We would like to clarify legal issues that have been raised in connection with the appointment of Governor Rafael B. Buenaventura as Governor of the Bangko Sentral ng Pilipinas namely: 1) whether his appointment needs confirmation by the Commission on Appointments; and (2) whether it violated the one-year prohibition period under the BSP Charter considering that he assumed the position of BSP Governor on July 6, 1999 after leaving PCIBank as its President and Chief Executive Officer on June 30, 1999.
On the first issue, based on our reading of the law and jurisprudence, the appointment of Governor Buenaventura, like the appointment of his predecessor, Governor Gabriel C. Singson, did not need confirmation of the Commission on Appointments.
On the second issue, the relevant provision is Section 9 of Republic Act 7653 which states that "no person shall be a member of the Monetary Board if he has been connected directly with any multilateral banking or financial institution or has a substantial interest in any private bank in the Philippines within one year prior to his appointment". PCIBank was never a multilateral banking or financial institution and, per our records, he did not have substantial interest in PCIBank.
Note: Press Statement of Mr. Juan de Zuñiga, Jr., General Counsel of the Bangko Sentral ng Pilipinas