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DOUBLE-COMPENSATION RACKET AT GMN

Global MSUans Network
MEEI
LANDBANK! Mindanao Economic and
Environmental Initiatives
Written by REPORTORIAL TEAM
WEDNESDAY, 04 NOVEMBER 2009

SHAMELESS!
While millions of Filipinos are hungry and have nothing for their noche buena, particularly the victims of super typhoons “Ondoy” and
“Pepeng,” officials of the Land Bank of the Philippines led by its chairman, Finance Secretary Margarito Teves, and its president and CEO
Gilda E. Pico look very greedy.
They have been feasting on super fat salaries, allowances and benefits they receive get without conscience.
Aside from their salaries ranging from P130,000 to P400,000 a month and benefits, bonuses and allowances they get from the
Landbank, these officials still showed their extreme greed by receiving equally-big benefits, bonuses during Christmas holidays from
subsidiary corporations of this official depository of the government.
These “super greed” was caught by the Commission on Audit (COA), which estimated the double compensation and excessive bonuses
during Christmas holidays, amounting to P8.979 million.
The huge amount includes Christmas raffle and year-end gift package, Christmas representation, business development expense,
representation and entertainment expense, and performance incentive benefit.
These were disallowed by COA, which revealed that LBP officers who are likewise board members of LBP subsidiaries have been
receiving double compensation.
The COA said that these officers received the same benefits from LBP, to which they hold permanent plantilla positions.
In citing the violation, COA cited Section 8, Article IX-B (Civil Service Commission ) of the 1987 Constitution, which states: “No elective
or appointive officer or employee shall receive additional, double or indirect compensation, unless specifically authorized by law.”
The Department of Budget and Management, in its Circular Letter 2003-10 dated October 17, 2003 on the Prohibition on the Grant of
Additional Bonuses in any form provides that:
“2.1 Unless authorized by law or by the President, the grant of additional bonus in the form of cash, groceries, gift certificates and other
goods to officials and employees is strictly prohibited.”
Among the LBP subsidiaries involved in double-compensation racket as cited in the COA audit findings are LBP Insurance Brokerage Inc.
(LIBI), LB Realty Development Corporation (LBRDC), LANDBANK Countryside Development Foundation Inc (LCDFI), Masaganang
Sakahan, Inc. (MSI).
According to the LBP website, the LBP officers who are also board members and officers of the subsidiaries are as follows:
LBP Leasing Corporation - Board of Directors: Gilda E. Pico – Chairperson; Cecilia C. Borromeo – director; Julio D. Climaco, Jr. –
member; Rodrigo B. Supeña – member; Albert C. Balingit - member (likewise board of director, Land Bank of the Philippines; Executive
Committee: Alfonso B. Cruz, Jr. – member; Cecilia C. Borromeo – member; Corporate Officer: Felix L. Manlangit - corporate secretary.
LBRDC – Board of Directors: Gilda E. Pico – Chairperson; George J. Regalado - Vice Chairman (also LBP member of the board);
Carlos T. Castro – Member; Alfonso B Cruz, Jr. – Member; Atty. Jesus F. Diaz – Member; Conrado B. Roxas – Member; Dante R. Tinga,
Jr. – Member; Executive Committee: George J. Regalado – Chairman; Atty. Jesus F. Diaz – Member; Carlos T. Castro – Member;
Corporate Officers: Carlos T. Castro - President & Gen. Manager; Atty. Manuel C. Piczon - Corporate Secretary; Emerita E. Olayvar -
Corporate Treasurer
LCDFI – Board of Directors: Margarito Teves – Chairman; trustees: Gilda E. Pico, Cresencio R. Selispara, Carmelita M. Hain;
Wilhelmino G. Agregado. Antonio T. Hernandez, Raymundo A. Dionisio, Omar T. Salvo; Executive Committee: Antonio T. Hernandez,
Raymundo A. Dionisio; Current Officers: Iluminada Cabigas, president; Erlinda G. Carolina-Ramos, Executive Director; Miguel M.
Gonzalez, Corporate Secretary; Rosario B. Belmonte, Corporate Treasurer; Felix L. Manlangit, Assistant Corporate Secretary.
MSI Board of Directors: Gilda E. Pico – Chairperson; Atty. Jesus F. Diaz - Vice Chairman; Simeona S. Guevarra – Treasurer; Antonio
T. Hernandez – Member; Wilfredo C. Maldia – Member; Executive Committee: Atty. Jesus F. Diaz – Chairman; Simeona S. Guevarra –
Treasurer; Antonio T. Hernandez – Member; Corporate Officers: Gilda E. Pico – Chairperson; Atty. Jesus F. Diaz - Vice Chairman;
Simeona S. Guevarra – Treasurer; Atty. Miguel M. Gonzales – Corporate Secretary and Legal Counsel; Atty. Danilo B. Beramo – Asst.
Corporate Secretary and Legal Counsel; Mr. Gabriel M. Jayme – General Manager.
LIBI Board of Directors: Gilda Pico, chairperson; Alfonso B. Cruz, Jr., Vice-Chairman of the Board; Jesus F. Diaz, excom chairman,
president; Andres Sarmiento, director; Corporate Officers: Reynauld Villafuerte, corporate secretary; Jennifer Tantan, chairperson,
Investment Committee; Conrado Roxas, internal auditor.
Since 2001, 2004 and 2008, the COA Legal and Adjudication Office-Corporate issued several notices of disallowance to the subsidiaries.
The same office found out that these agencies did not take any action to recover or collect such huge amount.
Moreover, the state audit agency also discovered that in 2008 LIBI incurred expenditures more than its approved budget with negative
variance totaling P11.061 million; payment of performance incentive program worth P2.568 million to employees, officers, board of
directors did not conform with the provisions of Memorandum Order No. 20 and Administrative Order No. 103; understatement of
P48.200 million, accounts receivable-trade and accounts payable-insurance companies; understating P7.754 million drawn during the
year, were unreleased as of December 31, 2008, but were already recognized as credits to Cash in Bank; aging schedule of Due to
Principal account does not tally with its subsidiary ledger and general ledger, showing a difference of P10.708 million.
From 2000 to 2006, Margarito Teves, was chief of LBP and chairperson of all the LBP subsidiaries, which the COA found to have
committed various anomalies.
He likewise played a key role in the release of P3 billion ghost pig loan to Quedancor, two months before the 2004 presidential bid of
GMA vs FPJ. Pico then was senior executive vice president.
As LBP top honcho in 2005, an estimated P26 billion tax collection deposited in LBP was missing. A small time LBP branch manager Art
San Juan and other small participants were indicted recently by the Department of Justice. How about the big fish?
As DOF chief, Teves missed tax collection targets by hundreds of billions.
With Teves’ dubious performance in LBP, does he still have the moral backbone to lead in the government’s tax drive?
Could it be that the supposed taxes to be remitted to the national treasury are diverted to another pocket?
Will he follow the example given by BIR Commissioner (BIR) Commissioner Sixto Esquivias IV who resigned following his failure to meet
the targeted tax collections?

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