The Regional Trial Court of Iloilo City convicted three officers of the closed Rural Bank of Badiangan (Iloilo) Inc. (RBBI) on 20 counts of violation of the General Banking Law of 2000 due to fraudulent transactions.
In its decision dated 18 September 2019, the court sentenced Bella A. Buscar, Cynthia A. Taconloy and Leni A. Abordaje to imprisonment of two to four years for each count. Buscar served as the closed bank's chairman, president and manager; while Taconloy and Abordaje were RBBI's loans and savings clerks, respectively.
The convictions are a result of a criminal complaint filed by the Bangko Sentral ng Pilipinas (BSP) against the three RBBI officers in 2016 for defrauding clients by soliciting deposits but willfully omitting said transactions in the books of the bank.
Investigations revealed that high interest rates were offered to entice the public to make such deposits.
The BSP's Monetary Board placed RBBI under the receivership of the Philippine Deposit Insurance Corporation on 05 July 2012.
In line with its mandate to promote financial stability, the BSP continues to foster high standards of governance and risk management among institutions it supervises.
Source: Bangko Sentral ng Pilipinas