Philippine Deposit Insurance Corporation (PDIC) President Jose C. Nograles renewed his call to former officers and employees of the Legacy related banks and companies to turn over the documents still in their possession, or else face legal sanctions.

Claims processing for the deposits in the 12 Legacy related banks closed by the Monetary Board, is being hampered by the lack of complete documentation. The documents are critical in examining and validating deposit accounts which form part of the validation process prior to payout. Last week, PDIC announced that based on initial verification, it had classified about P6.0 billion in deposit accounts as Doubtful. These deposits will be subject to further scrutiny where completeness of documentation is vital.

Demand letters have been sent to former officers of the closed banks for the submission of documents. However, PDIC has not received any reply so far. Nograles also issued a call to former officers for the turnover of documents last week. Meanwhile, the Corporation’s Legal Affairs Sector is pursuing the demand for documents. Officers and employees of the Legacy Banks who fail to comply are liable to face imprisonment and/or be subject to fines as provided by the PDIC Charter or Republic Act 3591 as amended.

Section 21 (f) of the PDIC Charter provides for the penalty of prision mayor or a fine of not less than P50,000 but not more than P2 million for refusal to turn over, or destroy or tamper bank records. The penalties also apply to fraudulent disposal, transfer or concealment of any asset, property or liability of the closed bank under receivership of PDIC. In the past, PDIC has successfully prosecuted officers of other previously closed banks for violating this provision.

Former Legacy officers and employees who fail to comply with the demand letters and who commit the violations in Section 21 (f) of the PDIC Charter shall also be brought to court.

Those who wish to turnover documents still in their possession may do so to authorized PDIC officers at various bank sites, or they may call telephone numbers (02) 841-4840 or 841-4841. They may also turnover the documents to the Committee on Trade and Industry headed by Senator Mar Roxas. All documents should be properly inventoried, received and documented.