Nlra',lnga'
Pichay motion to subPoena
PDIC records granted
3Y PETER TABII{GO
O\ER the objections of government
prosecurors, the Sar diganbayan grant-
ed the motion of former Local Water
Udl.ities Administration (I-WUA) board
chairman and now Surigao del Sur Rep.
Prospero Pichay for tle issuance of
subpoena on the Philippine Deposit
Insurance Corporation @DIC).
In a resolution dated September
6, 2019, the Fourth Division ordgred
the cletk of coutt to issue a subpoena
duces recum on rhe PDIC-Legal De-
partment requiring it to present and
produce all documents pertaining to
tlre Express Savings Bank.Loc. @SBI).
Pichay is facing charges of gtaft and
violation of the Manual of Regulation
for Banks (1r4ORB) in relation to RA
7653 or the New Central Bank La.u.
Prosecurors said he acrcd in con-
spiracy with fotmer LrifUA trustee
Enrique Senen Montilla III and man-
agement executive Wilfredo Feleo Jr.
ovet the alleged anomalous ?rcquisition
of a 60-percent sake in ESBI for P80
million in 2009.
The Of{ice of the Ombudsman
said the uansaction was attended by
fraud as it was approved+dthout being
clearcd by the Office of the President,
the Department of Finance, and the
Monetaty Board of t}le Bangko Sentral
ng Pilipinas. .
It also noted drat at the time of
quisition, ESBI was insolvent and has
been incutting losses in its oPerations.
Also questioned was the deposit of
P300 million of LVTUlfs funds into
rhe banl and an advanced payment
stock subsctiption in ESBI amounting
to P400 million. The bank went into
teceivership in 2011 resulting in alleged
losses to L\WUA.
Pichay has denied any wtongdoing,
\ PAq.'-- p*v
Thursday, September 79, 2079
saying the bank was a good investment
as shown by its P70 million earnhgs
posted in 2010 and 2011.
He has also claimed ro have Ptoof
tlut the Bangko Sentral ng Pilipinas gave
dre tansaction its imprimatut duough
a letter recommending the acquisitioo.
In his motion, the lawmaker insisted
tiat the documents under the custody
of the PDIC are releranr to his defense.
Counrering the prosecution's objec-
tion that the PDIC documents vrere
ac- not mentioned during pre-tial, Pichay
said he made teservations in the Joint
Stipulation of Facts and Issues that he
intends to mark certain documents and
certifications from the PDIC.
for Speci6cally, the papers PDIC is being
asked to bring to court perain to the
L\WUA's P300 rnillion deposit with dre
ESBI and the capial infusion of P400
million in the form of advance pal,rnent
for stock subsctiption in the bant.