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Phantom Paychecks, Vanishing Justice: The BSP’s Ghost Employee Betrayal

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Louis ‘Barok’ Biraogo

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Phantom Paychecks, Vanishing Justice: The BSP’s Ghost Employee Betrayal

By Louis ‘Barok‘ C. Biraogo — July 18, 2025

NOTHING screams ‘justice’ like scandal-ridden officials vanishing into retirement—golden parachutes first, accountability never. The Bangko Sentral ng Pilipinas (BSP) ghost employee scandal, where Monetary Board members V. Bruce Tolentino and Anita Linda Aquino resigned in 2023 after revelations of salaried staff who never clocked in, exposes a festering wound in the Marcos administration’s anti-corruption rhetoric. Malacañang’s limp handoff to the Ombudsman, cloaked in platitudes about a “clean” government, reeks of political sidestepping. This isn’t just bureaucratic rot; it’s a betrayal that robs taxpayers and undermines the nation’s financial bedrock. Let’s slice through the haze with legal precision, moral fury, and a demand for justice that cuts deep.

Legal Autopsy: Crimes Begging for Cuffs

The BSP scandal screams for prosecution under Philippine law, yet Malacañang’s inertia suggests a fear of drawing blood. Two statutes demand accountability:

  • Republic Act 3019, Section 3(e) (Anti-Graft and Corrupt Practices Act) bans public officials from causing “undue injury” to the government or granting “unwarranted benefits” through bad faith or gross negligence. Paying ghost employees—salaries for no work—is a textbook violation. The Supreme Court in Cabalit v. COA (G.R. No. 180236, 2012) laid it bare: “Handlers of public funds must bear the highest responsibility.” Tolentino and Aquino, as Monetary Board overseers, either knew of the scheme (complicity) or missed it entirely (negligence). Either way, RA 3019 calls for charges.
  • Article 217, Revised Penal Code (Malversation of Public Funds) nails public officers who misappropriate funds or allow others to do so. Ghost employee salaries—public money down the drain—fit the bill. The BSP’s own probe pinned four employees and two supervisors, yet the trail mysteriously stops short of the top. Why the kid gloves?

Malacañang’s claim that administrative cases are “moot” post-resignation is a legal sleight-of-hand. The Supreme Court in Office of the Ombudsman v. Reyes (G.R. No. 170512, 2017) is crystal clear: resignation doesn’t erase criminal liability. The Ombudsman, empowered by Section 15, RA 6770, must act—or admit it’s folding. Is it fighting, or just stalling? The public deserves more than bureaucratic shrugs.

Moral Decay and Economic Bloodletting

The ethical stench is suffocating. BSP Governor Eli Remolona Jr.’s “flabbergasted” reaction (Philstar.com, June 11, 2025) only highlights the hypocrisy: the central bank, guardian of the nation’s financial integrity, was caught fleecing itself. Monetary Board members aren’t decorative; they’re fiduciaries of public trust. Their failure—negligent or complicit—betrays the institution they swore to protect.

The socioeconomic toll is devastating, especially for the poor. Assume the ghost employees drained ₱4.2 million (a conservative estimate from similar cases). That’s 84,000 kilos of rice at ₱50 per kilo—enough to feed 8,400 families of five for a month, per Philippine Statistics Authority poverty data. While Malacañang dithers, those funds are gone, stolen from the hungriest Filipinos.

Worse, the BSP’s battered credibility risks macroeconomic chaos. A central bank tainted by corruption can spook investors, fueling inflation—a regressive tax that crushes the 26% of Filipinos below the poverty line (PSA, 2023). This isn’t just a scandal; it’s a structural gut-punch to the vulnerable.

Palace’s Toothless Posturing: Dodging the Fight

Malacañang’s response—vague promises to “study” charges and a referral to the Ombudsman—lacks fangs (Philstar.com, July 16, 2025). Claire Castro’s line about a “clean administration” feels like a script from a bad PR playbook when no charges have been filed a year after the scandal broke. Deferring to the Ombudsman, while procedurally correct, smells like a dodge to avoid political fallout. Tolentino and Aquino, Duterte-era appointees, are hot potatoes—does Marcos Jr. fear the backlash of prosecuting them?

Compare this to the administration’s swift moves in other controversies, like the ₱1.4-billion OWWA land deal purge. Why the double standard? If Marcos Jr. means business on accountability, why no public push for Ombudsman action or BSP transparency? This isn’t leadership; it’s sweeping dirt under the rug.

Slaying the Ghosts: A Blueprint for Justice

This scandal demands action, not excuses. Here’s how to exorcise the rot:

  • Ombudsman, Unleash the Hounds: Issue arrest warrants now. Section 15, RA 6770 gives you the power—use it. If evidence points to negligence or complicity, charge Tolentino and Aquino under RA 3019 and Article 217. Hesitation signals corruption’s victory.
  • BSP, Lock Down the Vault: Implement blockchain payroll audits—transparent, tamper-proof, no more ghosts. The BSP’s “post-incident review” (PNA, June 4, 2024) is a Band-Aid; systemic overhaul is the cure.
  • Public, Shine the Spotlight: Flood Malacañang with FOIA requests. Demand the BSP’s full investigation report and the Ombudsman’s progress. Transparency is corruption’s kryptonite.

The Palace’s Broom: Sweeping Scandals, Not Solutions

If “clean governance” means letting resignations bury crimes, then Malacañang’s broom is just rearranging filth. The BSP ghost employee scandal isn’t a blemish on the central bank—it’s a litmus test for Marcos Jr.’s anti-corruption promises. The poor, crushed by stolen funds and rising prices, are watching. So are we. Will justice materialize, or vanish like a ghost?

Key Citations

Disclaimer: This is legal jazz, not gospel. It’s all about interpretation, not absolutes. So, listen closely, but don’t take it as the final word.

Louis ‘Barok‘ C. Biraogo

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