The state-owned Land Bank of the Philippines (LANDBANK) said late Monday that it was still investigating the alleged loan scam involving employees after a member of the House of Representatives called for an investigation into the matter. .
“The Land Bank of the Philippines is investigating the alleged loan scheme referred to by the president of the American Boulevard Trading Corporation (American Boulevard),” he said in an emailed statement.
“The Bank applies rigorous control processes when granting and implementing loans, based on its existing policies and all other relevant banking rules and regulations.”
On March 30, ACT-CIS party slate Representative Rowena Niña O. Taduran filed House Resolution 2543 calling on the appropriate committee to investigate the alleged scheme in which LANDBANK staff act as a mediator for the business loan applications and gets a reduction in the approved loan amount.
“(P)er the information provided to this representation‘s office, these ‘intermediaries‘ Where ‘officers‘ promise rapid loan approval in exchange for a 10% reduction in loan proceeds,” said Ms. Taduran.
The bank “insiders” would have received their cup but “a significant portion of the loan proceeds has not been released,” she says.
According to the resolution, American Boulevard President Albert M. Ching and 30 other borrowers fell victim to the scam, with some being persuaded to lend up to 100 million pesos.
The loan caused American Boulevard to close, the resolution says, because the company was forced to default on paying its suppliers and other creditors.
The resolution also stated that LANDBANK had already fired and sued the employees involved, but “offered no relief to American Blvd. for the irreparable damage caused to him.” — Emerald Jasper G. Tan