Home survey wanted on 10% reduced loan scheme at LBP
MANILA — A party-list lawmaker is calling for a congressional investigation into the alleged illegal profits of certain Land Bank of the Philippines (LBP) insiders who act as “middlemen” or “agents” in loan applications.
Representative of the ACT CIS party list Rowena Niña Taduran on March 30 filed House Resolution No. 2543 to investigate, in support of legislation, this scheme where these agents promise the rapid approval of a loan in exchange for a reduction of 10% of the loan proceeds.
Taduran said it was urgent for the House to address this issue given the magnitude of the loan amounts involved, the involvement of a state-owned financial institution and the possible effect that this could have on public confidence in the banking system.
“Congress has a duty to protect the borrowing public as well as the banking system as a whole from the nefarious practices of unscrupulous banking personnel,” she said.
Taduran cited the case of Boulevard’s US chairman, Alberto Ching, who requested an initial loan of PHP 50 million.
She said a significant portion of said loan amount was not paid to Ching despite LBP insiders receiving their 10% cut.
“The borrower was given all sorts of excuses and was persuaded by the ‘agents’ to apply for another loan of PHP 50 million. Yet the release of the loan proceeds was delayed and incomplete,” Taduran said in the resolution.
She said Ching’s company defaulted on its payment obligations to suppliers and other creditors, which ultimately led to the closure of the business and loss of livelihood for its employees.
Taduran wrote a letter asking LBP management to look into Ching’s case.
According to Taduran, the bank conducted an internal investigation and fired the employees involved, and filed charges against them.
However, LBP has offered no redress to American Boulevard for the “irreparable damage” done to it, she noted.
She also named 30 other borrowers who fell victim to this lending scheme by these LBP insiders, with loans amounting to less than PHP 100 million and even more than the said amount. (NAP)
“Given the huge loan amounts, it is highly unlikely that lower-ranking LBP employees acted without the cooperation/approval of ‘superiors,'” she said. (NAP)