LBC Express says BSP charges are 'untrue'

Posted at 09/16/11 7:31 AM

MANILA, Philippines - LBC Express Inc., the air cargo forwarder, courier and money remittance affiliate of LBC Development Bank, urged the monetary authorities on Thursday to refrain from making any more statements relating to the closure of the thrift bank just seven days earlier, citing undue negative effects on the business they have pursued since the 1950s.

From its general aviation compound offices along Domestic Road in Pasay City, LBC Express General Counsel Luis Manuel Ermitaño wrote a letter dated September 15 to Bangko Sentral ng Pilipinas Deputy Governor Nestro A. Espenilla Jr., citing him for allegedly making accusatory statements that were erroneous and untrue.

According to Ermitano, Espenilla’s statements relating to the courier firm’s business dealings with LBC Development Bank have had a negative impact on the conduct of their business.

“This is with regard to accusatory public statements and precipitate conclusions attributed to you by the press, to the effect that LBC Express Inc. did not settle remittance transactions with LBC Bank, which were published yesterday, the 14th September 2011, in, among other newspapers, the BusinessMirror, Manila Standard Today, BusinessWorld and Business Inquirer [the “subject statements”].

“In this connection, please be advised that the subject statements are not only erroneous and untrue, but they also have caused, and continue to cause, as much undue negative effect on LBC Express as if the said statements were made precisely for such purpose,” Ermitaño said.

According to the lawyer, LBC Express is a separate business entity from LBC Development Bank and is neither a bank nor a non-bank financial entity directly under the supervision of the BSP.

“Please be reminded that LBC Express is a separate entity, is neither a bank nor a nonbank financial intermediary, has been in business for over 60 years, services overseas Filipinos worldwide and provides jobs for 6000 Filipino breadwinners, it, therefore, is duty-bound and will not hesitate to vindicate its rights, not only in its own defense, but in its employees’ interests as well,” he said.

Espenilla previously told reporters the failure of LBC Express to pay the cash advances made by LBC Bank was directly to blame for the eventual downfall of the bank which is now under receivership by the Philippine Deposit Insurance Corp.

Espenilla, along with members of the Monetary Board, are in Zamboanga City at the moment on official business.