Former Lapu-Lapu City mayor who was also former president of Mandaue City's Rural Bank of Subangdaku, Inc. (RBSI) Paz C. Radaza and 18 other former bank officers and personnel have been convicted of falsification of public and commercial documents in connection with P2.6 billion 'dubious' loans shelled out by the bank from 2004 to 2008.
In a press briefer, the Department of Justice (DOJ) on Monday, July 1, said that Radaza and the 18 other accused were found guilty of 34 counts of falsification "for conspiring to defraud the bank billions of peso" in a decision handed down last June 7 by the Mandaue City's municipal trial court in cities (MTCC) Branch 2.
The DOJ said also convicted were former RBSI officers and employees Julius O. Eullaran, Rosana D. Ybanez, Jocelyn P. Oville, Jofelyn J. Vallejo, Eusobio L. Villaber Jr., Roel M. Wenceslao Jr., Patrick Doon T. Quitor, Vicente Capuyan Laurito, Raquel Milagros R. Paca, Agnes B. Idala, Rose Aileen B. Baldeo, Albert J. Hinos, Maribel P. Morano, Reinier Echavez, Honeylet C. Pacul, Phoebe V. Ygot, Resty Carre Elumbaring-Colot, and Reynaldo C. Tecson.
It said they were "sentenced to suffer an indeterminate penalty of one (1) year and one (1) day of prison correccional as minimum, to three (3) years, six (6) months and twenty-one (21) days of prison correccional as maximum and to pay a fine in the amount of three thousand pesos (P3,000) with subsidiary imprisonment in case of insolvency."
A copy of the decision was not immediately available. The DOJ did not state whether those convicted were imposed civil liability.
The DOJ said the case stemmed from a complaint filed before the department by the Philippine Deposit Insurance Corporation (PDIC) which conducted an investigation after RBSI declared a bank holiday early in 2009.
“Account holders of the bank tried to withdraw their money after RBSI's declaration of bank holiday but were too late after the bank denied the same due to alleged lack of financial capability,” it said.
The DOJ said the MTCC ruled that “RBSI officers/personnel made it appear that certain individuals obtained loans from RBSI when in truth and in fact, they never did nor even participated in the preparation of the documents related thereto.”
“The court said the prosecution sufficiently established the participation and probable guilt of all the accused, falsifying several public and commercial documents,” it said apparently quoting from the court's decision.
“The court also ruled that the defense failed to persuade the court of their innocence by merely denying their involvement in the massive fraud without being backed by clear and substantial evidence,” it added.
The DOJ also said the court also pointed out in its decision “the chain of events surrounding the involvement of all the accused were all supported by tangible proof.”
“This conviction demonstrates our firm resolve to go after those who defy our laws to the prejudice of our financial institutions and the general public, as well,”said DOJ Secretary Jesus Crispin C. Remulla in a statement.