4 former water officials face graft raps for bank purchase | Inquirer News

4 former water officials face graft raps for bank purchase

The Department of Finance (DOF) has filed charges against four more former officials of the Local Water Utilities Administration (LWUA) allegedly involved in the illegal acquisition of a bank.

In a 36-page complaint filed in the Department of Justice, the DOF accused former LWUA trustees Eduardo A. Bangayan, Aurelio O. Puentevella and Enrique Senen G. Montilla III, and former acting administrator for finance Wilfredo M. Feleo of violating banking laws and committing graft.

In April, a similar complaint was filed against former representative and LWUA chair Prospero A. Pichay Jr. and current trustees Renato S. Velasco, Susana D. Vargas, Bonifacio Maria M. Peña and Daniel I. Landingin.


Both complaints relate to the “irregular” purchase of 445,337 shares of stock in Express Savings Bank Inc. (EXSBI), equivalent to a 60-percent stake in the Cabuyao, Laguna-based bank, for P80 million in 2008.


In a statement, Finance Secretary Cesar V. Purisima said the DOF still had to gather evidence against the second group of officials, to explain the delay in the filing of the second complaint.

The DOF said in its complaint that the respondents “did not first seek the required prior approval from the Monetary Board (MB) despite the clear reminders for them to do so” before they “passed and approved” the acquisition of EXSBI to form a “wholly owned subsidiary” called the Water Development Bank.

Following the acquisition, LWUA infused an additional P400 million into the bank as fresh capital and deposited P300 million as savings deposits in 2009.

In the second complaint, the DOF said Bangayan, Puentevella and Montilla upon the active recommendation of Feleo, “unanimously passed and approved” the purchase of EXSBI in a special board meeting held on May 19, 2009.

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

TAGS: Graft

© Copyright 1997-2024 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.