Salvador Panelo: 'Benjamin Diokno a man of integrity'

MANILA, Philippines — Despite controversies hounding new Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno, Malacañang said it is confident he would be able to hurdle the Commission on Appointments (CA), as allegations against him were “not true.”

“That’s their call,” presidential spokesman Salvador Panelo told reporters yesterday, referring to the CA. “We have a good man there, we have an experienced man, we have an expert man, we have a man of integrity.”

Asked whether he thought the allegations against Diokno would derail the latter’s confirmation by the CA, Panelo replied, “I don’t think so.”

Article II of the New Central Bank Act requires a BSP governor to undergo CA confirmation.

Budget Undersecretary Janet Abuel has been named officer-in-charge of the Department of Budget and Management, according to a text message from Finance Secretary Carlos Dominguez III.

Diokno said he recommended Abuel for the post of DBM OIC. Palace sources said Government Service Insurance System chairman Rolando Macasaet is being eyed as the next budget chief.

A certified public accountant and lawyer, Abuel rose through the department ranks from budget and management analyst in 1996 to Director IV in 1999.

She served as regional director of the DBM Regional Office I for 10 years, until her promotion to assistant secretary in 2012. On March 19, 2015, she was promoted to undersecretary.

Diokno faced allegations of corruption and conflict of interest when he was budget secretary but his supporters dismissed these as “political persecution.”

House appropriations committee chairman Ronaldo Andaya Jr. had accused Diokno of stealthily inserting some P75 billion in the budget program for this year – particularly in the budget of the public works department – without the approval of the President.

Andaya also alleged that Diokno’s in-laws got more than P81 million in commissions from government projects in Sorsogon last year.

Diokno denied all the accusations but skipped a House hearing on budget issues after his first attendance.

Diokno’s appointment was announced at the 35th Cabinet meeting last Monday.

Diokno succeeded the late BSP chief Nestor Espenilla Jr., who died of tongue cancer last Feb. 24. His appointment came weeks after a law expanding BSP’s powers and raising its capitalization was signed.

“We thank Secretary Diokno for his services to the nation and to this administration as Secretary of Budget and Management, a position he similarly held under the Estrada presidency,” Panelo said.

“We wish Sec. Diokno all the best in his endeavors as the new chief of the country’s central monetary authority. With him at the helm of the Bangko Sentral ng Pilipinas, our banking institutions are in good and competent hands,” he added.

Diokno was undersecretary for budget operations during the administration of the late president Corazon Aquino. He was budget secretary during the Estrada administration. It was during his stint under the Estrada presidency when he introduced reforms including the adoption of information and communications technology in the government procurement system. 

President Duterte named him to the top DBM post in 2016. Panelo said the next budget chief should have competence, integrity and expertise. 

Asked to react to rumors that Speaker and former president Gloria Macapagal-Arroyo would be given a Cabinet post, Panelo replied: “Gloria Arroyo? I don’t think she will want to be in another government position after her stint as Speaker. She says so herself, I believe her.”

All praises

DOF’s Dominguez and the banking community, meanwhile, have voiced approval of Diokno’s appointment.

“Benjamin Diokno brings together that elusive combination of seasoned technocrat and professional manager. He knows the inner workings of government and industry, and has repeatedly demonstrated the ability to run a large, complex organization with intellectual leadership and a steady hand,” Dominguez said in a text message to reporters.

“All of these will contribute to his successful stewardship of the Bangko Sentral ng Pilipinas as its next governor and chairman of the Monetary Board,” he said. “His competence is unquestionable, owing to his deep expertise in macroeconomics and extensive senior management experience in government and the private sector,” Dominguez added.

Dominguez revealed that Abuel will take over Diokno’s post in an acting capacity until a new budget secretary is appointed.

The DBM also congratulated Diokno for his appointment as central bank chief.

“With Secretary Diokno at its helm, we are confident that the BSP and the Philippine economy will remain in good hands,” the DBM said in a statement.

“We wish you the best in your new role as BSP governor, and thank you for your meaningful service,” it added.

“Under Secretary Diokno’s watch, underspending in 2016 and 2017 went down to just 3.6 percent and 2.9 percent, respectively. In 2018, Secretary Diokno managed to reverse 12 years of underspending as actual expenditures exceeded the program by one percent,” DBM said.

It was also under Diokno’s watch that the Philippines emerged on top in Asia and 17th in the world in the 2017 Open Budget Survey.

The outgoing DBM chief also pushed for a budget reform agenda amidst political resistance. He initiated the shift towards cash-based budgeting to ensure the prompt delivery of public services and completion of projects.

Sens. Francis Escudero and Panfilo Lacson also lauded Diokno’s appointment to the top BSP post.

“The supervision of banks is only one of his functions, which the BSP family is more than capable to perform and assist him with, given the strong regulatory framework that has been set through the years through legislation and previous monetary board issuances,” Escudero, chairman of the Senate committee on banks, financial institutions and currencies, said.

He stressed the primary function of the BSP governor through the Monetary Board (MB) is to set monetary policy and supervise the financial system. The new BSP is “very well adept with” such function, Escudero said.

He said the appointment will “ensure the stability, continuity and predictability of the country’s fiscal policies and gains.”

The appointment did not appear to be a result of lobbying by some leaders of the House of Representatives for the ouster of Diokno as budget chief as the BSP post could be considered a promotion of sorts, as he would also chair the MB and serve beyond the term of President Duterte.

Lacson said Diokno’s “long, reputable service” in the budget department and in academe should make up for his lack of banking experience.

“Knowing his long, reputable public service, both in the budget department and in academe where he served with competence and integrity, he is still a welcome appointment as BSP governor,” Lacson said. – With Paolo Romero, Lawrence Agcaoili, Alexis Romero