Everything you've wanted to know about RP politics, but were afraid to ask.

Villar firm illegally secured P4.5-B loan from BSP, party-list group claims

Posted by akosistella on April 29, 2010


One of Nacionalista Party standard bearer Senator Manuel Villar Jr.’s companies secured a P4.5-billion loan from the Bangko Sentral ng Pilipinas under highly irregular terms, officials of a party-list group allied with the Liberal Party claimed Thursday.

At a press conference in Quezon City, Akbayan Rep. Risa Hontiveros said the Villar-owned Capitol Bank separately secured four loans amounting P4.5 billion from the BSP in 1998, despite some seemingly unmet loan requirements.

Hontiveros said that under the new Central Bank Act, which Villar himself authored, BSP loans should be secured by “government securities to the extent of their applicable loan values and other encumbered first class collateral.”

But there were no securities made and some of the lots made as collateral were found to cover cliffs and timberland considered public domain, said Hontiveros, who is seeking a Senate seat under the Liberal Party.

Villar’s camp refused to comment on the accusation, which came less than two weeks before the May 10 polls. But it said they have yet to get enough information on the matter.

via GMANews.TV.

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