This is an AI-generated summary, which may contain errors. For context, always refer to the full article.
The Sandiganbayan sentenced former bank executive Romeo Aguilar to six to 10 years in prison and banned him from holding public office for life.
MANILA, Philippines – The Sandiganbayan has convicted a former executive of the Development Bank of the Philippines (DBP) over the undervaluation of defrauded assets that caused the bank a loss of more than P43.4 million 13 years ago.
The 6th division of the anti-corruption court, in a ruling on Wednesday, March 25, found former DBP assistant vice president Romeo Aguilar guilty of gross negligence for setting the appraised value of the seized property of Milestone Paper Products Incorporated in Cabuyao, Laguna at P56. It was found to be below the adjusted value of P116.9 million.
The court sentenced the former bank executive to six to 10 years in prison and barred him from serving in public office for life, while forfeiting all retirement benefits and severance pay.
He was also ordered to pay DBP P43.452 million, with 6% annual interest until fully paid.
The court’s 73-page decision, signed by Associate Justice Kevin Narce Vivero and concurred in by Associate Justices Sarah Jane Fernandez and Lord Villanueva, indicated that Aguilar also approved the higher bid price of P45.82 million instead of P89.3 million. As a result, the court said, the state bank lost in the sale of code to JRK Holdings Corporation.
The Sandiganbayan ruled: “Accused Aguilar unilaterally and without authority lowered the value of the property mortgaged to DBP related to the MPPI loan. Worse, accused Aguilar removed the value of the lot covered by TCT No. 643861, thereby lowering the assessed value of Cabuyao-REM.”
The Cabuyao property consisted of seven lots, six of which were improvements, which were transferred by DBP’s marketing department to Aguilar’s rehabilitation management department in December 2011.
The anti-corruption court said Aguilar requested a re-appraisal only on May 3, 2013 and “quickly proceeded” with the sale of the rejection on July 11, 2013 without waiting for a report from the bank-certified appraiser Intech Property Appraisal Incorporated.
Before the seizure, the court noted that the properties were already valued at P1,500 per square meter, or about P135.31 million, while a separate appraisal by the DBP’s credit assessment management department put the price at less than P1,400 per square meter, or more than P103.5 million.
The Sandiganbayan said Aguilar unilaterally adjusted the valuation of the property by excluding 40,418 square meters, giving undue benefits to JRK at the expense of DBP.
“For all intents and purposes, he handed Cabuyao-REM to JRK on a silver platter. This was unauthorized, illegal, and shocking,” the court said.
The court said a state bank executive like Aguilar was expected to act with “great and undivided loyalty” to the bank and perform his duties “with due care, extraordinary diligence, skill, and good faith.”
It said Aguilar “failed to live up to the level of diligence he claimed … he should have been the first to follow the stated rules … unfortunately, however, he was the first to break them.” – Rappler.com
