Momma mia, my bank was padlocked!

No. Nut really. Charing lang!

(Reyna’s Banco de Reyna naubusan nang salapi!)

Not-for-profit companies profiting from other companies

Dahil Kontador Publico nga ako, I was once an auditress in my previous life. I’ve audited for-profit companies and no-for-profit companies who profit from other companies! Hahaha! Charing!!! Hehehe! But, I love the job! It was fun when you get to find out stuff like, pako, martilyo, kabelya at dos por dos na nakatago and who knows kung ano pang kaldero ang mga natiklop noh? Im fack, I was lucky to have been part of a team of a celebrated case of chorva in Cebu one time ago, long time immemorial, when I was working in Makati.

One manager doing coco banana

Here in the US, naswertehan also that I was given the opportunity to investigate a Business Manager who was doing some Coco Banana chorva at work. Yong koryente nang lola, car maintenance nang junakees, credit cards and get these, make-ups and underwear naka-charge sa company cards. Pinahirapan akong hanapin, but I was able to prove it. Tag price I uncovered? About $100k. Nag-serve time ang gurl.

Loans given out with no docs

So, relate ako at natatawa pa kamo ako reading this news, because Bangko Sentral ng Pilipinas uncovered certain irregularities–such as the granting of loans without collateral and documentation or use of bank funds to pay for obligations of affiliated pre-need companies–in some of the padlocked banks affiliated with the Legacy group, a central bank report said. Now, I can’t believe how abno these bank people for doing this. I mean, you don’t need one Kontador Publico license to find that. Ergo, napakasimple nang panggagagong ginawa. Like no one would find out?! Really? I mean, anong klaseng lending practices are these? At anong akala nila sa BSP?!

Padlocked banks

So, BSP shut down and placed under the PDIC’s receivership seven more banks affiliated with the Legacy group last week. The seven Legacy-affiliated banks padlocked by the BSP were:

1. Bank of East Asia based in Cebu;
2. First Interstate Bank in Tacloban;
3. Philippine Countryside Rural Bank in Cebu;
4. Rural Bank of Parañaque;
5. Rural Bank of Bais (Negros Oriental);
6. Pilipino Rural Bank (Cebu);
7. Rural Bank of San Jose (Batangas), and
8. Rural Bank of Nueva Caceres (Naga City)

Sana naman, wala kayong mga tinagong salapi sa mga bangkong yan ano?! Hahaha!

Singaporean Banks shine!

Now, understand these are rural banks. Not the typical commercial banks where millioinaires and investors from New York and far beyond will dump their holdings to protect them from the rabid financial crises that’s hounding the financial institutions in the West. Kaya, look! Some of these investors are now even shying away from Swiss banks and guess who’s shining? Singaporean banks.

Kudos to BSP

It’s a good work on the part of BSP, however, things like this should have not reached this part na BSP audit pa mismo ang makakakita. I’m not being harsh on BSP but as is usual, it’s always “huli na ang lahat“.

Compliance requirements did not work?

Now, I’m not sure how audit rules and programs and requirements goes bago dumating ang point na BSP has to audit them. But, I wonder if there were any compliance requirements na sinusunod ang mga local banks na to, so that BSP could monitor them on a regular and timely basis para di na mag-reach sa point na to dahil tyak ang tama ki Juan and the culprits were probably in the Alps of Switzerland skiing and enjoying their time.

Remember, these are rural banks, essentially serving the have nots so they can grow peanuts. Mga kawawang ka-barrio ko, nadale na naman!

Tagged as: Auditing, bank irregularities, loans without collaterals, padlocked banks, rural banks