House probe into alleged LandBank loan scheme sought; LandBank says it won't tolerate fraud

Anti-Crime and Terrorism through Community Involvement and Support (ACT-CIS) party-list Representative Rowena Niña Taduran has urged Congress to investigate an alleged loan scheme involving several employees of state-owned Land Bank of the Philippines. The bank, however, said it will not tolerate any fraud.

In filing House Resolution Number 2543 on March 30, Taduran claimed that in the alleged scheme, some of the bank's staff act as intermediary or “agent” in loan applications, promising to expedite the approval of a person’s loan in exchange for a 10% cut.

She then cited the incident of American Boulevard Trading Corporation president Alberto Ching who reportedly applied for a P50-million loan at LandBank, but a huge portion of his loan was allegedly not disbursed due to the said 10% cut by some of the bank’s employees.

"The borrower was given all sorts of excuses and was coaxed by the 'agents' to apply for another P50 million loan. Still, the release of the loan proceeds was delayed and incomplete," she said.

"Considering the huge amounts of the loans, it is highly improbable that low-ranked LBP employees acted without the cooperation/approval of the 'higher-ups'," she added.

Due to this, Taduran said Ching’s clothing company reportedly failed to pay its other creditors, causing the closure of his business and the loss of livelihood of his employees.

After writing to LandBank, the lawmaker said the bank has charged and removed the employees involved in the incident.

However, no efforts were allegedly made by the bank to make up for the damage caused to Ching’s business, she added.

In a statement, LandBank said it is conducting an investigation into the alleged loan scheme, stressing that it will not tolerate fraudulent practices opposite to its brand of public service “anchored on integrity, transparency, and accountability.”

“The Bank exercises stringent vetting processes in granting and implementing loans, based on its existing policies and all other pertinent banking rules and regulations,” the statement read.

“LANDBANK also maintains high ethical standards in the workplace and takes any violation by its employees very seriously,” it added.

Aside from Ching, Taduran said that some 30 more people were supposedly victimized by the alleged loan scheme in which loans amounted to approximately P100 million.

She said that such an issue should be immediately looked into by the Congress considering that it involves huge loans, a government financial institution is being used, and it may affect the public’s trust in the LandBank’s system.

"Congress is duty-bound to protect the borrowing public as well as the entire banking system from nefarious practices of unscrupulous bank personnel," Taduran added. —KG, GMA News