EDITORIAL - Spooked by ghosts

The Bangko Sentral ng Pilipinas has enjoyed a reputation as a stable, controversy-free institution – as it should, considering its critical role in ensuring the stability of the country’s banking and financial sector. Today, unfortunately, this stability is being rocked by the presence of ghosts – or more precisely, ghost employees – in the BSP’s highest policy-making body, the Monetary Board.

Two MB members are currently under fire for having four ghost employees in their payroll. The four, together with two “immediate supervisors,” were identified last January following a probe conducted by the BSP’s Office of the General Counsel. Between late February and March, the four along with a “direct supervisor” who were facing administrative disciplinary cases resigned from the MB.

BSP and MB members are the highest paid government officials, and their staff also reportedly enjoy hefty paychecks. The seven-member MB, which is chaired by the BSP governor, currently consists of Finance Secretary Ralph Recto, his predecessor Benjamin Diokno, former national treasurer Rosalia de Leon, Anita Linda Aquino, Romeo Bernardo and V. Bruce Tolentino.

The Monetary Board can function properly as long as there is a quorum of four, BSP officials have said amid the possible ouster of the two MB members. Obviously, the sooner this controversy is put to rest, the better for the stability of banking and finance in this country. Putting it to rest should include streamlining the rules that allowed the MB members to put ghost employees on the public payroll.

At the same time, the BSP should also review its rules on the hiring of relatives by MB and central bank officials, amid rumors that certain offices in the Bangko Sentral are becoming family-run. Such rumors, if untrue, must be convincingly squelched ASAP. And if true, the BSP must implement corrective measures.

It’s bad enough that the nation is now plagued with politics being turned into a family business. And just as in private enterprise, politicians want to keep their family business going forever, by hook or by crook. In too many areas, it’s often by crook.

With the BSP enjoying prestige and respect, its members are expected to be above the country’s dirty politics. They must set the example in professionalism, not only because they are the highest paid in government, but also because of their critical role in maintaining the country’s financial stability. Money is a scaredy commodity. The last thing the BSP should want is having ghosts spooking the monetary sector and the international community.

EDITORIAL - Spooked by ghosts

The Bangko Sentral ng Pilipinas has enjoyed a reputation as a stable, controversy-free institution – as it should, considering its critical role in ensuring the stability of the country’s banking and financial sector. Today, unfortunately, this stability is being rocked by the presence of ghosts – or more precisely, ghost employees – in the BSP’s highest policy-making body, the Monetary Board.

Two MB members are currently under fire for having four ghost employees in their payroll. The four, together with two “immediate supervisors,” were identified last January following a probe conducted by the BSP’s Office of the General Counsel. Between late February and March, the four along with a “direct supervisor” who were facing administrative disciplinary cases resigned from the MB.

BSP and MB members are the highest paid government officials, and their staff also reportedly enjoy hefty paychecks. The seven-member MB, which is chaired by the BSP governor, currently consists of Finance Secretary Ralph Recto, his predecessor Benjamin Diokno, former national treasurer Rosalia de Leon, Anita Linda Aquino, Romeo Bernardo and V. Bruce Tolentino.

The Monetary Board can function properly as long as there is a quorum of four, BSP officials have said amid the possible ouster of the two MB members. Obviously, the sooner this controversy is put to rest, the better for the stability of banking and finance in this country. Putting it to rest should include streamlining the rules that allowed the MB members to put ghost employees on the public payroll.

At the same time, the BSP should also review its rules on the hiring of relatives by MB and central bank officials, amid rumors that certain offices in the Bangko Sentral are becoming family-run. Such rumors, if untrue, must be convincingly squelched ASAP. And if true, the BSP must implement corrective measures.

It’s bad enough that the nation is now plagued with politics being turned into a family business. And just as in private enterprise, politicians want to keep their family business going forever, by hook or by crook. In too many areas, it’s often by crook.

With the BSP enjoying prestige and respect, its members are expected to be above the country’s dirty politics. They must set the example in professionalism, not only because they are the highest paid in government, but also because of their critical role in maintaining the country’s financial stability. Money is a scaredy commodity. The last thing the BSP should want is having ghosts spooking the monetary sector and the international community.