MANILA, Philippines — State-run Philippine Deposit Insurance Corp. (PDIC) yesterday warned it would use the full force of the law after employees of the shuttered AMA Rural Bank of Mandaluyong Inc. owned by businessman Amable Aguiluz allegedly refused to turn over bank records.
In a statement, PDIC said bank employees refused to account for and turn over the records under individual accountabilities.
PDIC took over the bank last Nov. 8 after it was ordered closed by the Bangko Sentral ng Pilipinas (BSP). The central bank issued Resolution 1705.D prohibiting AMA Rural Bank from doing business in the Philippines pursuant to Section 30 of Republic Act 7653 or the New Central Bank Act.
“On the takeover date, bank employees were enjoined to account for and turnover records and other accountabilities to the PDIC, but refused,” the state-run deposit insurer said.
PDIC gave the bank 24 hours from receipt of the written demand to report to the receiver.
“Without these records, the PDIC will be unable to immediately pay the claims of deposits for insured deposits. Until the bank employees comply, the payment schedule of insured deposits shall further be delayed,” PDIC said.
It pointed out RA 3591 or the PDIC Charter states that refusal to turn over or destroying or tampering bank records by any director, officer, employee or agent of a bank are criminal acts.
“The PDIC will not hesitate to use the full force of the law to safeguard the interest of the depositing public,” it said.
Violation of the law, it warned, are punishable with imprisonment of not less than six years up to 12 years or a fine of not more than P10 million, or both, at the discretion of the court.
The management of AMA Rural Bank has questioned the closure order stating the bank was liquid after shareholders infused an additional P405 million as well as the total deposit due from BSP and other banks amounting to P246 million.
“We challenge the closure as unreasonable. Guided by legal measures, we are exploring all possible courses of actions to resume our full operations and continue to serve you,” the bank said in a statement.
The Mandaluyong-based bank has 8,434 deposits accounts with deposit liabilities amounting to P1.4 billion. It is ranked 15th largest rural bank in terms of assets with P2.83 billion and fifth in terms of capital with P1.04 billion.