Mar 272015

MANILA, Philippines – A former rural bank president has been found guilty by a municipal trial court for submitting falsified documents to the Bangko Sentral ng Pilipinas.

In a statement, the BSP said Pepito Miradora Cilos, former president of the closed Rural Bank of Milaor (Camarines Sur) Inc. was sentenced by the 5th Municipal Trial Court of Camaligan-Gainza-Milaor, Camarines Sur to imprisonment and payment of fines.

The prison sentence consists of a four months and one day of arresto mayor to two years, four months, and one day of prision correccional for the falsification of commercial documents and a one year imprisonment for false statements.

The central bank earlier filed the charges following its investigation on the transactions of the Rural Bank of Milaor.

The BSP said the cases were from the review of four loans amounting to a total of P6.5 million granted by the rural bank in May 2008.

The central bank said the four loans were found “questionable and fraudulent” by its Office of Special Investigation as the borrowers could not be located, the land title used in getting one of the loans is contentious, and the other land titles used for three of the loans were issued only a few months after the loans were approved.

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Moreover, the BSP pointed out the loan documents were “haphazardly processed” and were even lacking in documentation, and the Community Tax Certificates of the borrowers were not issued by the concerned municipalities.

These loans formed part of the bank’s loan portfolio and thus, were included in its Consolidated Statements of Condition (CSOCs) reports.

“The BSP considered the four CSOCs signed by Mr. Cilos as falsified because the CSOCs included the four loans,” the central bank said.                    

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