THE Regional Trial Court (RTC) of La Trinidad, Benguet Branch 63 has convicted former board members of the Cooperative Bank of Benguet, Inc. (CBBI), for violation of Republic Act 7653 or the “New Central Bank Act” and the Bangko Sentral ng Pilipinas’ (BSP) Manual of Regulations for Banks (MORB).
The RTC of La Trinidad found the accused Aurelio G. Lapniten, Miguel P. Luma-ang, Crisaldo P. Badival, Melecio K. Calubandi and Antonio P. Kito guilty beyond reasonable doubt and sentenced them to pay a fine of P80,000 each, without subsidiary imprisonment in case of insolvency.
The criminal charges were brought about from the Directors, Officers, Stockholders and Related Interests (DOSRI) loan granted by the accused officers to the CBB Cooperation Foundation Inc. (CBBCFI).
Investigations found out that the CBBCFI incorporators, officers, and directors were also former and current directors of the CBBI.
“The accused, who pleaded guilty, approved a DOSRI loan that grossly exceeded the individual ceiling for such loans, in violation of the approval requirements under Section X330 of the MORB, in relation to Section 36 of Republic Act 7653, The New Central Bank Act,” the BSP said.