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Bank leadership change sparks MMDA ‘salary shaving’ discovery

The MMDA said further investigation revealed a wider conspiracy with the suspected involvement of additional employees
Members of the Metropolitan Manila Development Authority Northern Traffic Enforcement District conduct clearing operations along the streets in Caloocan City to ensure the smooth flow of traffic devoid of any obstructions.
Members of the Metropolitan Manila Development Authority Northern Traffic Enforcement District conduct clearing operations along the streets in Caloocan City to ensure the smooth flow of traffic devoid of any obstructions. Photograph courtesy of MMDA
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A managerial position change at the Metropolitan Manila Development Authority’s (MMDA) official bank allegedly led to the discovery of the salary shaving scam at the agency.

Sources at the agency disclosed that one female employee inquired about losing a certain amount of money from her salary. It turned out that the manager had recently changed, leading to the discovery of the scam.

Reports also disclosed that the person who created the salary shaving scheme at the agency resigned after receiving information that someone had inquired about the issue at the bank.

The scheme had reportedly been in place for seven years, but the perpetrators were unknown until MMDA general manager Procopio Lipana had two employees arrested and charges were filed against them.

Following the incident, MMDA chairperson Atty. Don Artes personally filed a complaint immediately after the scheme was uncovered.

Reports indicate that the employees manipulated the computerized payroll system to unlawfully take small amounts from the salaries of targeted colleagues and divert the funds to their own accounts.

The MMDA said further investigation revealed a wider conspiracy with the suspected involvement of additional employees.

The implicated employees have been placed under preventive suspension, and their work computers have been secured.

Information gathered showed that aside from the payroll division, another division of the MMDA is allegedly involved.

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