As postmaster general In the aftermath of the
People Power Revolution in February 1986 which ousted President
Ferdinand Marcos, incoming president
Cory Aquino appointed Banayo as postmaster general, succeeding
Roilo Golez who had resigned to run for the
Senate in the
1987 elections. As Postmaster General, Banayo instituted reforms aimed at reducing employee
pilferage, in particular installing
one-way mirrors at
Manila International Airport Airmail Distribution Center. He resisted calls to conduct a purge of Marcos-era employees, though he did aim to make executive cuts while expanding the number of
mail carriers,
mail sorters, and other base-level employees. He also investigated corruption and malfeasance as part of a "big cleanup", in some cases finding that allegations of corruption against certain people were in fact false rumors spread by political opponents, while in other cases finding genuine wrongdoing such as a mail-pilfering syndicate operating in the
Ilocos and
Cagayan Valley regions. Banayo was also responsible for the push to establish the
Philippine Postal Corporation, a government-owned company, to replace the old Bureau of Posts. as well as general manager of the
Philippine Tourism Authority. where he formerly served as his
campaign strategist during
2004 elections.
Administrator of the National Food Authority Banayo was appointed to head the
National Food Authority by President
Benigno Aquino III, amidst accusations of over-importation by outgoing president
Gloria Arroyo's administration. In response to President Aquino's complaints of rice stocks "rotting in government warehouses", he appointed a private-sector auditor to investigate the NFA's rice procurement and importation system. Banayo also called on the
National Bureau of Investigation to help combat rice smuggling. By January 2011, Banayo had produced a report with his findings, alleging overpricing of rice imports during the Arroyo administration, which he submitted to Aquino for further investigation; Arroyo-era agricultural officials including
Arthur Yap disputed Banayo's price data. During the rest of his tenure, Banayo aimed to decrease the agency's role in rice importation, stating that the private sector should take the lead in this regard, and instead focus on local procurement; he would later warn of the financial dangers of the NFA "monopoly" on imports. In 2014, the
National Bureau of Investigation filed graft charges before the Ombudsman against Banayo and five others in connection with the alleged irregular rice importation program of the agency during his tenure.
House of Representatives campaign In September 2012, Banayo resigned from his NFA post to prepare to contest the
May 2013 House of Representatives mid-term elections in Agusan del Norte.
Orlan Calayag was appointed to succeed him in January 2013. In December 2012, 4 SM Agri Venture Multi-Purpose Cooperative head Simeon Sioson claimed in testimony before the Senate that Banayo and
Nixon Kua had been involved in rice smuggling. At the time, Banayo had just undergone heart surgery, and did not appear at a Senate Agriculture and Food Committee hearing about the smuggling allegations; chairman
Francis Pangilinan stated in media comments that the committee would schedule another hearing. He withdrew from the race at the end of his month, citing health reasons. Fellow party members denied reports that his withdrawal was related to unpopularity or the rice smuggling inquiry against him. In February 2013, the Senate committee recommended that Banayo and Gilbert Lauengco of the NFA's special bids and awards committee be charged under the Anti-Graft and Corrupt Practices Act (R.A. 3019). Their findings were later referred to the
Ombudsman of the Philippines, which by March 2014 had declined to pursue the matter further. ==References==