The discovered payroll-shaving scam involving personnel of the payroll division of the Metropolitan Manila Development Authority (MMDA) appears to be just the “tip of the iceberg.”
Sources at the agency said the scam has been ongoing for the last seven years, with millions of pesos going directly to the accounts of those responsible within the agency.
The scheme had gone “unnoticed” and was only discovered recently, leading to the arrest and charging of personnel, with no less than MMDA chairperson Atty. Romando Artes as the complainant.
Reportedly, one of those arrested in connection with the scam has “squealed” and implicated someone with a position in another division at the agency.
“Sir, good morning, the one detained for transferring employees’ money to their personal accounts has reportedly confessed and said they had an accomplice. This incident should not be covered up because they are getting millions from the loose change or small amounts in the payroll,” the source said.
Last week, the MMDA announced the discovery of an illegal salary deduction scheme perpetrated by some personnel within its payroll division.
The agency said in a statement that these unscrupulous personnel found a way to manipulate the computerized payroll system, unlawfully taking small amounts from the salaries of targeted employees and diverting those amounts to their own accounts.
MMDA general manager Procopio Lipana led the arrest of the employees believed to be involved in the scheme.
The MMDA, however, did not disclose the number of individuals arrested, identify the suspects, or specify the charges filed against them. It also did not reveal the total amount reportedly taken from the victims.
The agency further revealed that investigations exposed “a deeper conspiracy… with the alleged involvement of other employees.”
Those suspected of involvement have since been placed under preventive suspension, and their work computers have been secured.
The MMDA also stated that an internal audit and investigation are ongoing, and safety measures have been implemented to prevent similar schemes in the future.
“Rest assured that the MMDA will delve deeper into the matter and make sure that all responsible will be prosecuted and punished accordingly,” it said.