50,000.

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“Global Air Services Ltd. (GAS) acquired a US$90M loan from DBP and another US$90M from LBP for the purpose of acquiring the “economic interest” in the MRT Corp., equity rental payments of Metro Rail Transit Corp,” he said.

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“At the time, GAS had a net loss of $403,509 versus an asset of US$5,364, and a liability of US$408,871 with a paid up capital of US$2.00. Yes, 2 US dollars,” he emphasized.

Lacson said this, and other questionable loans, would be the subject of a Senate inquiry after he filed a resolution calling for an inquiry into alleged anomalous large scale financial transactions involving behest loans, and similar sweetheart deals conducted during the past administration.

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The Senate probe was prompted by the circumstances surrounding the death of DBP assistant legal counsel Benjamin Pinpin.

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TAGS: banks, behest loans, Capital, DBP, Lacson, Land bank, loans, Senate

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