CHIZ SAYS QUEDANCOR CANNOT HIDE BEHIND BANK SECRECY LAW

The bank secrecy law covers deposits and not loans, thus Quedancor can not use it as a pretext to keep its borrowers list secret, Senator Chiz Escudero today said, contrary to claims that the said financial institution is covered by the provisions of the bank secrecy law.

Last week, Escudero asked Quedancor to publish the names of the borrowers who availed of the loan from the swine-raising program. Over the weekend, Chief Presidential Legal Counsel Sergio Apostol rebutted that "Quedancor would be liable to borrowers if it publishes their names without their permissions" saying that they are covered by the bank secrecy law.

"Bank secrecy law covers deposits. I recall it does not cover loans. Quedancor is not a deposit-taking institution. It is a non-bank financing institution. Only banks are allowed to use deposit instruments," Escudero said.

Republic Act No. 1405 (Bank Deposit's Secrecy Law) declares "all deposits of whatever nature with banks in the Philippines, including investments in government bonds, as an absolutely confidential nature and prohibits the examination or inquiry into such deposits or investments.

Escudero said Quedancor couldn't hide behind the cloak of bank secrecy law. "The law was created to protect a person's deposit and not loan. Mortgages and foreclosures are even being published and made public instruments".

"All I'm asking for is to make public the list of borrowers. What was used in this program is public fund and is therefore subject to public accountability. We the Filipino public has the rightful claim to information on where our taxes go".

The senator further added that the loans being government fund automatically subject it at any rate to government audit. The Commission on Audit should also be looking into this as the primary institution in charge of examining proper use of public funds. "Come to think of it, where is COA all along in this picture? If they have already audited Quedancor, we also want to see their findings and recommendations on this particular issue".