Senate probe to get to bottom of bank technical problems

  • Written by Marlon Purificacion
  • Published in Top Stories
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THE Senate probe into the Bank of Philippine Islands (BPI) glitch and Banco de Oro (BDO) skimming issue aims to answer questions about what happened recently in the two banking institutions.

Senator Francis Escudero said the hearing today also seeks to dispel speculations.
“Inform the public what caused it to avoid speculation. Find out what has been done or will be done to avoid similar occurrences in the future and to fill gaps in legislation, if necessary,” said Escudero
Senate President Koko Pimentel said the Senate investigation is for transparency in the banking sector as well as hopefully answer several questions raised by the two bank incidents.
“What happened? What s happening? Is there something ‘infecting or affecting’ the banking sector?” said Pimentel when asked about what the probe would come up with.
Ranking officers of the BPI and BDO have been summoned to testify at the inquiry of the Senate Committee on Banks, Financial Institutions and Currencies into “technical malfunctions” that caused some of their clients to lose money in unauthorized transactions last week.
Escudero said the Senate will be looking into the reported unauthorized transactions and withdrawals in BPI and BDO, as well as immediate measures taken to prevent a repeat of the problem and allay concerns this could recur in other banks.
Apart from BPI and BDO officials, also expected to testify before the committee are officials of the Bangko Sentral ng Pilipinas (BSP), the Anti-Money Laundering Council (AMLC) and the National Bureau of Investigation’s (NBI) Cybercrime unit, which conducted separate inquiries into the two banks’ system malfunctions.
Escudero, however, said he opted not specify and left it up to BPI and BDO managements whom to send as their “responsible” bank officials who will face questioning by senators at the initial hearing he set at 9:30 a.m. on June 21.
Pimentel had backed the move of the banks committee to formally inquire into the BPI and BDO episodes, noting that “the matter of the security and integrity of our banking sector has now become an urgent topic to examine and be transparent about.”