Banco Filipino Savings and Mortgage Bank (BF) funded its operations through pyramiding or Ponzi scheme benefiting its officers to the detriment of its depositors, the central bank said Tuesday.
The Bangko Sentral ng Pilipinas (BSP), in its 170-page Comment/Opposition filed before the Court of Appeals (CA) as an answer to BF’s petition questioning its being placed under receivership, said BF used new deposits to pay its liabilities while BF officers took loans without paying them back.
The thrift bank was placed under receivership of the Philippine Deposit Insurance Corporation (PDIC) last March 17 after central bank’s policy-making Monetary Board (MB) noted BSP’s report about the bank’s insolvency.
For one, the BSP said BF lawyers, led by former Securities and Exchange Commission chairman Perfecto Yasay, who is also a BF vice chairman, and Harry Roque were paid P245 million last year alone, P131 million of which was paid from October to December.
Legal fees exceeded the bank’s average total income of P242 million from 2007-2000, it said.
Also, the closed-bank’s officers, led by Bobby Aguirre, and consultants were paid around P250 million last year. The officers and other stakeholders took a total of P2.2 billion worth of loans from the bank but this was “never paid.” – PNA