BSP: Unprecedented Irregularities Cited

The Bangko Sentral ng Pilipinas, the government body in charge of assuring price stability, has cited as unprecedented the irregularities that were uncovered relative to the so-called ghost employees assigned to report to two members of the Monetary Board, the governing body of the central bank.

The two MB members, identified in various reports as Bruce Tolentino and Anita Linda Aquino, were both appointees of President Rodrigo Duterte, an issue that has led to speculations on political appointments.

The two MB members, identified in various reports as Bruce Tolentino and Anita Linda Aquino, were both appointees of President Rodrigo Duterte, an issue that has led to speculations on political appointments.

Former BSP Governor Ben Diokno, however, disputed the so-called political appointments, saying that the former President did not interfere in the MB's actions.

The Bangko Sentral shared the following information on the issue that has rocked the financial community, especially at a time of the depreciation in the value of the peso vis-a-vis the dollar and the projected MB action on interest rates.

It said that it seeks to clarify and respond to recent news reports on six employees on the staff of certain Monetary Board members.

We hope this clarifies, within the bounds of confidentiality and fairness due to ongoing proceedings, the steps the BSP has taken since first receiving reports on the issue, to ensure that any erring employee will be held accountable.

The irregularities appear unprecedented in an organization that upholds integrity and professionalism at all levels. The BSP remains committed to upholding that.

In October 2023, the Office of the General Counsel triggered an investigation after receiving credible information that several staffers in the offices of two MB members had not been reporting for work for extended periods but were nonetheless receiving their salaries.

In December, the Office of the General Counsel received an initial report of the investigation and instructed the investigating team to proceed with an in-depth investigation.

In January, the investigating team submitted the final investigation report, where four employees and their two immediate supervisors were identified. The Office of the General Counsel signed it.

From late February to early March, four of the employees and one direct supervisor implicated in the report tendered their resignation.

Administrative disciplinary cases were filed in March before the effectivity of their separation.

As BSP has stated since the first media reports on the issue on May 10, because the administrative disciplinary proceedings are ongoing, further information about them may be confidential.

The Monetary Board has functioned as normal. In response to speculation that vacancies that could affect the board’s operations may occur, the 7-member board can continue to perform most of its duties provided there is a 4-member quorum and the rest of its duties, such as granting emergency loans, with 5 members.

We are constrained from commenting further on the Monetary Board members because they are presidential appointees.