AMA Rural Bank of Mandaluyong Inc. (ARB) has demanded that the Department of Education (DepEd) turn over the ₱1.295 billion in unremitted collections from loans received by a number of public-school teachers. The Bank owned by businessman Amable Aguiluz is also warning of possible legal action against key officials of the department.
In a letter dated February 12, 2025, the bank’s chief operating officer Felino H. Esquivas Jr urged DepEd Undersecretary for Finance Annalyn M. Sevilla to release the funds within five (5 days).
The amount includes ₱734.57 million collected from the public-school teachers between September 2019 and April 2022, and an additional ₱760.6 million from May to November 2022. Both are under the department’s Automatic Payroll Deduction System.
Sevilla confirmed the initial amount in a May 2022 letter but has yet to remit the funds, according to ARB. Thus, the bank is warning that failure to comply would result in complaints being filed before the Ombudsman and the Civil Service Commission against Sevilla and other DepEd officials.
The Bangko Sentral ng Pilipinas (BSP) prohibited ARB from continuing operations in November 2019 and directed the Philippine Insurance Corp (PDIC) to proceed with a takeover and liquidation of the lender.
In September 2020, the Court of Appeals ruled that the bank’s closure was “unwarranted as it is not based on the grounds provided by law.” The Supreme Court has also upheld that ruling from the appellate court, noting that the closure was ‘unjust,’ and the bank’s operations must be restored.
