House Speaker Pantaleon Alvarez has requested officers of the Development Bank of the Philippines (DBP) account for P5.6 billion in loans that it supposedly gave to a few of its clients in 2015.

During the House committee on banks listening to Tuesday (May 16), Alvarez cited a Commission on Audit report which acknowledged that the DBP board issued resolutions to grant the multi-billion peso loans.

He famous that the resolutions contained so many exceptions, exemptions and deviations from present credit score insurance policies that granting the loans might have been detrimental to the federal government.

“Kaya pinapa-submit ko sila ng listahan kung sino ang mga borrowrers na yun it loks like talagang privileged borrowers they have to bend the policies of the bank just to accomodate the loan,” Alvarez mentioned of the DBP officers current on the listening to, which included Chairman former Senator Alberto Romulo, and President and CEO Cecilia Borromeo.

Without mentioning names, Alvarez mentioned one of DBP’s clients acquired a P2.1-billion mortgage on September 30, 2015, below Board Resolution (BR) No. 0325 to partially finance a 50-megawatt photo voltaic challenge in Northern Luzon. The borrower was given an curiosity score of six on the time of approval, with 16 deviations from the financial institution’s credit score coverage.

Another board decision, BR No. 0019 dated January 28, 2015, authorised the financial institution’s participation of as much as P2 billion for an influence firm. Alvarez mentioned the mortgage proceeds had been used to redeem the ability firm’s excellent most well-liked shares and fund its different normal working functions.

A decision issued in June 2015, BR No. 0207 confirmed the financial institution authorised the mortgage of a holding firm with 11 exceptions and deviations.

“The holding company is the largest mass housing developer in the Philippines in terms of units, from years 2011 to 2013, as reported by the Housing and Land Use Regulatory Board,” Alvarez mentioned.

The COA has warned that the multibillion-peso loans granted to the financial institution’s mysterious clients “may result in a higher credit risk and eventual loss in government funds if the bank will not be able to collect from the borrowers.”