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

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.

“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.

“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.

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

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