Harshness and Trust in Loans
(Editor's note: Trust and honesty are the best standards in banking, as noted by the author.)
MANILA, Philippines - The Tagalog phrase ginisa sa sariling mantika has a deeper meaning, connotation, and color than any of its translation in English, Spanish, French, German, etc., that Rizal tried hard to master since age 11. The phrase's origin is unknown, but it is definitely against propriety and other higher virtues anywhere in the world.
Violation of trust
The new Ombudsman this week will inquire if there's enough basis to apply this Tagalog line to former DBP officials as lenders of a loan of R660 M granted in record time - in eight hours, from 8 a.m. to 5 p.m. - to a borrower with the following reported credentials or conditions: 1) paid-up capital of R625,000 (yes, thousand), 2) net loss of R98.76 M (yes, million), and 3) retained earnings of negative R2.35 M as reported by DBP officials appointed after June 30, 2010.
The persons responsible for the huge loan are facing charges of violation of: 1) the anti-graft laws, 2) General Banking Act, and 3) the rules/regulations of Bangko Sentral and DBP.
One DBP lawyer killed himself and his friends at the legal department put the blame on the harshness of the new management led by the chief legal counsel who is herself facing the above charges along with the former officers and members of the board, and most senior officers of the bank still in the service.
Two counts of corruption
Most civil servants, age 40 and up, can be called veterans with an accredited service of 18 years, if they joined DBP at age 22. Officers employed in positions connected with the so-called grant of the behest loans face both administrative and criminal charges. Either way they can lose retirement benefits for their long service and get a possible jail term.
Veteran cafe analysts view the situation as bad for those facing anti-graft cases that carry a penalty of six years and one month to 15 years. Two counts of graft may fetch a jail term of 10 years per count or 20 years for two. Sayang ang service credit and benefits for the "rainy days" sana.
Banks pay their directors, managers, and employees from profit or interest on loans and depositors' hard-earned savings. …