Department of Justice (DOJ) officials in Cagayan de Oro City have formally charged the former chairman and other key officials of the shuttered Philippine Farmers Bank Inc. (PFBI) for allegedly defrauding the lender of millions of pesos in resources.
In a statement, the Philippine Deposit Insurance Corp. (PDIC) said the former PFBI chairman and his cohorts fraudulently obtained bank funds worth a total P30.22 million.
The bank officials allegedly charged a contracting company that was also owned by the former bank chairman for construction and renovation work even though no actual labor was done.
The PDIC said the former chairman masterminded the entire scheme.
It said the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) ordered the PDIC to shutter the 14-unit rural lender on September 17, 2009 and subsequently prosecute its officials “and unscrupulous parties who take advantage of the deposit insurance system for their gain.”
This was the same year when insured deposits were increased to P500,000 per account. None of the PFBI officials were named in the PDIC statement.