BAP urges government to respect tenure of BSP governor

The prestigious Bankers Association of the Philippines (BAP) has asked the Arroyo administration to respect the tenure of the Bangko Sentral ng Pilipinas (BSP) governor.

BAP president Placido Mapa said the term of office of the BSP governor must be accorded due respect as it enshrined in the Constitution.

"It is equally important that the international business community must perceive that the position is independent of the political arena," Mapa said during the Makati Business Club (MBC) meeting held yesterday.

He pointed out that the position had been kept sacred during the past three administrations, and that had worked to the advantage of the Philippine economy.

The BAP president said it is not important who the present governor is. What is important is that the position must be kept sacred.

The MBC had earlier taken a similar position on the issue of replacing BSP Governor Rafael Buenaventura in the light of a change in administration. According to the MBC, the position and its functions should be kept away from politics.

Meanwhile, BSP General Counsel Juan Zuñiga Jr. clarified legal issues that have been raised in connection with the appointment of Buenaventura as governor of the BSP namely: 1) whether his appointment needs confirmation by the Commission on Appointments; and (2) whether it violated the one-year prohibition period under the BSP Charter considering that he assumed the position of BSP governor on July 6, 1999 after leaving PCIBank as its President and Chief Executive Officer on June 30, 1999.

On the first issue, Zuñiga said the appointment of Governor Buenaventura, like the appointment of his predecessor, Governor Gabriel C. Singson, did not need confirmation of the Commission on Appointments.

On the second issue, the relevant provision is Section 9 of Republic Act 7653 which states that "no person shall be a member of the Monetary Board if he has been connected directly with any multilateral banking or financial institution or has a substantial interest in any private bank in the Philippines within one year prior to his appointment." PCIBank was never a multilateral banking or financial institution and, per our records, he did not have substantial interest in PCIBank, Zuñiga said.

Jose L. Cuisia Jr., president and chief executive officer of the Philippine American Life and General Insurance Co. (Philamlife) urged Buenaventura not to resign from the position if the reason is political.

"I am urging the BSP Governor to remain in his position. The international business community is watching and it would not augur well if they perceive that the position is as flimsy as the political changes in the country," Cuisia said.

Buenaventura who was appointed by deposed President Joseph Estrada is being prodded by the House of Representatives to resign. Among other things, Buenaventura is being accused of being partial to Estrada who was his classmate at the Ateneo de Manila University. Buenaventura is also accused of tipping off Estrada about the impending closure of Urban Bank thereby allowing the former to withdraw millions of pesos from his account a day before the bank declared a holiday. The accusations have been denied by Buenaventura.