Sen. Osmeña '110% convinced' Mike Arroyo behind DBP behest loans

By KIMBERLY JANE TAN, GMA News

Published June 13, 2012 3:44pm

(Updated 6:50 p.m.) Senator Sergio Osmeña is convinced that former First Gentleman Mike Arroyo was behind the P660 million in behest loans given to businessman Roberto Ongin by the Development Bank of the Philippines (DBP). "This loan could have been done in the behest of [former DBP president Reynaldo] David, Osmeña told reporters after the ninth Senate hearing Wednesday on the behest loans granted by DBP. “But of course David takes his orders from somebody. I'm 110 percent convinced that FG controlled Rey David," Osmeña added.

Ongpin’s reaction to Osemaña’s allegations

I am in London on my way back to Manila, but I want to state, as I dictate this by overseas phone to my secretary, that I am 1,000 percent sure, not only 110 percent, that Former FG Mike Arroyo had nothing to do with these loans. The fact of the matter is that DBP saw a good opportunity to make major profits and simply took that opportunity. It was a judgment call on DBP’s part which proved to be totally correct and in the process, earned for the bank a record profit of over P1.3 billion. As I have said before, I did not need FG to help me get these loans from DBP. These loans were fully collateralized and paid ahead of schedules. No wonder Osmeña’s “witnesses” are afraid to go public. They would be committing perjury if they did. It is unfortunate that the good senator seems to want to make it a career to investigate DBP loans and he uses every trick in the book to somehow connect me to them. It is also strange to me why the good Senator seems to be intent on targeting me from whom DBP made a lot of money. Why doesn’t he investigate other DBP loans in which the bank lost a lot of money, such as the loans to the Lopez Group, in which DBP is reported to have written off P1.67 billion. While he is at it, he should also look into several major loans made to friends and former employers of the present DBP Chairman. Are these loans current or have they been repaid, are they in default, rescheduled, or written off? I have never ceased to wonder why the good Senator whom I hardly know insists on picking on me, who in my entire career has borrowed from a government bank for my own account only one time, and made tons of money for that bank. I ask again, why me and not the others who are more “deserving”?

In an emailed statement to GMA News Online, Arroyo lawyer and spokesman Ferdinand Topacio said his client maintains that he had nothing to do with the loans granted to Ongpin and that he did not interfere with the decisions of the DBP, especially during the term of former President Gloria Macapagal-Arroyo.

Topacio called Osmeña's allegations "a pathetic pack of lies that shows the depth to which some politicians will go, just to keep up the appearance that they are doing something productive in the Senate."

"The shrill ululations of the distinguished Senator cheapens the institution of the Senate to which he belongs. If Senator Osmeña has nothing better to do, he should not do it in the Senate, and infect its august halls with his sui generis brand of vacuity and utter lack of sense," the lawyer said.

But he said that if Osmeña is so "cock-sure" with the accusations he made against the former first gentleman, then the senator should file cases against Mr. Arroyo before the proper fora where he can show his evidence and witnesses so that they may be "exposed to the cold light of truth.

"If he fails to do so, or in filing a case fails to prove the guilt of Atty. Arroyo, then he should resign posthaste, as the Senate has no need of a member who can lie like Osmeña does. He should also apologize to Atty. Arroyo and the Arroyo family for the injury his falsehoods have caused," he added. Philex Mining shares

In 2009, Ongpin through Delta Ventures Resources Inc. (DVRI) bought around 50 million shares of Philex Mining Corp.–then under the name of DBP–at P12.75 per share and sold the same shares after a month to Two Rivers Pacific Holdings Corporation of Manuel V. Pangilinan at P21 per share. The bank had loaned Ongpin P660 million for the transaction. Ongpin, Pangilinan, and David were all on the Philex board of directors at that time. Because of several waivers or exemptions granted to DVRI, Osmeña has repeatedly claimed the DBP loan was behest and anomalous. "You don't have to give me your financial statement. You don't have to undergo credit investigation... at tsaka approved in one day. Tinulak talaga ito. That's what I said behest loan nga ito, somebody was behesting them," he said. On Wednesday, the senator said he was positive the former first gentleman had a hand in this loan and several others with DBP and Land Bank of the Philippines. "Sabay-sabay lahat yan... an’ daming loans na nakuha sa DBP at saka talagang anomalous loans. Alphaland 1, Alphaland 2, Alphaland 3, MRT, Petron, Global 5000, Meralco at saka Philex," the senator noted. "You will not see his name. I mean he has had some smart lawyers cooking these things up for him pero lalabas din ‘yan," he added. Osmeña admitted, however, that he has yet to establish "on paper" that Arroyo was behind the loans. "I have information but I have not come up with what I call evidence that I can present… yet na talagang kay Mike Arroyo ito," he said. "I cannot give you my trade secrets now... If I do, then they'll be able to cover them up," he added. Things would unfold Osmeña also said he has witnesses. "They're just too scared to come out openly so okay lang, sabi ko, we will wait." "You also want to protect your witnesses. You don't want them to be harrassed. You don't want them to be threatened. You don't want their children to disappear on their way to school... so I’m very careful," he added. Osmeña vowed things would eventually unfold when the Senate moves on to other alleged behest loans granted by DBP and LBP. "Makikita mo sa [sale ng] MRT [shares] yung fingers ni FG or ni Gloria, sa pagbenta ng Meralco shares, sa San Miguel either by SSS and DBP... andyan din sila. Yung pagbenta ng Petron andyan din sila," he said, referring to the former President and her husband. If so, he said his committee might recommend filing corruption charges before the Office of the Ombudsman and administrative charges against DBP officials involved in the deal. Last year, Ongpin denied that he was acting as a front for Mr. Arroyo. "Mike Arroyo is a friend of mine and has been before Gloria Macapagal-Arroyo was President, but friendship does not mean that I was his crony nor that I fronted for him in any of my banking deals, much less deal at hand," Ongpin said. "It might come as a surprise to my distinguished detractors from DBP that I do not need a behestor in order to do a deal. Perhaps it is the distinguished gentlemen in DBP that now require a behestor when they make a loan," Ongpin added. —VS, GMA News

Tags: dbp, behestloans, osmena, ognpin, mikearroyo