PNB suspensions spark restiveness; unrelated to overprice probe, says prez

The seemingly arbitrary, vindictive suspension of 19 employees has caused unease at the Philippine National Bank.

One long-timer at the head office said his fellows “were suspended without being told why, unprecedented in our bank’s history.” Another added: “First they were suspended for one month, then the suspension was extended a second month.”

Employees reacted to this column, “Suspended for doing duty? Bank staff decry maltreatment,” April 12. They requested anonymity to avoid reprisal.

Acting president Florido Casuela confirmed the suspensions but said it was preventive, not punitive. “Preventive, so they can’t tamper with records.”

He affirmed this column that the 19 are being investigated for habitual tardiness, improper uniform, sharing of passwords, missing furniture and kickbacks from scrap buyers.

The suspended personnel are with the head office administration department. Casuela denied that it was in retaliation against the admin-staff probe of the overpriced repair of an executive jet’s engines. Two are high-level, one is managerial, the rest rank-and-file and one exonerated.

Casuela said Tuesday, April 18, he’s hurrying up the probe. Last Monday he squelched head office murmurs that the two suspended officers quietly have been offered to retire with full benefits.

A retiree-officer noted: “Collusion with scrap buyers can only be committed by higher-ups, not the lowly staff. They should’ve suspended only the top two or three. In involving the 16 others, they had to come up with petty offenses on uniforms, attendance and passwords. How many of the 8,500 other PNB workforce commit the same but aren’t investigated or disciplined?”

The Bangko Sentral ng Pilipinas asked Casuela Monday, April 17, about the suspensions. He recounted to officials a whistle-blowing on the misconducts, and the PNB board’s earlier rejection of the  $3-million overpriced aircraft repair. He dissociated the two issues.

The BSP meeting was set two weeks prior. “Main issue was my officer-in-charge status as president,” said Casuela, 80. “We’ve long been recruiting a permanent president and I’m with the interview panel.”

Summoned as well by BSP were Chairman Emeritus Lucio Tan and directors Carmen Tan, Sheila Tan-Pascual, Vivienne Tan, Lucio Tan III and Michael Tan. The first three were abroad; the last three joined Casuela. BSP routinely meets with bank presidents and directors on matters of compliance, corporate good governance and succession.

PNB’s annual stockholders meeting yesterday was to elect the new set of directors. After which, the latter was to appoint the president.

Ranked by Forbes as the Philippines’ second best bank, PNB encourages whistle-blowing as part of sustainability and compliance with BSP rules. The president and Human Resources must act swiftly on reported misconduct and protect whistle-blowers’ identities.

But a high executive cajoled the admin-staff several times to name the whistle-blower, they alleged. The exec was protecting a suspended protégé.

A second pseudonymous whistle-blower came out March 8 addressing the directors. The 19 purportedly were suspended after reporting the aircraft overprice. One director was named as causing the suspensions “on prodding of the person who requested for reimbursement” of the $3 million. Some of them have been with PNB for decades, and the black mark might curtail their retirement benefits or transfer to other financial institutions.

Calls and text-requests for interviews were unanswered by executive VP Aida Padilla and Mr. Tan’s executive assistant Clive Kian, also VP of affiliate Basic Holdings Aviation.

Mr. Tan in October 2020 had approved the overhaul of PNB’s King Air jet twin engines for $230,000. Offeror was Manila Aerospace Products Trading for overhauler Pratt & Whitney of Canada.

June 18, 2021 MAPTRA billed PNB $2,958,800.30 including 12-percent VAT. Next day Kian, on a Basic Holdings form, signed the purchase order and payment request. Kian signed for the same on PNB stock requisition form.

PNB’s admin-staff sought the help of Philippine Airlines, part of the Lucio Tan Group, to check the technicals and haggle down the price.

Oct. 25, 2021 PAL specialist officers wrote Kian: “We cannot help but raise our earnest concern about the costly repair to MAPTRA.” Their online check showed that a brand-new King Air engine costs only $845,169, or $1,690,338 for two.

P&W’s quote for brand-new swelled to more than $3 million when MAPTRA added a non-negotiable 15-percent administrative charge, plus import costs, VAT and supposed “work in progress.”

The entire deal fell through. P&W returned the dismantled engines in four crates, with a $300,000 bill. Cargo acceptance cost P5 million. The jet is now for sale as is-where is.

The Lucio Tan Group and PNB together is the country’s biggest taxpayer. Casuela said corporate good governance is primary to protect PNB’s small stockholders and depositors.

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