DBP president faces graft complaint over alleged unauthorized P1.1-M monthly salary

The president and CEO of state-run Development Bank of the Philippines (DBP), Michael De Jesus, is facing a graft complaint filed by a private citizen for allegedly receiving an illegal and unauthorized monthly salary.

The complaint, lodged by Romeo Mendoza before the Office of the Ombudsman on Sept. 11, claimed that De Jesus' monthly salary of P1.1 million far exceeds the maximum amount allowed by law for government-owned and -controlled corporations (GOCCs).

According to Mendoza, De Jesus’ salary is nearly double the legally mandated monthly compensation cap for his position, which should be P588,458, as mandated Executive Order No. 150 Series of 2021, issued by then-President Duterte.

The complaint is based on the Commission on Audit's report on salaries and allowances for 2023, which confirmed the DBP chief’s hefty pay.

Michael De Jesus

A complaint filed with the Ombudsman is asking for the suspension of the DBP president for allegedly receiving a salary that's higher than what the law allows.

In addition to his salary, Mendoza also cited the bank’s relatively weak financial performance last year, noting that DBP did not remit any dividends to the national government for this period.

For 2023, DBP reported a net income of P5.9 billion, in sharp contrast with government-owned Land Bank of the Philippines' P40-billion net income.

The complainant noted that, despite Landbank showing much better financial performance, its president, Lynette Ortiz, makes only half of De Jesus’ monthly salary in compliance with the compensation guidelines set by law.

The complaint, which accuses De Jesus of violating the Anti-Graft and Corrupt Practices Act, also calls for his preventive suspension pending investigation.

Mendoza argued that De Jesus' continued stay in office could potentially influence the ongoing investigation.

In an interview with InsiderPH late Thursday, De Jesus confirmed that he was receiving a P1.1-million monthly salary, but said this was approved by the bank’s board before an order from the Governance Commission on GOCCs imposed the salary cap.

De Jesus said that his wage was kept at its previous level despite the new cap under the “no diminution of benefits” principle that prohibits employers from reducing the salaries of employees.

The DBP chief said the issues against him are being raised by at least one member of the bank’s board over policy differences in running the financial institution.