Bunye given golden parachute

MANILA, Philippines – Press Secretary Ignacio Bunye’s latest appointment to the Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas, is a “golden parachute,” according to opposition Sen. Aquilino Pimentel Jr.

“Probably they see the end is near and so he has to land some place,” Pimentel told reporters at the Manila Hotel yesterday, apparently referring to the term of President Arroyo which ends in 2010.

Pimentel said Malacañang might have considered other circumstances in transferring Bunye to another post.

“Well, I think there are other circumstances that they looked into and from the side of Secretary Bunye. Maybe the end is near,” Pimentel said in Filipino.

“Golden parachute” is a clause in an executive’s employment contract specifying that he/she will receive large benefits in the event that the company is acquired and the executive’s employment is terminated. These benefits can take the form of severance pay, bonus, stock options, or a combination thereof, according to website InvestorWords.com.

One of the longest-serving Cabinet members of the Arroyo administration, Bunye was first to be affected by the Cabinet revamp.

Bunye announced on Sunday that effective June 22, 2008, he will be joining the Monetary Board with a fixed six-year term.

He said he will continue to discharge his duties as presidential spokesman until then.

He also announced that in the interim, he is also serving as Presidential Adviser on Political Affairs for Mrs. Arroyo, a post now held by Interior Secretary Ronaldo Puno in a concurrent capacity.

Bunye said he will announce his successor in the coming days.

Reports said among those eyed to replace Bunye are former presidential chief of staff Michael Defensor and former press undersecretary Michael Toledo.

Bunye said he wrote the President in October last year seeking to leave government and return to his career in banking.

According to the official, his banking career was cut short by the 1986 EDSA Revolution, which led to his appointment as Officer-in Charge of Muntinlupa by then President Corazon Aquino.

BSP chief welcomes Bunye appointment

Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr.  welcomed yesterday  the appointment of Bunye saying he brings “a different perspective to the Monetary Board.”

“Not only is he a public servant of long-standing, he is also a lawyer with experience in banking and finance,” Tetangco said. 

Bunye was selected from a list of candidates, including an undisclosed short-list submitted by the BSP to the Office of the President, which appoints all the members of the MB including the governor of the BSP.

As a member of the MB, Bunye will serve a fixed six-year term that can be renewed only once, should the incumbent president choose to do so. He would have to shed all his positions in government since members of the MB are required to be independent of political or business ties with vested interest groups.

Before he joined politics in l986, Bunye was a radio reporter for the Manila Times-owned dzMT and later became a reporter of the Daily Star.

A lawyer by profession, Bunye also worked for the Ayala Group of Companies as well as assistant vice president of the Ayala Investment and Development Corp. and the Bank of the Philippine Islands.

Bunye entered politics when former President Corazon Aquino took over power and he was designated officer-in-charge of the municipality of Muntinlupa. – With Des Ferriols