Press Release
February 3, 2009

ENRILE TO GMA: 'START FIRING' OFFICIALS FOR LEGACY FIASCO

Senate President Juan Ponce Enrile yesterday asked President Gloria Macapagal-Arroyo "to start firing some people" in government for failing to protect the interest of hundreds of depositors of the Legacy Group of rural banks which has filed for dissolution.

"I think it is about time that the President and the Government start firing some people in order to wake them up to do their job," Enrile said in a radio interview over the Senate investigation into the dissolution of rural banks belonging to the Legacy Group, leaving depositors unable to recover their deposits.

Enrile referred in particular to officials of the Securities and Exchange Commission and of the Bangko Sentral ng Pilipinas whom senators accused of being negligent in protecting depositors.

"It's not right that they should adopt a lackadaisical attitude in their work," Enrile said in Pilipino. "They had seen the problem. Why did they not solve it?"

Enrile added, "They said we have to balance between regulation and capital formation. We encourage capital formation provided that the people operate within the law and not to injure their beneficiaries. The moment the people will be injured, government must step in and act to solve the problem."

The Senate chief specifically mentioned Jose Aquino, director of the non-traditional securities and exchange department of the Securities and Exchange Commission. "You see that guy Aquino yesterday, he is ignorant about his job," declared Enrile.

Enrile also mentioned Deputy Governor Nestor Espenilla, Jr. of the BSP. "Hindi ko na sasabihin yun (I do not need to say it). But as a matter of common sense, in the case of Bangko Sentral's Mr. Espenilla, as you see on television last night, he was arguing if they are really violating the law. But the question is does he really own a rural bank?"

Enrile continued, "Does the violation of these people negate the fact that you own a rural bank? He should answer the question. He should deny the ownership of the rural bank if indeed he is not (the owner). That is in conflict of his interest as a bureaucrat supervising the banking system and at the same time owning a bank."

"The trouble is (they are blurring) the issue pag nasasangkot na sila, sasabihin nila, nagba-violate ba sila ng batas (if they are caught in a bind, they say they might violate the banking law). So what if you are violating the banking law? That is another thing. But the question is, Mr. Espenilla, do you really own a rural bank? The charge against him is that he owns a rural bank and that he is making life difficult for the other guy. For all I know, that gentleman who owns the Legacy is not a reliable person but he must answer the question."

Enrile declared that if he were the head of the BSP, he would order an immediate investigation if any of his officials or employees are said to be involved in graft. "At least I will investigate it (the report). I will not confuse the issue by saying that they will be violating banking laws. I will and check look whether there is really a leak in the pipe of my own house."

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