Former rural bank employees convicted of submitting false loan reports to BSP

Two former employees of Rural Bank of Matanao Inc. (RBMI) in Davao del Sur were found guilty of falsifying loan reports to the Bangko Sentral ng Pilipinas (BSP).

Francisca Genivel S. Labajo and Judith P. Manayon were convicted by Regional Trial Court, Branch 18 to one year in prison and payment of fines for violating Sec. 36 of Republic Act No. 8791, or the General Banking act of 2000, in relation to Sec. 36 of R.A. No. 7653 or the New Central Bank Act.

The court found that Labajo and Manayon willfully failed to "report or transmit to the appropriate supervising and examining department of the Ban[g]ko Sentral ng [Pilipinas] the loan granted by the bank" to a RBMI stokholder.

Because the loan was considered a Directors, Officers, Stockholders and their Related Interests (DORSI) loan, it was subject to BSP regulation and required in the banks' "Report on Compliance with individual Ceiling on Direct Credit Accommodations to Directors/Officers/Stockholders".

Rural Bank of Matanao was one of the banks the BSP closed in 2011 for unsafe banking practices. — Rie Takumi/GMA News