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De Castro: Legacy boss not above the law

By Cynthia Balana
Philippine Daily Inquirer
First Posted 19:05:00 02/04/2009

Filed Under: Legacy banking group, Government, Congress, Health, Insurance, Education, Banking

MANILA, Philippines?Breaking his silence on the Legacy pre-need scandal, Vice President Noli de Castro asked critics on Wednesday to stop dragging his name in the controversy, saying he would never allow anyone to use him in evading their responsibilities to the law, regardless of their affinity to him.

De Castro was reacting to accusations that Legacy owner Celso de los Angeles, who has been accused of swindling investors out of billions of pesos, was his friend and that the Vice President had endorsed the latter?s appointment as president of the National Home Mortgage Finance Corp. This agency is responsible for disposing of the agency?s non-performing portfolio, including foreclosed housing units with delinquent loans.

De los Angeles, now mayor of Sto. Domingo, Albay, is the president of the municipal mayors? league in the province.

?As a public official, it is my concern and responsibility to see to it that the law is enforced. It is my personal belief that no one is above the law whether you are a friend, enemy or a relative. The law should be applied and due process should be observed,? De Castro said in an interview.

?What is important is that our legal processes should determine his innocence or guilt,? he said.

The Vice President said that government must see to it that the interests of the plan holders and depositors were protected.

?Personally, I sympathize with the plan holders and depositors of Legacy, and it is important that our government agencies do everything to expedite the resolution of their claims,? he stressed.

De los Angeles has defended his ?double-your-money? schemes and blamed the central bank, the media and the financial crisis for the collapse of his business empire.

He said his group, established in 1998, was able to lure about 50,000 plan holders and collect more than P1 billion in premium contributions.

But things went sour for the Legacy Group after it went to the Securities and Exchange Commission in December to ask for the dissolution of its pre-need business due to insolvency, he said.

Weeks ago, the Bangko Sentral ng Pilipinas ordered nine of the group?s rural banks closed for alleged malpractices, including the illegal investment of bank deposits.

De Los Angeles said his group?s pre-need business, which offered pension, educational and health plans, was forced to close because it was hurt by the unfavorable reports on the Legacy network of banks.



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