BSP disqualifies LBC Express directors from serving in financial institutions

The Bangko Sentral ng Pilipinas (BSP) has temporarily disqualified LBC Express Inc.’s director Fernando Araneta from serving as officer in any financial institution supervised by the central bank, the company said Thursday.

In a regulatory filing by parent LBC Express Holdings Inc. submitted by alternate corporate information officer Ernesto III Naval, the company said the disqualification notice was received on Wednesday, November 21.

Also earlier this week, the BSP disqualified another director of LBC Express Inc., Santiago Araneta, to serve as director or officer of any BSP-supervised financial institution.

“The disqualifaction stems from the closure of LBC Development Bank Inc. wherein Mr. Santiago Araneta was a director,” the filing read.

LBC Development Bank was closed down by the central bank in 2011, as its realizable assets were no longer sufficient to cover its liabilities.

It also accumulated a pile of advances to affiliates that further weakened its finances.

“The involvement of Mr. Santiago Araneta, if any, in the closure and the acts that led to the same is currently being evaluated by the BSP,” LBC Express Holdings said.

“Pending completion of such evaluation, it appears that the BSP has imposed such temporary disqualification,” it said.

GMA News Online has contacted the BSP for more details on the matter, but no response has been received as of this posting.

LBC Express Holdings said it is now seeking further guidance from the BSP’s policy-setting Monetary Board.

Founded in 1945 as a brokerage and an air cargo agent, LBC is in the business of express delivery and cargo shipping and 24-hour door-to-door delivery.

It also provides payments, remittance, and bills payments services within the purview of central bank supervision. —Jon Viktor Cabuenas/VDS, GMA News