BSP: Monetary Board unfazed on ‘ghost employees’ scandal

📷 Fintech News Philippines

The Bangko Sentral ng Pilipinas said the incident involving four ghost employees on the staff of certain Monetary Board members and two supervisors “appear unprecedented.”

BSP made the remarks after a scandal involving ghost employees, with six people allegedly connected to two MB members, caused widespread alarm.

The two MB members accused of supporting the ghost employees are Duterte appointees Anita Linda R. Aquino and Bruce Tolentino. 

In a statement to business reporters on Tuesday, BSP said the seven-member MB can still do its usual operations amid a “four-member” quorum.

As a cornerstone of the Philippine financial system, the BSP has pledged to conduct a thorough investigation into the issue and reaffirmed its dedication to transparency and ethical practices.

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

“The Monetary Board has functioned as normal. 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,” it also said. 

The BSP stated that it identified the four employees and their two “immediate supervisors” in January following an investigation by its Office of the General Counsel.

According to the central bank, four of the employees and one “direct supervisor” named in the General Counsel’s report resigned some time between February and March this year.

However, the BSP mentioned that administrative disciplinary cases were filed against them before their resignations.

BSP also mentioned that administrative disciplinary proceedings are ongoing, hence further information about the ghost employees remains confidential.

Meanwhile,  former BSP governor Benjamin Diokno said the central bank remains free from any executive intervention.

Diokno, who acted as the BSP chief from March 4, 2019 to June 30, 2022, said the Central Bank was never politicized and especially not during his term.

“I strongly object to the allegation that the BSP was ‘politicized’ during my watch. I’m proud of what I did as BSP governor during the unprecedented COVID-19 pandemic,” Diokno said.

“During my watch as BSP governor, President Rodrigo Duterte never called me to influence monetary policy. It was never politicized,” he said. (TCSP)