NextGen Day

MANILA, Philippines — A senator from a political party wants a congressional investigation into the alleged illicit profiting of some Land Bank of the Philippines (LBP) employees who operate as “go-betweens” or “agents” in loan applications.

Rep. Rowena Nia Taduran of the ACT CIS party-list filed House Resolution No. 2543 on March 30 to conduct an inquiry, in aid of legislation, into this practice in which these agents guarantee a quick loan clearance in exchange for a 10% piece of the loan revenues.

The scale of the loan amounts involved, the involvement of a government-owned financial institution, and the potential effect on the public’s trust in the banking system, according to Taduran, make it necessary for the House to investigate this subject.

“Congress has a responsibility to protect the borrowing public as well as the broader banking system against nefarious bank workers,” she said.

President Alberto Ching of American Boulevard sought a PHP50 million initial loan, according to Taduran.

She claimed that despite the LBP insiders receiving their 10% cut, a considerable portion of the loan sum was not released to Ching.

“The borrower was given a variety of explanations and was persuaded to apply for another PHP50 million loan by the ‘agents.’ Nonetheless, the loan money was released late and in part “In the resolution, Taduran stated.

She said Ching’s company went into default on payments to suppliers and other creditors, resulting in the company’s liquidation and the loss of jobs for its employees.

Taduran addressed a letter to LBP management, requesting that they investigate Ching’s issue.

According to Taduran, the bank launched an internal investigation and fired the workers implicated, as well as filed criminal charges against them.

She did remark, however, that LBP did not give any compensation to American Boulevard for the “irreparable damage” it had suffered.

She also named 30 other debtors who were victims of the LBP insiders’ lending scheme, with loans ranging from PHP100 million to much more than that amount.

“Given the size of the loans, it’s quite unlikely that low-level LBP workers acted without the approval/cooperation of the ‘higher-ups,'” she stated.

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