RTC tells UOBP to disclose details of buyout deal

The Manila Regional Trial Court (RTC) has ordered officials of the United Overseas Bank of the Philippines (UOBP) to disclose the settlement agreement for the buy-out by the Singaporean investors of the former Westmont Bank.

Aside from an examination and copying of the settlement accord, the court also ordered that deposition on details of the deal be taken from UOBP president Chua Teng Hui, Jollibee chairman and president Tony Tan Caktiong, and businessman John Espiritu.

The deposition of Wee Cho Yaw, the chairman of the United Overseas Bank Ltd. Of Singapore, will be conducted at the Philippine Consulate in Singapore, the court ordered.

The order by Judge Artemio Tipon of RTC Branch 46 was based on the motion by Farmix, a minority stockholder of UOBP, for the "production, inspection and copying of documents and notice to take deposition upon oral examination."

The Farmix Group, a part of the controlling shareholders of Westmont Bank, broke up with the group of former Finance Secretary Edgardo Espiritu after a scandal hit Wincorp. The bank’s investment arm. Farmix later revoked John Espiritu’s appointment as the firm’s attorney-in-fact.

Farmix lawyer Roan Libarios said the excuse being advanced by the Espiritu Group that his client was excluded from the settlement because it failed to contribute in paying the filing fee "is a blatant lie."

"The Espiritu Group did not even bother to inform Farmix it was filing a case against UOBP," adding that Farmix learned about the case from the newspapers," Libarios said.

Libarios said that while the Farmix Group may have disassociated itself from the Espiritu Group, it did not surrender its rights as part of the former controlling shareholders of Westmont Bank.

Libarios also debunked the claim of the Espiritu Group that Farmix Group owns only 258 nominal shares in UOBP. The lawyer said that Farmix has claim over portions of the 33 percent equity subscribed in the name of Jollibee chairman Tony Than Caktiong and his brother William Tan Untiong.

The deposition of Tony Tan Caktiong, Chua Teng Hui and John Espiritu will be taken starting Jan. 15, 2003 at the Ateneo law School, Thesis Room, Ateneo Professional School Building at Rockwell Center and shall "continue from day to day until completed."

The testimony of UOBL chairman Wee Cho Yaw "will be taken before the consul General of the Republic of the Philippines on the 20th day of January, 2003, starting at 9 a.m. and to continue day to day until completed."

The UOBP officials as well as Tan Caktiong and John Espiritu are also expected to testify at the hearings of the House committee on banks, chaired by Rep. Jaime Lopez on the UOBL deal and the Wincorp scandal starting next week.