Press Release
February 4, 2009

ROXAS TO DE LOS ANGELES, LEGACY: PAY PLAN HOLDERS, DEPOSITORS

Liberal President Senator Mar Roxas today said Legacy Group owner Celso de los Angeles should first compensate his pre-need plan holders and bank depositors and creditors before the Philippine Deposit Insurance Corporation (PDIC) bails out his bankrupt companies.

"Mahalaga na ma-recover ng mga depositors at mga plan holders ang pinaghirapan nilang pera at ang trabaho ng gobyerno ay siguruhing mababayaran sila (It is important that the depositors and plan holders recover their hard-earned money, and the government's job is to ensure they get paid)," Roxas said.

"Sigurado ako na maraming assets 'yang si Celso de los Angeles na maaari niyang ibenta para pambayad sa mga plan holders at depositors niya. Hindi naman maaaring ang gobyerno ang magbayad nitong mga utang niya samantalang siya naman ang nakinabang sa mga perang ito (I am certain that Delos Angeles has other properties which he can sell to pay his plan holders and depositors. The government cannot pay for his financial obligations)."

Delos Angeles has applied for corporate dissolution of his chain of companies, which includes the Legacy Consolidated Inc and 13 rural banks with 29 branches, with the Securities and Exchange Commission (SEC) in December 2008.

Seven of these banks have been closed down by the Bangko Sentral ng Pilipinas and placed under receivership last month. The BSP had said it had uncovered certain irregularities - including making loans without collateral and documentation, and use of bank funds to pay for obligations of affiliated pre-need companies - in some of the Legacy-affiliated banks.

"Malaki ang pananagutan ni Delos Angeles sa mga magulang na nagtiwala sa Legacy Consolidated ng kanilang pinaghirapang mga pera para sa edukasyon ng kanilang mga anak. Hindi niya pwedeng takasan ang mga ito (Delos Angeles has an obligation to the parents who trusted their hard-earned monies to his company in the hope of securing the education of their children. He cannot run away from them)," the Ilonggo senator stressed.

He reiterated his call to SEC chairperson Fe Barin to immediately go to court and request for the issuance of attachments against Delos Angeles' properties to prevent him from disposing his assets, to the detriment of plan holders and bank depositors and investors.

Delos Angeles had earlier admitted to senators he had sold his P55 million real estate in Ayala Alabang shortly before he applied for voluntary dissolution with the SEC.

"Kailangang kumilos na talaga nitong SEC na ito. Pumunta na sila sa korte at humingi ng order para ma-i-attach ang assets ni Delos Angeles. Napakabagal talaga nilang kumilos. Kailangan pa ba naman silang turuan kung ano ang gagawin nila (The SEC should act now. They should now go to court and ask for an attachment order against Delos Angeles' assets. They are really very slow to act. Do we always have to tell them what to do?)," he fumed.

Roxas had earlier called on Barin and other SEC officials to resign for their "deliberate" negligence in protecting the interests of pre-need plan holders after their delayed action on the financial difficulties being experienced by pre-need firms.

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