BSP is the target of a fresh petition for indirect contempt for failing to comply with the final and executory SC ruling

 

Due to the Bangko Sentral ng Pilipinas (BSP) and its officers' noncompliance with the Supreme Court's final and executory ruling nullifying the closure of AMA Rural Bank of Mandaluyong, Inc. (AMA Bank), a new petition for indirect contempt has been filed with the Supreme Court.  The petition, which was submitted by AMA Bank's majority owners, charges the BSP with willfully ignoring the final ruling, obstructing justice, violating due process, and causing irreversible injury to the bank and its depositors.

In a previous, final decision, the Supreme Court ruled that AMA Bank's closure was unlawful and ordered the BSP to act right away to return the bank to its pre-closing standing.  Additionally, on May 28, 2024, the Supreme Court confirmed in an Entry of Judgment that its decision was final and executory.  In spite of this, the BSP, under the leadership of its Monetary Board members, continued to file a second application for reconsideration, which the petitioners contend is illegal and amounts to an unjustified act of contempt that compromises the High Court's authority.

Following the BSP's November 2019 shutdown of AMA Bank, many of depositors experienced severe financial hardship as they were unable to access their accounts.  The controversy should have ended with the Supreme Court's final ruling, but the BSP's actions in defying the court's decision—including filing a second motion for reconsideration—have only prolonged the period of uncertainty and suffering for AMA Bank and its depositors, who were the ones most impacted by the bank's illegal closure.

In order to hold the BSP and its officers accountable for their acts, which the petitioners claim constitute a deliberate disrespect for the Supreme Court's valid decisions, the petition for indirect contempt demands that the proper punishments be applied.  In order to serve the accounts of its depositors, the petitioners have urged that the BSP promptly abide by the court's final ruling and take the required actions to reopen AMA Bank.

AMA Bank has also sought that the Department of Education (DepEd) restore its PhP1.4 billion in receivables from teacher loans that the DepEd had delayed since the bank's illegal closure in November 2019 as part of its efforts to recover assets and compensate its long-suffering depositors.  According to the agreement between AMA Bank and DepEd, the money collected from the teachers will be sent to AMA Bank less DepEd's 1% service charge.