MANILA, Philippinesâ€”The Philippine Deposit Insurance Corp. has filed a syndicated estafa case against officials of a closed rural bank in Cavite for allegedly stealing P748 million worth of deposits.
In a statement, PDIC said the officials of the GMA Rural Bank in Cavite, which was ordered closed by the central bank in February 2011, stole the funds by making it appear that these were loans disbursed to corporate borrowers. The borrowers were eventually found to be companies owned by the bank officials themselves.
Banking laws prohibit banks from excessive lending to companies owned by stockholders and officers of theÂ bank.
The PDIC said the Department of Justice, to which the case was filed, has started its preliminary investigation on the case.
â€œPDIC continues to pursue cases against errant bank owners, officers and employees in order to strengthen the deposit insurance coverage system, maintain faith and confidence in the countryâ€™s banking system, and protect it from illegal schemes and machinations,â€ PDIC said in a statement.
The Bangko Sentral ng Pilipinas closed GMA Rural Bank and placed it under the receivership of PDIC in February 2011 on alleged unsafe and unsound banking practices.
PDIC said it has paid P532.7 million worth of deposit insurance for the closure of the GMA Rural Bank.
Officials of GMA Rural Bank were the following: president Banlee C. Choa, director Ma. Corazon OT. Choa, and directors and stockholders Cherry Lyn C. Madarang, Carson T. Choa, Carter T. Choa, Carvin T. Choa, Carlo T. Choa; and Celine T. Choa.
So far, PDIC has filed a total of 83 cases of estafa and unsafe and unsound banking practices against owners and officials of several banks that have been ordered closed by the central bank.
Of the number, 35 cases have already been decided on by DOJ in favor of PDIC and have been transmitted to various courts for trial.
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