Veterans bank still a government depository facility

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BAGUIO CITY  – The management of the Philippine Veterans Bank said that regional line agencies and local governments can still maintain their accounts with the financial institution provided that the concerned depositors comply with the appropriate mechanisms outlined in a memorandum circular issued by the finance department.

Nonilo S. Cruz, Philippine Veterans Bank president, cited regional line agencies and local governments can still maintain their accounts with the institution provided that they inform and advise the finance department of their desire to maintain their accounts with the bank.

“The finance department provided the mechanism on how government agencies and local governments can still maintain their accounts with us. We will help our depositors compose the letter informing the finance department of their desire to stay with the bank as a government depository bank in order for them to comply with the mechanisms provided for such purpose,” Cruz told members of the city council during their Monday regular session..

It can be recalled that the finance department issued Memorandum Circular No. 1, series of 2015 requiring all government agencies and local governments to deposit their accounts to government financial institutions such as the Land Bank of the Philippines and the Development Bank of the Philippines pursuant to the provisions of Executive Order (EO) No. 55, series of 2011 in order to allow the transparency in their respective cash management.

However, the finance department subsequently issued Memorandum No. 002, series of 2015 providing government agencies and local governments a one year grace period to transfer their accounts to the government depository banks prescribed in the executive order.

Cruz said the latest issuance of the finance department was Memorandum Circular No. 003-2015 informing government agencies and local governments with accounts outside government financial institutions to advise the department of their desire to maintain their deposits with private banks.

According to Cruz, Philippine Veterans Bank, which is partly owned by over 300,000 veterans of World War II, has a total asset of P50 billion with 70 percent of such assets belonging to government accounts.

He said Veterans Bank has a commerce rating of 3 which is the limit of the industry in the maintenance of government accounts, especially from different local governments from the different parts of the archipelago.

The city council invited Philippine Veterans Bank officials for them to shed light on reports that the bank is no longer a government depository bank as evidenced by the latest issuances by the finance department.

Cruz argued that department orders cannot repeal the provisions of a law that created the Philippine Veterans Bank and declared the same as a government depository bank although diplomatic representations are being made by bank officials in order to correct the aforesaid issuances that created confusion among their government depositors.

By Dexter A. See

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