Press Release
February 9, 2012

TRANSCRIPT OF SEN. SERGE OSMEÑA III'S QUESTION AND ANSWER WITH PS BANK PRESIDENT PASCUAL GARCIA DURING THE IMPEACHMENT TRIAL

Senator-Judge Osmeña: The subpoena said ad testificandum and duces tecum, so you're not allowed to limit and provide the court with an answer and say you are limited merely on the information that you are asked to bring. Because you are also asked to testify on your personal knowledge. Is that clear?

Witness: Yes, your honor.

Senator-Judge Osmeña: 'Yung practice sa bangko, magde-deposito ang tao ng pera, tapos kapag medyo malaki at mababa naman 'yung binabayaran na interest, i-shi-shift iyan. You will have other financial instruments, like certificates of deposits, 'yung ITF, 'yan 'yung Investment Trust Funds, etc. So, 'yung original subpoena po na ni-request ng mga prosecutors sa Senate, kasama po 'yan. However, the Senate simplified it merely to mention bank accounts.

Ngayon po, will you confirm that there are other instruments that is available to any bank which can give higher yields than a simple savings or current accounts?

Witness: Yes, your honor.

Senator-Judge Osmeña: Ano po 'yun?

Witness: That would be peso time deposits, prime time deposits, 5-year time deposits.

Senator-Judge Osmeña: Alright. Ang ibig ninyong sabihin, if I opened an account in your bank, and let's say I deposited P5 million on December 1, siguro po on December 10 nanganak na po 'yun at 'yung P5 million, sasabihin po ninyo sakin, 'Alam mo sayang naman. Why don't you shift P4 million of your current account balance to a UITF or to an investment trust fund or certificates of deposit yielding 4% or 5% higher than what you would normally earn from a savings or current account deposits. Is that more or less an accurate story?

Witness: Yes, your honor. In terms of concept po, Your Honor. But just to be clear about it, we do not offer UITF accounts.

Senator-Judge Osmeña: What do you offer? You're a thrift bank so you're not allowed to offer UITF? Do you offer CDs?

Witness: Yes, Your Honor. Mga time deposits.

Senator-Judge Osmeña: Okay. So kaya ho, kulang po 'yung information na sinulat po sa subpoena sapagkat the shifting of funds could have been done before December 31 and yet, under the law, that would be assets owned by the depositor, hindi po ba?

Witness: Yes, your honor.

Senator-Judge Osmeña: Senate President, I hereby move that we subpoena any and all accounts -- time deposits, certificates of deposits and any other such financial instruments offered by the Philippine Savings Bank be hereby subpoenaed because it belongs to that category of deposits in the bank that this court was trying to find information about. I so move.

SPJPE: In connection with what accounts?

Senator-Judge Osmeña: If you want to be more limited, in connection with the 10 accounts. Moneys that were taken from the 10 accounts that were merely shifted to other types of deposits, also with Philippine Savings Bank po, or PS Bank.

SPJPE: So ordered. Issue the subpoena.

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