MANILA, Philippines - The House committee on banks and financial institutions has terminated its inquiry into the investment practices of ING Bank, a large foreign bank with operations in the country.
During its final hearing, the committee asked the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC) for their respective position papers on measures needed, if any, to protect local investors from the investment practices of foreign banks.
The inquiry was prompted by a resolution filed by Leyte Rep. Andres Salvacion Jr., who took up the cudgels for a group of ING investors led by businessman Washington Lou of Bacolod City, whose investments in the foreign bank had soured.
Leyte Rep. Sergio Apostol, committee chairman, said he wanted the BSP and SEC to inform his panel if present laws and regulations are not sufficient to protect local investors.
If these are sufficient, there is nothing more that the House could add and it will leave it to the implementing agencies like the BSP to do their job, he said.
Apostol noted if the law were deficient, he would like the BSP and SEC to recommend remedial legislation.
He pointed out that his committee could not do anything to help the group of Lou to recover their alleged losses from ING.
“They have to settle their issues with the bank,” he added.
Other committee members said the House is not a collection agency.
They said Lou has to explain, particularly to the Bureau of Internal Revenue, where and how he earned the $4 million he claimed he invested in ING.
The investors have sued ING Manila. They are seeking compensation of nearly $7 million for alleged losses suffered during the 2008 financial crisis.
However, the Apostol committee learned that Lou dealt not with ING Manila but directly with ING Singapore as evidenced by communications between him and ING Singapore, including emails.
He ordered his bank to purchase securities that were not available in the Philippines. He was a client of Deutsche Private Bank Singapore before moving to ING Singapore.