CAYETANO PADERANGA?S appointment as Neda director-general and socioeconomic planning secretary has drawn fire from two very prominent members of the business community?Roberto Romulo (former foreign secretary) and Vivian Yuchengco (stockbroker and former chair of the Philippine Stock Exchange or PSE).

It turns out that Romulo, when he first heard through the grapevine that Paderanga was the number one candidate, immediately communicated with the Search Committee his (Romulo?s) objections to the appointment, and the reasons for these objections. So did Yuchengco?through close relatives of President Aquino. Both were trying to keep their objections away from the public eye, presumably to avoid embarrassing the Aquino administration. Both were taking seriously ?competence plus integrity,? the avowed touchstone of the new administration.

Each, unbeknownst to the other, had had roughly similar experiences with Paderanga. Both had initially regarded him with the highest respect (Yuchengco had proposed him as independent director of the PSE) and had the greatest of faith in him. Both were disillusioned, and were instrumental in his being asked/forced to resign from his position as chief executive officer (CEO) of their respective companies?CIBI (Credit Information Bureau Inc.) where Romulo was board chair; and PSE, where Vivian was a member of the board. The circumstances of the resignations were kept quiet. For which reason, Romulo and Yuchengco thought they had an obligation to communicate to Aquino, through their own channels, their respective experiences.

Paderanga was appointed anyway. And Romulo perforce had to make public his objections to the appointment, announcing that he was prepared to go to the Commission on Appointments to register such objections, as a matter of public interest. In an e-mail, Romulo wrote, ?Unfortunately, the press found the Alvarez golf issue more sensational I guess. Yet in the case of Paderanga it is more clear-cut that he should not take on an office of public trust.?

According to Romulo, his main issue is ?violation of basic principles of governance.? To wit, apparently Paderanga denied both knowledge of and consent to his subordinate?s (the chief financial officer) non-remission of taxes for several years?which resulted in the company?s having to pay more than a million pesos in interest and penalties. According to Romulo, a CEO cannot just blame his CFO and say it is not his responsibility. (Apparently, Paderanga was made to resign precisely because of his command responsibility.)

There was also a question regarding Paderanga?s work ethic?that he was hardly in the office. And then there was the issue of his employing his brother-in-law as legal consultant at P90,000 a month without apprising the board of the relationship. Another issue had to do with declaring as current revenues amounts still to be realized in the future. (Paderanga is an accountant as well as an economist).

Romulo?s revelations were read by Yuchengco, who then decided to also make public her experience (at the PSE) with Paderanga. And that is how the public learned of the whole affair.

Yuchengco?s story is that she first got concerned when the PSE staff complained to her of Paderanga?s infrequent appearances at the office, assigning an assistant to do courier work?bringing to him papers for his signature. She then checked on his whereabouts, and that is when she found out that he was holding down three full-time CEO jobs?PSE president, CIBI president and president of the PNOC?s real estate company, PNOC Development and Management Corp. (PDMC). She brought the matter up with the board in executive session. Apparently, Paderanga?s explanation was not satisfactory (e.g., that his work as CIBI head required only about two hours a day from 5 p.m.-7 p.m.; and that he had already resigned from the PDMC; that being full-time did not mean sitting in his office from 9 a.m. to 5 p.m. From what I read of the minutes, some directors and the chair objected to the line of questioning of Yuchengco and her allies. In any event, he was asked for, and he tendered his resignation (giving as reason that he was being recalled by the UP), although he had only served something like four months of his contract. Yuchengco is very categorical: Paderanga has no integrity, and she will ask the PSE to formally write the Commission on Appointments detailing its experience with him.

Paderanga, who has been my long-time colleague in the UP School of Economics, has apologized to all of his colleagues for any embarrassment the controversy may have caused. But, in another lengthy conversation with me (as long as the one I had with Yuchengco and Romulo), he stated categorically that he has a clear conscience.

First, he said that his job as CEO of CIBI required a lot of marketing and lobbying work (he claimed some credit for the passage of the credit information law in its present form) outside the office; in the same manner that his job at the PSE required attending a lot of meetings?particularly of the Capital Market Development Council.

Second, he swore that he really did not know that his CFO was not remitting the proper taxes (VAT, withholding, etc.), but that he accepted responsibility for it. (Well, actually, the board asked him to resign for this.)

Third, he was as categorical as Yuchengco when he stated that the PSE board chair knew that he was the CEO of CIBI. He made no attempt to hide it. And that he already resigned from PDMC, but was a holdover because there was no replacement.

The Commission on Appointments will have its work cut out for it.