Senate to probe DBP loan to Bobby Ongpin | Inquirer News

Senate to probe DBP loan to Bobby Ongpin

By: - Reporter / @KatyYam
/ 03:17 AM September 05, 2011

Senator Sergio Osmeña III on Sunday said the pending complaint for graft and violations of banking laws against businessman Roberto “Bobby” V. Ongpin and several others before the Office of the Ombudsman would not prevent his committee from investigating the P660-million alleged “behest” loan granted to the former trade minister by the Development Bank of the Philippines (DBP).

Osmeña, who chairs the Senate committee on banks, financial institutions and currencies, said he and blue ribbon panel chairman Senator Teofisto “TG” Guingona III had agreed to conduct a joint probe of the matter.

Ongpin and several former and current DBP officials of DBP have been implicated in the alleged questionable loan transaction.


Ongpin has denied any wrongdoing, claiming the loan was above board, fully collateralized and was fully paid for before its maturity. He also pointed out the DBP made a handsome profit from the transaction.


“We will still investigate. This is in aid of legislation. This is not for criminal prosecution. We need to look at possible amendments, not only to banking laws, but most especially to the charter of the DBP, the Land Bank and other government financial institutions,” Osmeña said in a telephone interview.

“As far as I know, TG and I will call hearings after all supporting documents we asked for are submitted to us,” he added.

Aside from possible violations of banking laws, the Senate committees will also inquire into possible insider trading and violation of the Securities Code because the loans Ongpin obtained were used to buy DBP’s 50 million shares in Philex Mining Corp. at P12.75 per share.

Ongpin sold these shares later together with the remaining 50 million Philex shares of DBP and others as a bloc to the group of Manuel V. Pangilinan who paid a premium for the shares to gain control of the mining firm.

At the time of the sale, Ongpin and then DBP president Rey David were both directors of Philex.

Osmeña said that while there was a resolution filed by Senator Panfilo Lacson seeking a legislative inquiry into the P660-million “behest” loan, they are still awaiting the submission of pertinent bank documents involving the loan transaction.


Lacson has filed Senate Resolution No. 553 calling for a probe of similar transactions with government banks and institutions during the Arroyo administration.

He cited the acquisition of a controlling interest by the government through DBP and the Land Bank of the Philippines in 2009 in the Metro Rail Transit Corp. (MRT) for $180 million, or roughly P7.5 billion.

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.

Lacson noted the involvement of Ongpin, who was also a director of Philex during the time of the questioned transactions, as well as Ongpin’s closeness to former first gentleman Jose Miguel Arroyo.

TAGS: Bobby Ongpin, DBP, Senate

© Copyright 1997-2024 | 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.