THE Land Bank of the Philippines (LandBank) on Tuesday assured the public that the bank is investigating the alleged loan scheme raised by the president of the American Boulevard Trading Corporation (American Boulevard) and a lawmaker.
The LandBank made a statement after Deputy Majority Leader and ACT-CIS Rep. Nina Taduran filed House Resolution 2543 asking the leadership of the House of Representatives to look into the alleged illegal profiteering of some insiders of the LandBank who act as “go-betweens” or “agents” in loan applications.
“The bank exercises stringent vetting processes in granting and implementing loans, based on its existing policies and all other pertinent banking rules and regulations,” the LandBank said.
The bank also assured the public that it maintains high ethical standards in the workplace and takes any violation by its employees very seriously.
“The bank assures the public that it will not tolerate fraudulent practices opposite to its brand of public service for over 58 years, anchored on integrity, transparency, and accountability,” the bank said.
Rep. Taduran, in a resolution, said her office received an information that these “go-betweens” or “agents” promise the fast approval of a loan in exchange for a 10 percent percent cut in the loan proceeds.
Taduran said she also received information that 30 borrowers, including American Boulevard Trading Corp., were victimized by this scheme of LBP insiders
“Given the magnitude of the loan amounts involved and the LandBank is a government-owned financial institution, it is urgent for this House to probe the matter,” said the lawmaker.
“The scheme, if proven true, will erode the public’s trust in the banking system,” she said.