Lopez group’s loans: an attempt to divert heat from Ongpin

The Nov. 14 column of Neal H. Cruz tackled the supposed “unfairness” of the law that allows banks to write off bad debts. Cruz was particularly referring to the 2006 write-offs made by the Development Bank of the Philippines (DBP) on the equity and investment loans of Lopez Holdings.

Although Cruz was saying that his column was not meant to divert public attention from the Roberto Ongpin loan, the fact that he was explaining something that he himself claimed to be legal made me believe that he was allowing himself to be used in a squid tactic to really divert the issue of the DBP loan mess from Ongpin.

When the Special Purpose Vehicle (SPV) Law allows banks to erase debts, clearly there is nothing to debate about the write-off. It’s already a law that probably had undergone several debates. I think Cruz should look at questionable dealings of the DBP with Ongpin. The fact remains that there appears to be some irregularities in the P510 million and P150 million loans extended by the DBP to Ongpin’s Delta Ventures Resources Inc., the sale of Philex mining shares and the recent disclosure made by Sen. Serge Osmeña about the $90-million loan extended again by the DBP to Ongpin’s Global Air Services Inc. in 2008 even in the absence of a loan application.

These are the legitimate issues that should be the subject of any debate especially considering that there are questions about violations of the Bangko Sentral ng Pilipinas (BSP) rules and regulations, the DBP’s own internal policies, and anti-graft law and civil service laws (on the part of the DBP).

The opposite of legal is always illegal, and therefore, there is no point in raising the question as to whether the legal is moral. Definitely, what is immoral is something illegal.

—ABELARDO Z. ENRIQUE,

9261-A Tayuman St.,

Sta. Cruz, Manila