ACT CIS party-list Rep. Rowena Niña Taduran. (File photo)
MANILA -- A party-list lawmaker is seeking a congressional inquiry into the alleged illegal profiteering of some insiders of the Land Bank of the Philippines (LBP) who act as "go-betweens" or "agents" in loan applications.
ACT CIS party-list Rep. Rowena Niña Taduran filed on March 30 House Resolution No. 2543, to conduct an investigation, in aid of legislation, into this scheme where these agents promise the fast-approval of a loan in exchange for a cut of 10 percent in the loan proceeds.
Taduran said it is urgent for the House to look into this matter given the magnitude of the loan amounts involved, the involvement of a government-owned financial institution, and the possible effect it could have to erode the public's trust in the banking system.
"Congress is duty-bound to protect the borrowing public as well as the entire banking system from nefarious practices of unscrupulous bank personnel," she said.
Taduran cited the case of American Boulevard President Alberto Ching who applied for an initial loan of PHP50 million.
She said that a significant part of the said loan amount was not released to Ching despite the receipt by the LBP insiders of their 10-percent cut.
"The borrower was given all sorts of excuses and was coaxed by the 'agents' to apply for another PHP50 million loan. Still, the release of the loan proceeds was delayed and incomplete," Taduran said in the resolution.
She said Ching's firm defaulted on its payments to suppliers and other creditors, which eventually led to the closure of the business and the loss of livelihood of its employees.
Taduran wrote a letter to ask the LBP management to look into Ching's case.
According to Taduran, the bank conducted an internal investigation and terminated the involved employees, and filed cases against them.
However, LBP did not offer any redress to American Boulevard for the "irreparable damage" caused to it, she noted.
She also cited 30 other borrowers who were victimized by this loan scheme of these LBP insiders, with loans amounting to less than PHP100 million and even more than the said amount.
"Considering the huge amounts of the loans, it is highly improbable that low-ranked LBP employees acted without the cooperation/approval of the 'higher-ups'," she said. (PNA)
