Tuesday, June 29, 2010

NEDA nominee is ethically challenged

(Reposted from Lamang Lupa)

It seems everyone wants to 'help' President Noynoy Aquino fulfill his promise to eradicate corruption and end poverty.  With the sheer number of applications and recommendations, I can imagine that the screening committee of the incoming administration must be swamped.  Of course, this situation isn't something that is hard to predict and there might be those who'll  try take advantage of the situation.
One of them might be a guy named Cayetano Dondon Paderanga Junior,  according to Lamang Lupa.

Here is his note on Facebook that I think those in the screening committee ought to consider.


Many in the business community are disturbed by the rumors that President-elect Noynoy Aquino is seriously considering the appointment of economist Cayetano "Dondon" PaderangaJr back as NEDA secretary general and economic planning secretary (a post he held from 1990 to 1992 under President Cory Aquino). They believe he is ethically challenged.

Paderanga, who was also a former member of the Monetary Board from 1993 to 1999, carries with him a very shabby and questionable record as a business executive and manager. If Noynoy names him for the NEDA post, there is bound to be a serious challenge of his appointment during the confirmation hearings by at least two companies whose operations were hurt by his irresponsible management.

The brief against Paderanga is shocking considering that is both an economist and an accountant. Among the shocking charges are:

1.When he was president of Credit Information Bueau(CIBI), the company did not pay taxes for at least four years -- from 2004 to 2007. These taxes consisted of: VAT, expanded withholding tax, and withholding tax on compensation. CIBI had to pay all unremitted taxas surcharge and penalties after he left in 2008.

2. He window-dressed the financials of the company to show an income when in fact it was incurring losses every year of operation under his watch. He did this by recognizing future income in the current periods and manufacturing bogus contracts to increase revenues.

3. He hired his brother-in-law as an officer of the company (legal consultant) at a cost of P90k per month, without informing the board. Brother-in-law hardly reported for work, causing office demoralization.

4. He did not pay rentals for office space starting January 2001 -- leaving all outstanding rentals to the parent company to absorb.

5. He charged CIBI huge management fees for a company of which he was also the president.

6. While president of CIBI, he also ran an economics consulting firm, IDEA, on the side. He diverted company computer hardware to the company and used IT personnel of CIBI for the consulting work.

7. Within one year from the time he left CIBI in 2008, the new management which took over was able to turn a profit for the company.

Paderanga's dismal record should not be allowed to disfigure the new Aquino government. He should be dropped from consideration at once.

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