David quits board of Ongpin-led PBCom

Posted at 12/12/2011 4:07 PM | Updated as of 12/12/2011 6:24 PM

MANILA, Philippines - Former Development Bank of the Philippines (DBP) president Rey David has resigned as board director of the Ongpin-led Philippine Bank of Communications (PBCom).

In a disclosure to the Philippine Stock Exchange, PBCom said David tendered his resignation last Friday, but the board has yet to decide whether to accept it. The reason for his resignation was not disclosed.

"Although Mr. David has tendered his resignation last Friday, the bank's board has not yet acted upon his resignation. The board will deliberate and act on his resignation during their next scheduled meeting," PBCom said.

David's departure from the PBCom board comes a month after businessman Roberto Ongpin secured regulatory approval to acquire 97% of the bank.

David was elected to the PBCom board last July. He was a director and executive committee chairman.

David was in hot water over more than half a billion pesos in loans given by the DBP to Ongpin, during his term as DBP president.  The DBP loan has been criticized as a "behest loan" and is now the subject of a Senate inquiry.

Sen. Serge Osmeña, chairman of the Senate committee on banks and financial institutions, last month said he has information that Ongpin and David committed insider trading.

In 2009, Ongpin used P660-million loans from DBP to buy a portion of the block of shares owned by the state bank in Philex Mining Corp. for P12.75 per share. Ongpin later sold the shares for P21 each to the First Pacific Group, led by Manuel V. Pangilinan. David piggy-backed on Ongpin's deal with First Pacific and sold DBP's remaining Philex shares.

The Securities and Exchange Commission and the Commission on Audit are looking into possible insider trading in the transactions since Ongpin, David and Pangilinan were all sitting on the board of Philex at the time the deals were executed.