The Insurance Commission is seeking the help of Bangko Sentral ng Pilipinas (BSP) to investigate United Coconut Planters Bank (UCPB) on the lender’s alleged negligence and mismanagement of the trust fund deposits of pre-need firm Provident Plans International Corp.
“The Insurance Commission wrote a letter to BSP Governor Nestor A. Espenilla Jr. requesting that a fact-finding investigation be conducted on UCPB in connection with the handling of the trust fund deposits of Provident Plans,” Insurance Commissioner Dennis B. Funa said in a statement over the weekend.
“This request was prompted by the letter from Siguion Reyna Montecillo and Ongsiako Law Offices, counsel of Provident Plans, to the Insurance Commission alleging that UCPB committed gross negligence and fraudulent mismanagement of Provident Plans’ trust fund deposits, which resulted in the impairment of the required capital and deficiency in required trust fund of the said pre-need company.”
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“Upon evaluation of Provident Plans’ request, we deemed it proper to refer the same to the BSP considering that the regulatory and supervisory powers over UCPB is vested upon it,” Funa added. “Nevertheless, we required UCPB to submit to us their reply on the allegations of Provident Plans.”
Last month, the Department of Finance said the Insurance Commission may place Provident Plans under conservatorship due to its poor financial state.
