PDIC orders Legacy to submit documents


AN official from the Philippine Deposit Insurance Corp,.(PDIC) is strengthening his call for officers and employees of the now controversial banking company, Legacy Group, for the latter to turn over the vital documents still in their possession before facing legal actions.

PDIC President Jose Nograles said that processing for the claims of small depositors in the 12 Legacy- related banks closed by the Monetary Board is presently being hampered due to lack of complete documentation.

According to a press statement, Nograles said the documents that have not been submitted are critical in examining and validating deposit accounts, which form part of the validation process prior to payout.

Last week, PDIC announced that based on initial verification, it identified some P6-billion in deposit accounts considered to be “doubtful.”

The insurance company said demand letters have been sent to former officers of the closed banks for the submission of documents but PDIC has not received any reply so far.

Nograles said should officers and employees of the Legacy Banks fail to comply with the submission of those documents, they will be liable to face imprisonment and, or be subject to fines as provided by the PDIC Charter or Republic Act 3591 as amended.

According to Section 21 (f) of the PDIC Charter, it provides for the penalty of “prision mayor” or a fine of not less than P50,000 but not more than P2 million for refusal to turn over, or destroy or tamper bank records.

The penalties also apply to fraudulent disposal, transfer or concealment of any asset, property or liability of the closed bank under receivership of PDIC. In the past, PDIC has successfully prosecuted officers of other previously closed banks for violating this provision.

Former Legacy officers and employees who fail to comply with the demand letters and who commit the violations in Section 21 (f) of the PDIC Charter will also be brought to court, the company statement read.

Those who intend to turnover the documents still in their possession may do so to authorized PDIC officers at various bank sites or may call the PDIC office.

Legacy officers and employees may also submit the documents to the Committee on Trade and Industry headed by Sen. Mar Roxas. “All documents should be properly inventoried, received and documented,” said Nograles.

At the height of the Legacy Group controversy, some 400 investors and pre-need insurance agents of the Philippine Countryside Rural Bank, as well as the Pilipino Rural Bank in Cebu have reportedly been affected by the issue.


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