MB awaits Palace word on gov’t representative
The Bangko Sentral ng Pilipinas (BSP) is awaiting word from Malacañang as to who will be the government representative in the seven-member Monetary Board.
BSP Deputy Governor Eduardo Bobier said the government representative in the policy makingbody of the BSP is not necessarily the Secretary of the Department of Finance (DOF).
“Just to be clear, the provision says representative from the government. Now, there is an appointed Secretary of Finance. But, me personally, I’m not sure if the Secretary of Finance will sit as a member of the Monetary Board because the provision says representative from the government,” Bobier told reporters.
Aside from BSP Governor Eli Remolona Jr. who chairs the seven-member Monetary Board, other members are former finance secretary Benjamin Diokno, former finance undersecretary Romeo Bernardo, former agriculture undersecretary Bruce Tolentino, former national treasurer Rosalia de Leon and Anita Linda Aquino.
President Marcos recently appointed former House deputy speaker Ralph Recto as Finance Secretary replacing Diokno who was appointed to a six-year term as a private sector representative in the Monetary Board.
BSP senior assistant governor and general counsel Elmore Capule said Republic Act 7653 or the New Central Bank Act, as amended, states that one of the government sector members of the Monetary Board must also be a member of the Cabinet designated by the President.
The law establishes certain qualifications for the members of the Monetary Board and also prohibits members from holding certain positions with other governmental agencies and private institutions that may give rise to conflicts of interest.
With the exception of the members of the Cabinet, the BSP governor and the other members of the Monetary Board serve terms of six years and may only be removed for cause.
BSP Deputy Governor Francisco Dakila Jr. also said that there have been instances wherein the government representative in the Monetary Board came from other agencies such as the National Economic and Development Authority (NEDA) or the Department of Trade and Industry (DTI).
“Just to cite past experience, there were times when the government representative member in the Monetary Board was NEDA secretary and there were times DTI was representing the government. So it is not necessarily or it is not automatic, it depends who is appointed,” Dakila stressed.
In the past three administrations, finance secretaries were appointed as government representatives in the Monetary Board. These were Cesar Purisima, Carlos Dominguez and Diokno.
Prior to this, former NEDA secretary Romulo Neri served as the government representative in the policy-making body of the central bank.
Likewise, former trade secretary Peter Favila also sat in the seven-member Monetary Board as government representative and served another fresh six-year term as a private sector representative.
A source said Presidential Adviser on Investment and Economic Affairs Frederick Go, who was former president and CEO of Gokongwei-led Robinsons Land Corp., could also be appointed to the seven-member Monetary Board since he has a rank of a Cabinet secretary.