The Aquino Cabinet

In presenting his Cabinet choices to the media last Tuesday, President Aquino described them as “the best for the posts” he is asking them to fill.

The lineup has been met with mixed reviews – which are to be expected considering the number of posts to be filled and the many groups seeking to put in their two cents.

One question raised concerns the president’s decision to recycle former Cabinet members of past administrations when there are so many who are qualified in this country of 94 million. Change was a key part of Aquino’s campaign platform and message. His appointment of old hands and insiders in government would seem to beg the question whether they would be willing and able to change how government is run.

Another point raised – this one coming from the younger generations — is why the president did not opt for a generational makeover of the Cabinet. A lineup of fresh, young faces would mirror his own generation and reflect the challenges and concerns of a new time. 

But I can see the reasoning that led our new president to his decision. He sought a balance of new and old personages in his official family. The experienced people in his administration – men and women who already know the ropes – can provide guidance to the newer members who will be serving in government for the first time.

Along these lines, the nomination of corporate executive and former DPWH Secretary Jose de Jesus as the new DOTC Secretary is certainly a plus. He brings to the post the weight of distinguished service in both the public and private sectors as well as integrity beyond reproach.

The same goes for Cesar Purisima at finance, Florencio Abad at budget, and Leila de Lima at justice. 

Other veteran appointments, however, have been questioned. I won’t comment on the retention of my first cousin Sec. Alberto Romulo at foreign affairs because of my bias. But I can speak of one nomination that I believe is a mistake, and will be challenged during the confirmation process.

Paderanga at NEDA questioned

I refer to Cayetano Paderanga’s nomination as head of the National Economic Development Authority (NEDA). His assignment to this sensitive post is being questioned in the business community because of his dubious record in the private sector.

Heading the NEDA requires effective oversight, if not control, over a key agency of government. As NEDA chief, Paderanga will be the nation’s economic planning secretary. As such, he will shape and oversee the national economic development plan over the next six years, and determine for good or ill the economic fortunes of the nation.

Sadly, from my own personal knowledge of the man and his capacity for executive leadership, Paderanga falls short. He was CEO of the CIBI Information, Inc. (CIBI) for nine years, coinciding with the time when I was chairman of the company. In an internal review of the tax liabilities of the company for the years 2004, 2005 and 2006 (other years were excluded because prescription had set in) the auditors discovered that the company failed to remit to the BIR the amount of P2,694,494.25 in value added tax (VAT), expanded withholding tax (EWT) and withholding tax compensation (WTC). This resulted in the company having to spend, among others, P1,304,801.78 by way of 20 percent interest.

As CEO, Paderanga’s failure to remit to the BIR the proper taxes is a criminal offense under Title X, Chapter II, Sec 255 and 256 of the Tax Code, both on the part of the officers of CIBI responsible for the failure and of CIBI itself.

Taking the criminal law lightly is just one of several transgressions and omissions during Paderanga’s watch at CIBI. He also appointed his brother-in-law as legal consultant at a salary of P90,000 per month, without disclosing to the board their relationship. When we questioned the performance of the lawyer, his only response was to volunteer that he would personally pay for his salary. Even then, he did not disclose his relationship. What I have described are just examples. The list of transgressions in governance, accounting rules and management is too long for this column to cover. 

It suffices to say that CIBI under Paderanga’s leadership and management incurred losses year after year. In stark contrast, within one year after he was asked to resign by the board, the new management was able to turn a profit for the company.

The point then is this: If Paderanga was wanting as a CEO and did not comply with basic tenets of openness and transparency in a company like CIBI, how can we entrust the NEDA to him? With honest governance as a major emphasis of the Aquino administration, he is clearly a poor fit as planning secretary.

At the appropriate time and forum, I am confident that issues and concerns concerning the fitness of Paderanga will surface for such an important office. On my part, if invited, I am prepared to appear before the Commission on Appointments.

Promise of Cabinet effectiveness

Looking at the bigger picture, however, I will say that President Aquino’s Cabinet is generally impressive in terms of the nominees’ credentials and their varied backgrounds. They haven’t been picked from just one club, and there was an apparent effort to recognize areas of specialization and expertise.

Likewise, I am also glad to see that the new commander-in-chief will have a more “civilian” administration, as compared to that of President Arroyo who relied a lot on Cabinet members with military and police backgrounds. Except for Voltaire Gazmin at the defense department, all the nominees are civilians.

We can only hope that the vetting process for the Aquino nominees was thorough enough to ensure them of quick confirmation by Congress. Speedy confirmations will allow President Aquino’s team to hit the ground running and begin addressing the many problems facing the country.