Luzon Development Bank tied to Bautista accounts, says Sen. Escudero

The hands of Luzon Development Bank (LDB) are tied when it comes to the supposed accounts of former Commission on Elections (Comelec) Chairman Andres Bautista, Senator Francis Escudero said Wednesday.

"I understand where the LDB is coming from ... We cannot force them and we should not force them to violate existing laws unless it is repealed," he said during a Senate hearing.

Escudero chairs the Senate Committee on Banks, Financial Institutions, and Currencies, which is currently probing into the supposed ill-gotten wealth of Bautista.

Republic Act No. 1405, or The Law on the Secrecy of Bank Deposits, protects as "absolutely confidential" all deposits of whatever nature with banks or banking institutions in the Philippines are and may not be examined.

Covered by the law are investments in bonds issued by the government and its political subdivisions.

Violators may be imprisoned by not more than five years or fined not more than P20,000, or both, upon discretion of the court.

During the hearing Wednesday, a representative of the Laguna-based thrift bank was asked a series of questions regarding the supposed accounts of Bautista with the bank, but its representatives declined to give details as they were bound by the law on secrecy of bank deposits.

"Just to avoid any liabilities for Luzon Development Bank and other banks, they need a way out too until we repeal (the law on secrecy of bank deposits)," Escudero said.

Escudero said earlier there were moves to relax the law on bank secrecy at the Senate.

Amendments to the bank secrecy law have been advocated by Bangko Sentral ng Pilipinas (BSP) Governor Nestor Espenilla Jr. for the central bank to be able to look into bank deposits.

On October 11, Bautista made public his intention to resign as COMELEC chairman by the end of 2017 "due to personal reasons."

However, Malacañang told Bautista on October 23 that his resignation was accepted and would be effective immediately. — Jon Viktor Cabuenas/VDS, GMA News