BSP, PDIC execs guilty of indirect contempt over court order breach

MANILA, Philippines — The Court of Appeals (CA) has found officials of Bangko Sentral ng Pilipinas’ Monetary Board (MB) and the Philippine Deposit Insurance Corp. (PDIC) guilty of civil indirect contempt after they disregarded a court order to reopen a rural bank in Mandaluyong.

In an 18-page decision promulgated on April 29, 2024, the appellate court said that the officials failed to comply with the CA’s order to reopen and return the assets of the formerly closed AMA Rural Bank.

“This Court holds that Respondents were in bad faith. Their settlement negotiations with Petitioners did not negate the fact that they refused and continued to refuse to comply with this Court’s Decision and Writ of Execution,” the court’s decision read.

The appellate court ordered each of the officials to pay a fine of P30,000.

Among the respondents of the case are:

The case originated when the BSP ordered AMA Rural Bank to cease operations and placed it under PDIC receivership in November 2019, due to purported liquidity problems.

This has been assailed by the petitioners until it reached the CA in 2020.

The appellate court then nullified the resolutions of the MB and ordered the return of the seized bank assets.

However, according to the CA, BSP and PDIC officials implemented numerous delay instead of complying with the court order.

Among the said delays include filing of criminal charges against AMA Rural Bank and seeking a temporary restraining order before the Supreme Court.

“This Court is compelled to conclude that the delay is deliberate, given that the procedural complexities highlighted by Respondents do not align with the actual simplicity of the instructions of the Court,” the CA’s decision read.

“After establishing the contemptuous acts of the officers and directors of BSP and PDIC in defiance of the writ issued by this Court, this Court finds that Respondents must be adjudged guilty of indirect contempt of court,” it added.

Philstar.com has reached out to the BSP, PDIC and some members of the MB for comment, but they have yet to reply.