PDIC to sue uncooperative officials of AMA Rural Bank

MANILA, Philippines — State-run Philippine Deposit Insurance Corp. (PDIC) yesterday threated to sue the uncooperative officials and employees of the closed AMA Rural Bank of Mandaluyong Inc. owned by businessman Amable Aguiluz.

In a statement, PDIC said it would file criminal charges against directors, corporate secretary, officers and employees of the shuttered bank for refusing to comply with their legal duty to account for and turn over bank records under their accountabilities.

The PDIC gave the accountable individuals 24 hours to report to the receiver and comply as they are mandated by law, or face legal action.

The state deposit insurer said only 16 accountable employees of AMA Rural Bank reported at the bank premises as of Nov. 19.

The central bank issued Resolution No. 1705.D last Nov. 7 prohibiting AMA Rural Bank from doing business in the Philippines pursuant to Section 30 of Republic Act 7653 or the New Central Bank Act.

PDIC took over the bank on Nov. 8 and sealed bank equipment, vaults and cabinets containing bank records.

After the 24-hour deadline expired, the PDIC commenced the inventory-taking with a person-in-authority as witness. It also sought the assistance of government authorities in the conduct of investigation on possible fraud, irregularities and anomalies that may have been committed in the bank.

PDIC said Section 26 (f) (1) (h) of its charter under Republic Act 3591 states that refusal to turn over or destroying or tampering bank records by any director, officer, employee or agent of a bank 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.

“When a bank is served a notice of closure, employment is terminated by operation of law but directors, officers and employees who hold assets, records, documents in trust or under administration have a duty to account for and surrender these to the receiver as well as provide information relating to the assets or records,” PDIC said.

The PDIC assured the public that alternative plans are being pursued to minimize delay in the payment of deposit insurance to all insured depositors of AMA Rural Bank.

The Mandaluyong-based bank has 8,434 deposits accounts with deposit liabilities amounting to P1.4 billion. Of the total amount, about 92.06 percent or P1.3 billion are insured deposits.