Aquino hits CA on Banco Filipino reopening

MANILA, Philippines - Another court decision – an order to reopen Banco Filipino – is getting on the nerves of President Aquino.

In a forum held Thursday at La Consolacion College, Aquino lambasted the Court of Appeals for ordering the reopening of the bank with capital infusion of P41 billion from the Bangko Sentral ng Pilipinas.

He said he found it suspicious that the decision was made at such speed on Jan. 27 or just eight days after two justices had taken over from their colleagues who had inhibited from the case.

The President has been vocal about his disdain for some members of the judiciary, including Chief Justice Renato Corona, whom he wants impeached to remove what he calls a stumbling block to judicial reforms.

“The newcomer skillfully studied the details of the case of Banco Filipino even during weekend, wherein the Bangko Sentral was ordered to infuse P41 billion,” he said in Filipino with obvious sarcasm, apparently referring to the two justices.

Aquino was guest in Thursday’s forum called “Pulong Bayan ng Pangulo” at La Consolacion College in Manila. The event was part of the commemoration of the 26th anniversary of the first People Power revolution on Feb. 25.

The President also expressed surprise that the CA’s order involved the setting aside of P16 billion from the P41 billion for “deposit base.”

“Where did the deposits go? We want to know,” he said.

“What had been saved, resuscitated, revived, in my opinion, had been mismanaged,” he added, referring to Banco Filipino.

“Even if we give it P41 billion, it will end up with nothing considering its past record. So the P41 billion intended to help the people might only end up in the pockets of a few,” he said.

Earlier, Aquino said the government – through the Solicitor General – would appeal the CA ruling.

“A capital infusion is no joke, considering that the bank had been mismanaged,” he said.

“Our lawyers are reviewing the decision of the Court of Appeals to determine the legal remedies available to us. Beyond this, we have no further comments,” BSP deputy governor Juan de Zuñiga, Jr. said after the CA released its ruling early this month.

In a 50-page decision penned by Associate Justice Agnes Reyes-Carpio, the CA granted Banco Filipino’s petition for certiorari and mandamus, saying the bank “was not accorded due process when it was placed under receivership.”

The appellate court also held that the bank, contrary to BSP’s claim, was not insolvent.

Associate Justices Vicente Veloso and Normandie Pizarro concurred with the decision.

“The BSP and the Monetary Board are hereby ordered to reopen Banco Filipino Savings and Mortgage Bank and allow it to resume business in the Philippines under the comptrollership of the BSP and the MB, complete with viable rehabilitation plan, in order to ensure fast and immediate recovery of the bank from the ill-effects of the illegal closure,” the CA said.

The CA overturned the Monetary Board’s findings in its Resolution 372-A on March 17, 2011, which cited “unsound banking practices” as basis for the closure of the bank.

“In this case, we do not see any proof that Banco Filipino committed unsafe banking practice and whether its attention was called to rectify or remedy the same. We also do not see from the records if any administrative sanction as prescribed above had been imposed by respondent BSP and MB to any of the bank’s officials and employees,” the appellate court said.