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Friday, March 29, 2024

Payment of insured deposits in AMA Bank may face delay – PDIC

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State-run Philippine Deposit Insurance Corp. on Friday warned that the payment schedule of insured deposits of closed AMA Rural Bank of Mandaluyong Inc. could be delayed because of the bank’s refusal to turn over records to the liquidator agency.

PDIC took over AMA Rural Bank on Nov. 8 after the Monetary Board of the Bangko Sentral ng Pilipinas ordered its closure a day earlier.

“Since then, the bank employees refused to account for and turn over to the PDIC the records under their individual accountabilities. Without these, the PDIC will be unable to immediately pay the claims of depositors for insured deposits,” PDIC executive vice president Ma. Ana Carmela Villegas told reporters in a briefing in Makati City.

Based on reports submitted to the PDIC as of June 30, 2019, the bank’s total deposits amounted to P1.4 billion involving 8,434 deposit accounts. Villegas said for a closed bank of this size, the PDIC pays the depositors up to 15 working days from the takeover date.

She said AMA Bank employees on the takeover date were enjoined to account for and turn over records and other accountabilities to the PDIC but they refused.

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She said PDIC gave the bank employees 24 hours from receipt of the written demand (from Nov. 15) to report to the receiver.

“Until the bank employees comply, the payment schedule of insured deposits shall further be delayed,” Villegas said. 

She said under Section 26 of the PDIC Charter or RA3591, as amended, refusal to turn over or destroying or tampering bank records by any director, officer, employee or agent of a bank were considered criminal acts.

These are punishable with imprisonment of not less than six years up to 12 years or a fine of not more than P10 million, or both, at the discretion of the court.

PDIC officials, however, declined to divulge the name of the officials of AMA Rural Bank. They said PDIC issued 65 demand letters to comply as of Nov. 15.

“We will not hesitate to use the full force of the law… If we have bases to file cases we will do so. But after we publicized the identities [of the officials of the bank],” she said. Villegas added if bank employees continued to refuse to cooperate, PDIC “would have to reconstruct the records,” but that would take some time.

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