By The Financial District
Sep 21, 20231 min
The Regional Trial Court of Isabela has convicted the former director/president and other officers of the closed Rural Bank of Reina Mercedes (Isabela), Inc. (RB Reina Mercedes) for violating the Bangko Sentral ng Pilipinas' (BSP) Manual of Regulations for Banks and Republic Act No. (RA) 8791 (The General Banking Law of 2000) in relation to RA 7653 (The New Central Bank Act).
The Regional Trial Court of Isabela found all the accused guilty beyond a reasonable doubt of violations of the provisions of the law pertaining to loans granted to DOSRI and participation in fraudulent transactions.
The criminal cases arose when accused former Director/President Romeo P. Garcia, General Manager Emelita B. Ramirez, Manager/Cashier Arlene C. Valenzuela, Compliance Officer Glena S. Valenzuela, and Cashier Ofelia C. Manzano were found to have participated in questionable loans granted by RB Reina Mercedes to its own Directors, Officers, Stockholders, and their Related Interests (DOSRI); and in other fraudulent or fictitious loans.
Based on the complaint filed by the BSP, the court found all the accused guilty beyond a reasonable doubt of violations of the provisions of the law pertaining to loans granted to DOSRI and participation in fraudulent transactions.
Accordingly, the court sentenced Garcia, A. Valenzuela, G. Valenzuela, and Manzano to imprisonment of four to six years, while Ramirez received a prison sentence of three years.
The compliance of BSP-supervised institutions with laws and regulations promotes the soundness of the financial system as well as the welfare of depositors and the general public.