The Development Bank of the Philippines (DBP), now under a new executive leadership, lashed out at businessman Roberto Ongpin on Wednesday for allegedly insisting on a supposed witch-hunt against former DBP officials and some of the bank’s favored friends when the bigger and more important issues concerned serious infractions in banking and ethical standards.

In a statement written by lawyer and DBP Spokesman Zenaida-Ongkiko-Acorda, the state-owned bank said Ongpin, who owns Delta Ventures Resources Inc. (DVRI), made light of the number of specific accusations when the former trade minister brushed them aside as rubbish.

In fact, Acorda said, Ongpin should be made to account for a number of business decisions that, with the alleged help of former DBP officials, exposed the bank to sanctions from the Bangko Sentral ng Pilipinas (BSP) and undermined the bank’s mission as agent for economic change and development.

Such was the magnitude and extent of the alleged banking and ethical violations that even the Commission on Audit (COA) said it missed the opportunity to generate trading gains in excess of P400 million.

Former DBP President Rey David was contacted by telephone to comment on the DBP charges but, on the advice of his lawyers, he declined .

“I would like very much to provide answers to the various charges leveled against me and some colleagues if not for the advice of lawyers insisting we should see the formal charges first before making comment,” David said.

But he committed to answer each and every charge as soon as these were formally presented to him by the proper authorities.

In any case, Acorda bared citations from the BSP issued against the DBP for unspecified banking violations that convinced the new DBP management to pursue the ongoing inquiry into Ongpin’s dealings with the government-owned bank.

She reiterated the allegedly unusual nature with which Ongpin convinced the DBP to grant DVRI business loans totaling P660 million when David was president at the bank.

The DBP previously questioned the supposed ease by which Ongpin obtained the loans, the proceeds of which were used in a transaction that allegedly denied the state-owned bank the opportunity to generate trading gains worth more than P400 million for itself.

Ongpin has since defended himself on the matter, saying the questioned transactions were “two of the most profitable loans that DBP has ever made to anyone.”

“But the truth is that these two loans exposed DBP to BSP sanctions, as in fact DBP already received on April 11, 2011, a letter from the BSP informing the bank of discovered violations of banking laws in connection with these transactions. The truth also is that the COA reported that DBP was deprived of trading gains of P412 million resulting from the sale of DBP’s Philex shares to Delta Ventures in November 2009,” Acorda said.

These pertained to two DVRI loans, one worth P150 million and the other P510 million, obtained from the DBP on the basis of alleged equity capital of only P625, 000 and losses of another P98 million.

Ongpin has since said the loans were collateralized in full and backed by P1.87 billion in securities equal to 2.7 times the loan value.

Acorda insisted that based on a COA report, the loans had collateral ratio of 1.25:1—below the standard collateral ratio of 2:1 stringently required by the BSP.

“The truth also is that Mr. Ongpin’s company was allowed to withdraw the collateral of P510 million loan without giving any substitute collateral. Thus, Delta Venture’s P501 million loans was without security whatsoever during the period that the original collateral was withdrawn,” she said.

Acorda also insisted the cited transactions were “behest” and “irregular” loans and should be cited for what they allegedly are.

She pointed out that while other DBP borrowers are routinely required to submit a number of requirements to help facilitate their loans, Ongpin was allegedly allowed to obtain his very quickly and with allegedly minimal impositions, including less than optimal loan collateral ratio and terms allegedly more favorable than those granted other borrowers.

Acorda said that while other DBP borrowers are charged a fixed interest rate plus a spread of 5 percent, Ongpin was given his with a fixed interest charge plus a more advantageous spread of only 2 percent.