“Double your money scheme” offered by BF Butuan creates further woes but legal, says PDIC

by Ben Serrano

    March 25, 2011

            BUTUAN CITY (PNA) -The Philippine Deposit Insurance Corporation (PDIC) yesterday claimed “Double your Money” scheme offered by Banco Filipino Butuan City Branch while legal depending on the bank’s capacity to pay has only create further problem to the government depositors’ insurance body.

            Three depositors of Banco Filipino have so far come out into open that they deposited their money to the bank because they were attracted in the “Double your Money in 5 years” scheme offered publicly by the bank.

            Depositor Marian Petilla whose husband is a government employee claimed she deposited their hard earned money at Banco Filipino Butuan City branch because they were attracted to the offer of Double Your Money within five years scheme.

            “Two others, a friend and a sister of mine had also deposited their hard money amounting to total P300,000.00 cash because they were attracted to the scheme”, Petilla said.

            The two who refused to be identified during forum asked PDIC representatives on whether the amount they can get from PDIC under receivership program will still be double your money.

            Two other depositors murmuring in the crowd claimed they too were attracted in the double your money within 5 years which was similar offer offered by Legacy.

            The Legacy operations here in Caraga region have netted nearly P1-B from affluent traders, known politicians, teacher and government retirees who invested their retirement money attracted to Legacy’s double your money scheme.

Reportedly even a religious leader, a Bishop has invested substantial amount of money to local Legacy office in Caraga region now closed.    

            PDIC representatives explained under PDIC charter the insurance amount is only up to P500,000.00 and that certain rules or requirements be followed like it will take 90 days or up to 6 months before depositors can get back money especially those who deposited above P5,000.00.

During Butuan City’s Banco Filipino Depositors’ Forum yesterday held at local private convention center here, PDIC official information and communication officer Nathaniel Tumbokon said that while such scheme is legal because it will depend on the bank’s capacity to pay depositors, it also create further problems on how to explain to depositors that as far as PDIC is concerned it will only pay back specific amount not according to the double your money scheme.

            At least five PDIC personnel arrived here in Butuan City to implement receivership program. Two was assigned in the information dissemination while three PDIC personnel had to focus with the actual receivership.

Lack of Info Dissemination Drive in conduct of the Forum

Depositor Antonnietta Bolivar and twenty others complained that they were not properly informed about the conduct of yesterday’s Depositors’ Forum held at the local private convention center here in Butuan City

            “Had I failed to visit the Banco Filipino Branch last Wednesday of which I noticed a “CLOSED” poster was psoted outside the bank, I could  not have attended this forum because I was not informed nobody even texted or call or inform me through letter” Bolivar said.

            More than twenty depositors in the crowd also complained that they were not inform too and they only knew it after they decided to visit the Banco Filipino Butuan Branch located at A.D. Curato St., Butuan City.

            PDIC personnel present confirmed only more than 300 depositors out of 2 693 total depositors the Banco Filipino Butuan City branch attended the March 24 Depositors’ Forum. 

            PNA was trying to contact BF Butuan Branch Manager Lucy Tan but a PDIC representative at the Bank said PDIC has now taken over operations of the bank and Tan is no longer allowed to speak in behalf of the bank.  (PNA/Ben Serrano)