The Regional Trial Court (RTC) of Cabugao, Ilocos Sur (Branch 24) convicted former officers of the now closed Rural Bank of Magsingal, Inc. (RB Magsingal) for violation of Republic Act (RA) No. 8791 (The General Banking Law of 2000), in relation to RA No. 7653, as amended (The New Central Bank Act), and the Manual of Regulations for Banks (MORB) issued by the Bangko Sentral ng Pilipinas (BSP).
RTC of Cabugao found accused Mario Rosalino U. Gorospe, former Chairman, President, and General Manager; and Bethsaida U. Sagsagat, former Compliance Officer and Corporate Secretary of RB Magsingal, guilty beyond reasonable doubt of 22 counts of violation of the provisions of RA No. 8791 pertaining to loans granted to Directors, Officers, Stockholders and Related Interests (DOSRI), and participating in fraudulent transactions. Gorospe and Sagsagat are sentenced with a penalty of imprisonment of two to five years for each violation.
According to the court, the criminal cases stemmed from the DOSRI loans obtained by Gorospe and Sagsagat in violation of the approval, reportorial, and ceiling requirements provided under the law and the MORB. The court also stated that they were involved in various fraudulent transactions causing financial damage to RB Magsingal and its depositors.
The BSP ensures that supervised banks implement good governance practices and are compliant with existing laws, rules, and regulations. Through its regulatory and enforcement actions, the BSP maintains the soundness of the financial system and protects public interest.
Source: Bangko Sentral ng Pilipinas (BSP)