In July, the second largest bank in the Philippines, Metrobank, reported a massive internal fraud that caused the bank P1.75 billion.
Metrobank filed charges against Metrobank’s corporate service management division head and account service manager Ma. Victoria Lopez. In the complaint, Hubert Co and Sue Sai were also included. The complaints are of qualified theft through the falsification of commercial documents and also the violation of the General Banking Law before the Makati City’s Prosecutor’s office.
The imposition of sanctions on Metrobank ranges from either reprimand or direct suspension of the officers and directors “who failed to perform adequate oversight and/or have been complacent/remiss of their duties and responsibilities.”
In determining the appropriate sanctions to be placed on MB, the BSP took into consideration the bank’s “strong financial condition and immediate corrective actions to contain further financial damage.”
“MBTC was required to allocate approximately P4.45 billion of its capital on a consolidated basis to cover for higher operational risk,”
“The requirement is subject to periodic review and would be lifted when the Bank is determined to have put in place adequate risk control measures to address the weaknesses noted,”
Meanwhile, in a separate statement that was issued at the Philippine Stock Exchange, Metrobank states that it acknowledges the examination that the BSP deem necessary.
In the statement, the bank also assured the public that this was an isolated case and no customer was affected by it.
“The bank appreciates the BSP’s affirmation of MBTC’s strong financial condition, safety, and soundness. The board and senior management accept accountability and command responsibility for the incident and commit to implementing the directives,”
“MBTC assures the public that bank operations remain business as usual,”
Furthermore, Lopez is now detained at the National Bureau of Investigation after the entrapment operation that led to her arrest. The other two are still not caught.