House to probe ‘bad loans’ in DBP worth P9.6-B

MANILA, Philippines — The House Committee on Good Government and Public Accountability resumed on Wednesday (February 17) the inquiry on the alleged condonation of the P1.6-B loans made by companies controlled by or affiliated with the Lopez family from the Development Bank of the Philippines (DBP).
The House Committee on Good Government and Public Accountability unanimously agreed to a motion that seeks to include in the on-going inquiry all “bad loans” that the DBP sold to special purpose vehicles (SPV) or financial companies at a loss in 2006.
But the DBP divulged that there is almost P9.6 billion pesos worth of non-performing loans and assets including those of the Lopezes.
“Magkano ang total amount na na-dispose nyo under the framework of the (Special Purpose Vehicle Act of 2002 (SPV) law? As you have said earlier, iyong P1.6B parte lang portfolio nyo of the non-performing assets,” asked Ako Bicol Partylist Rep. Alfredo Garbin Jr.
In response to Garbin, the DBP admitted to have sold P9.556 billion of non-performing assets.
The SPV Law allows banks to sell those kinds of loans at a lower value.
“Not only the Lopezes but the entire conglomerates or entities that benefited from the framework of the SPV Law ay dapat isama natin lahat,” Garbin said.
DBP also notified the lawmakers that they currently have around P7.5 billion pesos in non-performing loans and assets.
The Committee agreed to conduct an executive session to determine all the companies that failed to pay loans extended by the bank.
Anakalusugan Rep. Michael Defensor also filed a motion for the issuance of a subpoena that will compel the DBP board and management to submit the list of private companies that failed to pay loans extended by the bank, which the panel approved.
The DBP, for its part, stated that they are willing to provide the needed documents.
“In spirit, I’d like to say that we have been obedient to the due process of this honorable Committee,” said DBP President and CEO Emmanuel Herbosa.
Meanwhile, Committee Chairperson Rep. Michael Edgar Aglipay apologized to President Rodrigo Duterte for the delay of the inquiry on the matter.
According to Aglipay, this is to give way to DBP to produce the requested documents.
“Mr. President, I’m sincerely sorry. And may I humbly request for your forgiveness for the inconvenience that may have caused you by reasons of this hearing,” Aglipay said.
In his public address on February 8, Duterte once again took a swipe at the Lopezes saying that he will not allow its network ABS-CBN to operate even if they were granted a fresh franchise. MNP (with reports from Rey Pelayo)