CAYETANO W.

PADERANGA’S RESPONSE TO THE POINTS RAISED ON HIS TENURE AT CREDIT

INFORMATION BUREAU, INC. (CIBI) 2001-2008

1. CIBI was hemorrhaging in large losses when I joined it in 2001. With business restructuring,
product/service enhancement and aggressive marketing, it began to turn around in 2003.
Financial window-dressing was not done to reflect this turn-around, otherwise, it would not
have been possible for CIBI to suddenly become profitable the year I resigned since the
“window-dressed” financials would have had to be adjusted first and losses would have had to
be reflected. The external auditors would be able to validate this assertion. Eight years would
seem a long time for the CIBI board to have kept me as president if there had been no
fundamental improvement in the financial condition of the company under my watch. I was
almost three years at NEDA under President Corazon Aquino and the response to my
designation for the second time seems to be generally positive. This is probably the correct
assessment of my fitness to go back to NEDA.

2. CIBI did not dodge tax payment in the case of non-remittance of taxes withheld for the Bureau
of the Internal Revenue. Tax liabilities were recognized and booked but the Vice President-
Finance, beginning 2004, without authority from me and without my knowledge did not
prioritize the remittance of these taxes to the BIR in favor of payment for other operating cash
requirements. Under the principle of command responsibility, I accepted my omission and
mistake and resigned my position.

3. My hiring of the legal consultant/my brother-in-law was an act approved by the board of
directors. Non-disclosure of the relationship was not plausible in view of the professional and
personal relationship of the legal consultant with some members of the board and executives of
CIBI. The consultant had very specific functions in personnel management work, labor laws and
contracts, liaison with the Department of Labor and Employment, following through on
pertinent bills in Congress to the credit information service. The length of stay of the legal
consultant in CIBI, attending board meetings to report on matters covered by his function would
deem it impossible for my relationship with him remaining undisclosed if such had been meant
which was not. And there was never a competence issue raised by the board.

4. IDEA is a non-profit, non-stock foundation providing research and consultancy services based at
the UP School of Economics. I receive no compensation from this foundation and its
engagement with CIBI pertained to the identified need by the CIBI marketing staff for the
enhancement of the services it provided its clients, specifically to include economic and industry
performance reports and forecast. This added service helped expand CIBI’s client base. The
computers used by IDEA in providing the service were acquired with payments advanced by CIBI
 for the work IDEA was to do under the engagement to accelerate the enhancement of the CIBI
service.

5. The necessary details that may be required to support this response will be prepared and made
ready at the appropriate forum and time.