Ombudsman to Purisima, Tetangco: Respond to criminal complaint over Allied, PNB merger

By: Jaime Sinapit, InterAksyon.com
InterAksyon.com

The online news portal of TV5 MANILA - The Office of the Ombudsman has ordered the players involved in the merger of the Allied Bank and Philippine National Bank (PNB) to respond to the criminal complaint filed against them.

In a two-page order dated February 25, Assistant Ombudsman Marilou B. Ancheta-Mejica of the Preliminary Investigation Administration Adjudication and Monitoring Office II (PAMO II) ordered Finance Secretary Cesar V. Purisima and Bangko Sentral ng Pilipino (BSP) Governor Armando M. Tetangco Jr., and several other respondents to submit their counter-affidavit and those of their witnesses.

Tetangco and Purisima are chairman and member of the Monetary Board respectively. The other respondents are Alfredo C. Antonio, Ignacio R. Bunye, Peter B. Favila, Felipe M. Medalla, Armando L. Suratos, all members of the board; Teresita J. Herbosa, chairperson of the Securities and Exchange Commission (SEC); and Valentin A. Araneta, president of the Social Security System (SSS).

The complaint (OMB-C-C-13-0026) for alleged violation of Section 3(e) and (j) of Republic Act 3019 was filed on January 31, 2013 by stakeholders of the General Bank and Trust Company led by Rosa D. Caram.

Early in February, progressive partylists led by Bayan Muna Rep. Teddy Casino filed House Resolution 3035, directing the Committee on Banks and Financial Intermediaries to conduct an inquiry on the approval of the merger despite the opposition of the Presidential Commission on Good Government (PCGG) and pending litigation in court questioning the legality of Lucio Tan’s acquisition of Allied Bank.

On Feb. 9, the PNB and Allied Banking Corp. have reportedly finalized their planned merger, following an approval by the SEC, Philippine Deposit Insurance Corp. (PDIC), and BSP.

“After the merger, PNB will be the surviving entity with Allied Bank shares converted to PNB common shares. The merger will clearly pre-empt the eventual resolution and disposition of Civil Case no. 005 which is now pending with the Supreme Court,” the resolution said.

“In essence, the proposed merger will compromise the ability of the government to recover Allied Bank shares and will adversely affect its substantial right to due process. Civil Case no. 005, filed by the PCGG, asserts that Allied Banking Corp. is among the companies acquired by Tan through former president and dictator Ferdinand Marcos’ ill-gotten wealth and influence.

The complaint narrated the procedure of the approval of the merger, as well as the letters sent by the PCGG to oppose the merger application.

The complainants claimed that the BSP, the SEC, and the PDIC violated Section 3 (e and j) of Republic Act No. 3019 or the Anti-Graft and Corrupt Practices Act, which refers to the following:

“(e) Causing any undue injury to any party, including the Government, or giving any private party any unwarranted benefits, advantage or preference in the discharge of his official, administrative or judicial functions through manifest partiality, evident bad faith, or gross inexcusable negligence. This provision shall apply to officers and employees of offices or government corporations charged with the grant of licenses or permits or other concessions.
“(j) Knowingly approving or granting any license, permit, privilege or benefit in favor of any person not qualified for or not legally entitled to such license, permit, privilege or advantage, or of a mere representative or dummy of one who is not so qualified or entitled.”

The complaint also said the respondents violated Republic Act No. 6723, or the Code of Conduct and Ethical Standards for Public Officials and Employees, as well as Article XI, Section 1 of the Philippine Constitution, referring to public office as equivalent to public trust and Article 19 of the Civil Code, which states that “Every person must, in the exercise of his rights and in the performance of his duties, act with justice, give everyone his due, and observe honesty and good faith.”