YASAY CASE

MANILA, Philippines (3rd UPDATE) – Former Department of Foreign Affairs (DFA) secretary Perfecto
Yasay Jr was arrested by Manila Police District (MPD) cops on Thursday afternoon, August 22.

According to a police report, Yasay was ordered arrested on March 8 by Manila Regional Trial Court
Branch 8 for "several violations" of the New Central Bank Act in relation to a case filed against him by
the Bangko Sentral ng Pilipinas (BSP).

Police said that Yasay, along with 5 "associates," were accused of "conspiring and aiding each other" in
securing a P350-million loan from the shuttered Banco Filipino Savings and Mortgage Bank while they
were officers from 2001 to 2009.

The loan, police said, was accommodated for a certain company called Tierrasud Incorporated, which is
owned by Tropical Land Corporation.

"When the loan was granted, all accused failed to report such loan accommodation to the supervision of
BSP, and despite of report of examination addressed to all accused instructing them to rectify such
violation, failed to do the same," the report added.

Where the complaint came from: The BSP filed the charges against Yasay and 9 other Banco Filipino
officials on April 4, 2011. Yasay was then director of Banco Filipino. (READ: Criminal charges filed by
Central Bank still haunt Yasay)

The BSP said Yasay and the other Banco Filipino officials "repeatedly violated several laws" for the
following:

Willful refusal to stop the conduct of unsafe, hazardous, and unsound banking practices

Falsification and issuance of false statements to hide the true financial condition of the bank

Willful refusal to file audited financial statements

Willful refusal to report DOSRI (directors, officers, stockholders, and other related interest) loans

Twenty-six counts of willful refusal to comply with numerous banking laws and BSP directives

The BSP pointed out that Banco Filipino "engaged in hazardous lending and lax collection policies and
practices."

Yasay's stand: In a Facebook post, Yasay denied the allegations, explaining that the transaction occurred
from 2003 to 2006, but he said he joined the bank only in 2009.

The former foreign secretary even took a selfie with a detention cell where he was expected to stay.

"Behind me looks like my bedroom tonight," he said in the caption.

He is not posting bail.

"I will question this abuse of process and travesty of justice," Yasay said in the same post.

Until then, Yasay is set to be detained inside the Manila Police District headquarters

Former Foreign Secretary Perfecto Yasay Jr. on Friday posted a P240,000 bail for his provisional liberty
after being arrested for his alleged involvement in various banking law violations.

In a brief Facebook post after posting bail at Manila Regional Trial Court Branch 10 Judge Daniel Leyva’s
sala, the 72-year-old diplomat said he now “enjoys the status of a provisional free man.”

Now the fight for justice and to prove my innocence begins,” he wrote.

Yasay was arrested by Manila police on Thursday evening at his home in Barangay Poblacion, Makati
City, on the basis of an arrest warrant issued by Leyva on March 8 against the former top diplomat and
six top officials of the now-defunct Banco Filipino Savings and Mortgage Bank.

Yasay’s coaccused were former Banco Filipino chair Teodoro Arcenas Jr.; vice chair Albert Aguirre;
executive vice presidents Francisco Rivera and Maxy Abad; and directors Orlando Samson and Adelaida
Adduru-Bowman.

Hospitalized

All are facing charges for violation of Section 36 of Republic Act No. 8791 (restriction on bank exposure)
and RA 7653 (violations of orders of the Bangko Sentral ng Pilipinas, or BSP) committed by the officials
supposedly between 2003 to 2006.

Among their supposed violations include granting a P350-million loan to Tierrasud Inc., which also owns
stock in Banco Filipino, and then failing to report the loan to regulators.

But Yasay said he became part of the bank only in 2009.

Yasay was rushed to Manila Doctors Hospital after suffering from high blood pressure while in detention.
He was later cleared by his doctors so he could post bail.

“At 72 years and a survivor of two cancers, it is not easy to live behind bars specially when you are
innocent and a victim of abuse of process,” he wrote in a Facebook post.

While the warrant was issued in March, it was only on Thursday that Manila police were able to finally
serve the warrant against Yasay, whose address is listed under Makati.

Supposedly, Makati police failed to serve the warrant earlier as Yasay was not around, police in Manila
said.
On Aug. 19, police said, a certain Jonn Irvin Valensuela claiming to be a representative of the BSP sought
Manila police’s help in finally arresting Yasay.

Unsafe, hazardous' banking practices

The BSP filed the charges against him and 9 other Banco Filipino officials on April 4, 2011. Yasay was
then director of Banco Filipino,

The BSP said Yasay and the other Banco Filipino officials "repeatedly violated several laws" on account of
the following:

"Willful refusal to stop the conduct of unsafe, hazardous, and unsound banking practices"
"Falsification and issuance of false statements to hide the true financial condition of the bank"
"Willful refusal to file audited financial statements"
"Willful refusal to report DOSRI (directors, officers, stockholders, and other related interest) loans"
"Twenty-six counts of willful refusal to comply with numerous banking laws and BSP directives"
The BSP pointed out that Banco Filipino "engaged in hazardous lending and lax collection policies and
practices."

Years after the BSP filed these charges against him, Yasay is said to be a candidate, too, for BSP
governor.

The New Central Bank Act of 1993 said the post of BSP governor also requires CA confirmation, but a
BSP press statement in 2001 said otherwise.