Garci general, brother of FG errand boy among top GOCC earners

MANILA, Philippines – A former military general tagged in the controversial “Hello, Garci” scandal and a relative of the alleged errand boy of the husband of former President Gloria Macapagal-Arroyo are among the top earners of government-owned and controlled corporations (GOCCs) listed by the Commission on Audit (COA) in its report in 2009.

As the Senate resumes its inquiry today, sources have revealed that former Armed Forces chief, retired general Narciso Abaya enjoyed salaries and compensation amounting to P7.6 million last year as president/CEO of Bases Conversion and Development Authority (BCDA).

Probably rewarded for preventing his brother from testifying against then First Gentleman Jose Miguel Arroyo, former presidential adviser for Region 9 (Zamboanga Peninsula) Ferdinand Mahusay enjoyed salaries and benefits totaling P4.6 million for sitting in the board of the Metropolitan Waterworks Sewerage System (MWSS) Corporate Office.

The COA study on the salaries and compensation of GOCC executives had listed the highest earner as Subic Bay Metropolitan Authority administrator Armand Arreza for receiving P26.8 million in 2009. He was followed by Benigno Ricafort of Clark Development Corp. with P14.5 million.

A number of Arroyo allies and some newspaper columnists were also identified in the report.

Apart from being the president/CEO of BCDA, Abaya, who ranked seventh in the COA list, held other positions – member of the board of Clark Development Corp. (CDC), adviser to the Board of Directors of Clark International Airport Corp. (CIAC), member of the John Hay Management Corp. (JHMC) board and member of the board of the BCDA Management and Holdings, Inc.

Of Abaya’s total earnings, P5.9 million came from his basic salaries as president/CEO of BCDA; P695,027.14 as member of the CDC Board; P370,000 as adviser for the Board of Directors of the CIAC; P350,000 as member of the JHMA and P250,000 as member of the BMHI.

For all positions, Abaya got a total per diem allowances of P1.5 million; P380,474 representation and transportation allowances (RATA); P24,000 for PERA/ADCOM; P4,000 for clothing/uniform; P120,678 for medical allowances; and P40,000 bonuses and incentives.

FG’s man

Mahusay, meantime, ranked number 27 in the COA list. Mahusay earned P4.6 million for sitting with the MWSS Corporate Office.

Mahusay’s brother, Eugenio alias “Udong,” who acted as errand boy of former first gentleman Jose Miguel Arroyo, claimed in 2003 that his erstwhile boss signed a check as Jose Pidal.

But Udong later retracted his statement, putting to naught the accusations of Sen. Panfilo Lacson – now a fugitive himself. Mr. Arroyo was alleged to have stashed away P321 million in campaign funds under the fictitious name Jose Pidal.

Udong was snatched from Lacson’s men who were keeping him at a safehouse in Tagaytay in 2003.

Mahusay’s salaries and benefits were comparatively higher than Local Water Utilities Administration (LWUA)’s Prospero Pichay Jr. who earned P3.3 million last year.

Based on the COA report, Mahusay earned P952,000 per diem, P336,000 in RATA; P2.7 million in bonuses and incentives and P623,115 for extraordinary and miscellaneous expenses.

A more detailed COA report on their salaries and compensation showed that Arreza, as administrator of SMBA and member of the board of Bataan Technology Park Inc. (BTPI), had total salaries and compensation of P26.865 million.

Of the amount P1.571 were from his basic salaries, P20, 000 each per diem for the two positions, P1 million in RATA, P12,000 for PERA/ADCOM, P4,000 for clothing/uniform; bonuses and incentives amounting to P145,880.77; and others – reaching P6.8 million and P18.16 million under extraordinary and miscellaneous expenses.

Others in the COA’s list of the highest earners among GOCC and National Government Agencies’ top executives were: Development Bank of the Philippines (DBP)’s Edgardo Garcia, P12.7 million; Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr., P10.8 million; DBP’s executive vice president Benedicto Ernesto Bitonio Jr., P9.3 million; DBP operations head/EVP Geronimo Rolando, P9.08 million; Social Security System (SSS) chairman Horacio Templo, P7.07 million; DBP senior executive vice president Armando Samia, P6.9 million; DBP’s Ma. Theresa Quirino, P6.7 million; BCDA’s Isaac Puno III, P6 million; DBP’s Jesus Guevarra II, P5.6 million; BSP’s Armando Suratos, P5.5 million and Land Bank of the Philippines executives Wilfredo Maldia, P5.4 million and Andres Sarmiento, P5.4 million.

Senate wraps up inquiry

The Senate finance committee resumes today its inquiry into the alleged excessive and unwarranted salaries, allowances, bonuses and other emoluments and perks of top officials and members of the boards of GOCCs and government financial institutions (GFIs).

Sen. Franklin Drilon, Senate finance committee chairman, has invited members of the Departments of Budget and Management (DBM) and Finance as well as officials of the Pag-IBIG fund in today’s hearing, said to be the last for GOCCs/GFIs.

Drilon is keen on wrapping up the probe to finally determine possible remedial legislation that Congress can do to put a cap on the excessive salaries and compensation of GOCC executives.

Upon prodding of the Senate, President Aquino has issued an executive order that suspends the extra compensation packages of GOCC executives until yearend.

‘Abolish MWSS-RO’

An administration lawmaker pushed yesterday for the abolition of the Metropolitan Waterworks and Sewerage System Regulatory Office (MWSS-RO) as she questioned the body for failing to protect Metro Manila water consumers from “unfair and unconscionable” water rate adjustments in Metro Manila.

Bagong Henerasyon party-list Rep. Bernadette Herrera-Dy said the MWSS-RO, like the state-run Metropolitan Waterworks and Sewerage System, has failed to protect the public against unjustified increases in water rates.

Cost of water in Metro Manila and neighboring localities in Rizal, Bulacan and Cavite has been adjusted by at least 700 percent in just a period of 10 years, she said.

The MWSS-RO is a creation of the concession agreement between MWSS and the two private water concessionaires-the Manila Water Co. Inc. and Maynilad Water Services Inc. Its main task is to evaluate and determine the reasonable water rates to be imposed by the two private firms.

Herrera-Dy proposed the creation of a Water Regulatory Commission to “absorb the present functions” of the MWSS-RO.

She said since this will be a creation of the government, the proposed WRC is expected to maintain its independence and ensure that pro-consumer and pro-poor policies are strictly implemented.

“Its present setup is a hindrance to the MWSS-Regulatory Office to achieve its mandate since its independence is compromised by the fact that its operating budget and also that of the MWSS Corporate Office, come from Manila Water and Maynilad,” she said.

“The MWSS-RO and the MWSS Corporate Office have both backed unabated water cost hikes imposed by MWC and Maynilad through the rate rebasing exercise which is implemented every five years since 1998,” Herrera-Dy said.

Records of the MWSS indicated that MWC has increased water rates from P4.02 cubic meters in 1997 to the present P30.34 per cubic meter for MWC customers.

Maynilad, on the other hand, hiked its charges from P7.21 per cubic meter in 1997 to P33.32 today.

Under the rate rebasing scheme, MWC and Maynilad are allowed to adjust charges to recover past expenditures and provide sufficient funding for their future water development and sewerage improvement projects.

Herrera-Dy said this paved the way for the MWC and Maynilad to collect billions of pesos from consumers without implementing the planned projects.

“It means that the concessionaries are allowed under this strategy to recover their expenditures, and such costs are directly passed on to the consumers, whether or not these projects are implemented,” she said.

She said consumers are already being billed for the cost of projects that have yet to be implemented, including the P4.130-billion Earthquake Contingency project whose cost had been included in water bills collected since 2008; the P732-million Wawa Dam project which remained pending since 2003 but is already included in the 2003 rate rebasing computation and also included in the charges imposed on users; the 300 MLD (million liters daily) Treated Bulk Water Project in Laguna Lake costing P100 million that was included in the 2003 rate rebasing program; the Angat Water Reliability Project at P5.4 billion; and the P45.3-billion Laiban Dam that was included in the 2008 Rate Rebasing. –Paolo Romero (The Philippine Star)