MR. CHARLES B.

BALACHAWE
Chief Executive Officer
Lagawe Multi-purpose Development Cooperative (LMDC)
Lagawe, Ifugao

WITH ALL DUE RESPECT TO THE HONORABLE OFFICE, the undersigned

most respectfully submits his answer and for this purpose avers that:
1. I am of legal age, married, and a resident of Pob. West, Lagawe, Ifugao;

2. I am currently employed as a Loan Analyst under the Loans Department of the

Lagawe Multi-purpose Development Cooperative (LMDC);

3. A Dep-Ed Loan Application Form was accomplished and submitted by a certain

Lourdes Binwag Bitog on September 30, 2017. The form was received on the
same day it was submitted. As Loan Analyst, it is my duty and responsibility to
ensure the strict implementation of loan policies in coordination with the
Loan Officer for better services to members. To let an applicant sign the
Insurance Contract, is inconsistent with my job description as nothing was
indicated in my Duties and Responsibilities as a Loan Analyst to let the applicant
sign an Insurance Contract. Attached hereto is a copy of my Duties and
Responsiblities as Lan Analyst marked as Annex “A” to form part of the records
hereof;

4. The loan application form submitted by Ms. Lourdes B. Bitog, together with the
supporting documents, will be reviewed by the undersigned. After careful
review of the loan application, the undersigned is of the opinion that it passed
the loan review process, hence, deemed qualified for approval pursuant to
Section 13. Elements of Credit Investigation of the LMDC Credit Management
Policy or otherwise known as the five (5) C’s of credit;

5. Under paragraph A and E, Section 17. Loan Application Stage of the LMDC
Credit Management Policy, to wit:

a. “Loan applications are submitted to the Loan Officer or Loan Analyst

or Field loan personnel together with the supporting
documents that include among others, identification paper,
member’s passbook as well as photocopies of ownership
documents of collateral offered. (Emphasis supplied)
b. Xxx
c. Xxx
d. Xxx
e. “ All loan applications, including DOSRI loan application shall undergo
loan processes, and shall include all documentation required as
follows:
i. Application Form
ii. Amortization Schedule
iii. Sources of Income and Expenditures
iv. Statement of Asset and Liabilities
v. Self-assessment Form” (Emphasis supplied)
 It is very clear in the provisions of LMDC Credit Management Policy that no
Insurance Policy was included as a requirement or a supporting document of
the Loan Application before it will be granted. Hence, it is not my job during
the Loan Application Stage to let the applicant sign the insurance.
It is worthy to note that I transmitted the Loan Application of Ms. Lourdes B.
Bitog to the Loan Officer that it passed the review based on the five (5) C’s of
credit and all the documentation aforementioned;
6. Further, the submission of other pertinent documents is during the Loan
Release, after the approval of the loan, found under paragraph 3, Section 21
of the LMDC Credit Management Policy, to wit:

“3. The Cashier disburses the loan proceeds to the borrower upon the
latter’s signing of the voucher and amortization schedule as well as
promissory note and other pertinent documents.” (Emphasis
supplied)
Thus, an Insurance Policy will only be signed by the applicant after the Loan
Application be approved and released. There is no way an Insurance Contract
be signed simultaneously with the Application Form since the Insurance
Contract will only be presented for signing by the applicant after the loan
application has been approved and released;
7. After evaluating the application of Ms. Lourdes, I even handed her a copy of
the Insurance Policy, in advance, for her to read the terms and conditions of
the insurance. She then starts reading the content of the Insurance Policy.
Suddenly, she told me “Nape ta signa’h yaden wahtu’y content na te tu an I
have not been treated nor been told to have cancer yaden agpaysu te an waday
cancer uh ten munkem-kemoha’ pay.” With her comment, she is aware that
she is not qualified for the Insurance Contract and it will be considered void
and not to have taken effect even if she signed it. As proof, she neither sign
nor fill up the Insurance Contract to the cooperative.

Be it a note that concealment, fraud or misrepresentation of the material facts

in an insurance contract will render the contract void and no effect;

8. I am executing this document to attest that I performed my job in accordance

to my duties and responsibilities as a Loan Analyst in order to prevent
discontentment of clients and provide better services to clients.
WHEREFORE, premises considered, it is most respectfully prayed that the
undersigned be exonerated of the allegations against him.
Respectfully submitted this ___ day of _________ 2018.

CLARENCE D. LUMIDAO
Loan Analyst
LMDC