State-run Philippine Deposit Insurance Corp. said Thursday it will file criminal charges against the directors, corporate secretary, officers and employees of the closed AMA Rural Bank of Mandaluyong Inc. for their alleged refusal to account for and turn over bank records under their accountabilities.
The PDIC gave the accountable individuals 24 hours to report to the receiver and comply as mandated by law, or face legal action. As of Nov. 19, 2019, only 16 accountable employees of the bank reported at the bank premises.
The PDIC sealed bank equipment, vaults and cabinets containing bank records. After the 24-hour deadline expired, the PDIC commenced the inventory-taking with a person-in-authority as witness.
It also sought the assistance of government authorities in the conduct of investigation on possible fraud, irregularities and anomalies that may have been committed in the bank.
Section 26 of the PDIC Charter states that the refusal to turn over, destruction of or tampering of bank records by any director, officer, employee or agent of a bank 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.
When a bank is served a notice of closure, employment is terminated by operation of law but directors, officers and employees who hold assets, records, documents in trust or under administration have a duty to account for and surrender them to the receiver as well as provide information relating to the assets/ records.
BSP Deputy Governor Chuchi Fonacier said legal bases existed for the closure of the rural bank.
“Hence, the Monetary Board decided to prohibit AMA Bank from doing business,” Fonacier said.
Two days after it was shut down by the BSP, AMA Rural Bank said its closure was “unreasonable,” adding the bank was liquid and fit to operate “in every capacity.”
The bank’s management said AMA was the 15th largest rural bank in the country in terms of assets with total resources at P2.76 billion as of end September 2019, based on its latest financial statement filed with the Bangko Sentral ng Pilipinas.
It is also considered as the fifth largest in capitalization with P1.04 billion, and had a net loan portfolio of P1.90 billion, consisting mainly of teacher salary loans estimated to be the 13th largest among rural banks.
“The bank is liquid with its shareholders’ capital injection of an additional P405 million, and a total deposit due from BSP/other banks amounting to P246 million. Given this strength, AMA Bank assures our clients, employees, and stakeholders that we are fit to operate in every capacity,” AMA Rural Bank said.
“We challenge the closure as unreasonable. Guided by legal measures, we are exploring all possible courses of actions to resume our full operations and continue to serve you,” it said.