September 6, 2016

Makati Regional Trial Court (RTC) Branch 142 is set to arraign high ranking officials of the closed Export and Industry Bank (EIB) on September 7, 2016 for conducting business in an unsafe and unsound manner in violation of Section 21 (f) (1) of the Charter of the Philippine Deposit Insurance Corporation (PDIC). The offense is punishable by imprisonment of six (6) to twelve (12) years or a fine of not less than PHP50,000 but not more than PHP10 million, or both, at the discretion of the court.

Juan Victor S. Tanjuatco, former EIB President and Board Director, and Aurea I. Yamsuan, former Head of EIB’s General Services Group, posted bail on August 31, 2016 following the issuance by Judge Dina Teves of Makati RTC Branch 142 of warrants of arrest against them.

The Department of Justice (DOJ) earlier filed a criminal information against Tanjuatco and Yamsuan for selling a foreclosed property of EIB without payment from the buyer.

The property was subject of a case filed against EIB by the property’s original owners. It was later sold to a certain Virginia Viray without any payment to the bank, its only consideration being the assumption by Viray of the future liability in case EIB loses the case filed by the original owners. The latter were claiming PHP4.48 million as actual and compensatory damages and an additional PHP100,000 as attorney’s fees and other damages. With only this as consideration, the DOJ resolved that this may result in material loss or damage to the bank, its creditors, investors and stockholders. In the Resolution issued in July 2015, the DOJ agreed with PDIC that the sale of the foreclosed property located in San Lorenzo Village, Makati City on February 9, 2012 is “manifestly and grossly disadvantageous to EIB”. PDIC is the liquidator of the closed EIB.

Filing of charges against officers of the closed EIB is in support of PDIC’s efforts to bring to justice parties that engage in acts that place depositors and the Deposit Insurance Fund (DIF) at risk. PDIC continues to pursue legal actions against bank officials and personnel who engage in unsafe and unsound banking practices that pose grave threats to the stability of the country’s banking system. PDIC is mandated to generate, preserve, maintain faith and confidence in the country’s banking system, and protect it from illegal schemes and machinations.

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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 P500,000 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.