RCBC chief to take steps to return Bangladesh funds

MANILA - Rizal Commercial Banking Corporation (RCBC) Lorenzo Tan on Tuesday promised to urge the bank's board members to return part of the $81 million stolen from Bangladesh if they are found liable in laundering the fund.

At a hearing led by the Senate Blue Ribbon Committtee, Tan first admitted that RCBC's market value has fallen after four local banks in their Jupiter branch received the stolen money last February 5.

Senator Ralph Recto suggested that RCBC's market position could be improved if it pledges to return some $50 million out of the total funds.

"Assuming that the RCBC gives this to the Bank of Bangladesh, your P5 billion profit minus P2.2 billion ($50 million), kita pa rin kayo ng P3 billion," Recto said.

"Maybe your market price will improve to what it used to be and you would gain from that anyway. Maybe your stock price will hit whatever value and you make the protocol corrections."

In reply, Tan conceded that, "Our business is an actuarial business... We either lose money on bad loans, bad trades or operational losses like this one."

He added that on the average, RCBS provisions P1 billion to P2 billion every year on losses from bad transactions like those involving the Bangladesh funds.

Given this, he promised: "If we're found liable, I would recommed to the board to set aside a certain amount of money."

- ABS-CBN News Channel, 12 April 2015

source: www.abs-cbnnews.com

Palace denies hand in Recto resignation

MANILA - Malacañang distanced itself from the resignation of Senator Ralph Recto as chairman of the Senate ways and means committee, saying it had nothing to with it.

“[His] resignation is his own prerogative. We did not have any hand there,” presidential spokesperson Edwin Lacierda said, stressing that there was no pressure from the Palace on Recto.

The Palace is hoping that Congress will pass a sin tax measure that will “address and sufficiently fund” the universal health care program of the administration.

The Palace is leaving it up to Congress to work on the timeline for the passage of the bill.

Meantime, the Palace declined to comment on the challenge of Senate President Juan Ponce Enrile to Presidential Legislative Liaison Office chief Manuel Mamba to substantiate reported allegations that senators had been bribed resulting in the slow passage of the sin tax measure.

Lacierda said he has yet to speak to Mamba but added that the Palace is willing to cooperate with the Senate if it calls for an investigation of the allegation.

“If there’s an investigation, we will cooperate,” Lacierda said.

source: abs-cbnnews.com