Senate probes allegedly anomalous loans under Arroyo gov’t

MANILA, Philippines — Senators grilled Friday government officials over the alleged anomalous transactions involving large-scale loans during the Arroyo administration.

The committees on accountability of public officers and investigations (Blue Ribbon) and Banks, Financial Institutions and Currencies are conducting the joint inquiry into the P660 million loan granted by the Development Bank of the Philippines to the company of former President Ferdinand Marcos’ trade secretary Roberto Ongpin.

They are also looking into the P510 Million loan granted to Ongpin which he used to purchase shares of Philex Mining and then sold these at a high price to business tycoon Manuel Pangilinan.

Present as witnesses and resource persons were Commission on Audit chairperson Ma. Garcia M. Pulido Tan, CoA Corporate Auditor Emerlita Quirante, Securities and Exchange Commission (SEC) chairperson Teresita Herbosa, Solicitor General Jose Anselmo I. Cadiz, Landbnk of the Philippines President and CEO Gilda Pico and representatives from the Banko Sentral ng Pilipinas and the Development Bank of the Philippines.

Senate President Juan Ponce-Enrile, Senators Teofisto Guingona III, Ferdinand Marcos Jr., Loren Legarda and Sergio Osmena III were present at the hearing.

Former DBP president Ricardo David who allegedly approved the “sweetheart” deals, was the first to be grilled.

Senators asked how the loan was approved since Ongpin was using a different company and why the DBP’s Philex shares were sold to that company using a loaned money.

David and Ongpin were both directors of Philex when the transactions were made.

Enrile asked David if he was working for the benefit of Ongpin when he approved the loan.

“No sir, I do not work for Mr. Ongpin’s benefit, I would like to put that on record,” David said.

David was also asked why Ongpin was using other companies to take the loan and purchase the shares and why he approved the loan despite the questionable circumstances.