The Development Bank of the Philippines (DBP) should report on the status of loans and the identities of three “privileged borrowers” who obtained a loan of over P5 billion from the state-owned bank in 2015, Speaker Pantaleon Alvarez said.
Alvarez said he obtained a Commission on Audit (COA) report which noted that the loans were released despite a “possible loss of government funds” and “higher credit risks.”
The beneficiaries of the loans were companies involved in the power sector and in mass housing.
During a congressional hearing, Alvarez asked Cecilia Borromeo, DBP president and chief executive officer, to check the identity of the companies.
“Pinapa-submit ko sila (DBP) ng listahan kung sinu-sino iyong mga borrowers na iyon. It looks like they’re privileged borrowers because they have to bend the policies of the bank just to accommodate the loan,” he said.
“Limited iyong capital ng bangko tapos para magpahiram ka ng ganon kalaki doon sa mga privileged borrowers, kaya tingnan natin iyon, kung ito ba nakakabayad ng loan nila, tingnan natin kung hindi ba nawawala iyong pera ng gobyerno,” the Speaker added.
Alvarez said the DBP could easily obtain the information about the borrowers because the information was not covered by the Bank Secrecy Law.