NEWS/PRESS RELEASE
PR-174-19
Date of Release: November 21, 2019
FOR IMMEDIATE RELEASE

The Philippine Deposit Insurance Corporation (PDIC) is set to file criminal charges against Directors, Corporate Secretary, officers and employees of the closed AMA Rural Bank (RB) of Mandaluyong, Inc. for refusal to comply with their legal duty to account for and turn over bank records under their accountabilities.

The PDIC gave the accountable individuals 24 hours to report to the Receiver and comply as they are mandated by law, or face legal action. As of November 19, 2019, only 16 accountable employees of the Bank reported at the bank premises.

When a bank is served a notice of closure, employment is terminated by operation of law but directors, officers and employees who hold assets, records, documents in trust or under administration have a duty to account for and surrender these to the Receiver as well as provide information relating to the assets/ records.

The PDIC sealed bank equipment, vaults and cabinets containing bank records. After the 24-hour deadline expired, the PDIC commenced the inventory-taking with a person-in-authority as witness. The PDIC also sought the assistance of government authorities in the conduct of investigation on possible fraud, irregularities and anomalies that may have been committed in the Bank.

Section 26 (f) (1) (h) of the PDIC Charter states that refusal to turn over or destroying or tampering bank records by any director, officer, employee or agent of a bank are punishable with imprisonment of not less than six (6) years up to twelve (12) years or a fine of not more than P10 million, or both, at the discretion of the court.

The PDIC assured the public that alternative plans are being pursued to minimize delay in the payment of deposit insurance to all insured depositors of AMA RB. It has started meeting with depositors and borrowers to provide updates on PDIC’s operations at AMA RB on November 21, 2019 for those at the Head Office, and its branches in Pasig City, Pampanga, Baliuag, Calamba City and San Pablo City. The schedules of meetings with depositors and borrowers in the other branches are announced through the PDIC’s website (www.pdic.gov.ph) and its social media accounts.

PDIC’s public assistance personnel stationed at the Bank’s offices may also assist and reply to queries of depositors and borrowers. They may call the PDIC Public Assistance Department at (02) 8841-4141 during office hours for more information. For those outside Metro Manila, the Toll Free Hotline, 1-800-1-888-PDIC (7342), is available during office hours. Inquiries may also be sent by e-mail to pad@pdic.gov.ph or via private message to the official PDIC Facebook account at www.facebook.com/OfficialPDIC.

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The Philippine Deposit Insurance Corporation (PDIC) was established on June 22, 1963 by Republic Act 3591 to provide depositor protection and help maintain stability in the financial system by providing deposit insurance. Effective June 1, 2009, the maximum deposit insurance coverage is PhP500,000 per depositor. All deposit accounts by a depositor in a closed bank maintained in the same right and capacity shall be added together. A joint account shall be insured separately from any individually-owned deposit account.

PDIC news/press releases and other information are available at the website, www.pdic.gov.ph.

Corporate Communications Dept.
PHILIPPINE DEPOSIT INSURANCE CORPORATION
Tel: (02) 8841-4636 to 39
Trunkline: (02) 8841-4000
Website: www.pdic.gov.ph.
Email: ccd@pdic.gov.ph
Facebook: www.facebook.com/OfficialPDIC
Twitter: www.twitter.com/OfficialPDIC