A new petition for indirect contempt has been filed with the Supreme Court against the Bangko Sentral ng Pilipinas (BSP) and its officers for their failure to comply with the Supreme Court’s final and executory decision nullifying the closure of AMA Rural Bank of Mandaluyong, Inc. (AMA Bank). The petition, filed by the majority shareholders of AMA Bank, accuses BSP of intentionally disregarding the final judgment, thereby obstructing justice, disregarding due process of law, and causing irreparable harm to the bank and its depositors.
The Supreme Court had earlier issued a definitive ruling declaring the closure of AMA Bank as illegal, mandating that the BSP take immediate action to restore AMA Bank to its status prior to the closure. The Supreme Court also issued an Entry of Judgment confirming that its ruling became final and executory on May 28, 2024. Despite these, the BSP, led by the members of its Monetary Board, persisted in filing a second motion for reconsideration, which petitioners argue is a prohibited motion and constitutes an unjustifiable act of contempt that undermines the authority of the High Court.
AMA Bank’s closure, which was implemented by the BSP in November 2019, left thousands of depositors unable to access their accounts, placing them under a great deal of financial strain. While the Supreme Court’s final decision should have brought an end to the controversy, the BSP’s actions in defying the ruling, including its filing of a second motion for reconsideration, have only extended the period of uncertainty and suffering for AMA Bank and its depositors, who were most affected by the unlawful closure of the bank.
The petition for indirect contempt calls for the imposition of appropriate sanctions against BSP and its officers to answer for their actions, which the petitioners contend is an intentional disregard of the Supreme Court’s lawful orders. The petitioners have demanded that the BSP immediately comply with the final court judgment and take the necessary immediate steps to reopen AMA Bank so that it could service its depositors’ accounts.
As part of its efforts to recover assets and pay out its long-suffering depositors, AMA Bank has likewise demanded the Department of Education (DepEd) to release its PhP1.4 billion receivables from teachers’ loans which the DepEd had withheld since the bank’s unlawful closure in November 2019. Under the agreement between AMA Bank and DepEd, the collections from the teachers said amount shall be remitted to AMA Bank less the 1% service fee of DepEd.
