Freeze on execs’ perks stays amid SC case–Palace

MANILA, Philippines—Malacañang will continue to implement an order suspending the perks and privileges enjoyed by officials of government-owned and -controlled corporations (GOCCs) and government financial institutions (GFIs) until the Supreme Court “restrains” it from doing so, it said Monday.

But even with this declaration, President Benigno Aquino III is hopeful that the high court will uphold Executive Order No. 7 when it looks into the petition filed by a lawyer in Butuan City asking the tribunal to declare the order unconstitutional.

In issuing EO 7, Mr. Aquino suspended until Dec. 31 all allowances, bonuses and incentives of officials of GOCCs and GFIs. It also stopped raises in the salaries and other benefits of board members, executives and regular employees exempted from the Salary Standardization Law.

The President signed the order on Sept. 8 after a Senate probe of GOCCs and GFIs found that the salaries, bonuses and other incentives of their executives and employees far exceeded those of other officials and staff.

In separate text messages, presidential spokesperson Edwin Lacierda and Chief Presidential Legal Counsel Eduardo de Mesa said the Palace would implement the executive order “until restrained.”

De Mesa said the solicitor general would also oppose the petition for certiorari and prohibition being sought by Jelbert Galicto, a lawyer of Philippine Health Insurance Corp. (PhilHealth) in Butuan City.

Galicto argued that the President was ill-advised in signing EO 7 that, he said, was “null and void for lack of legal basis.”

At Hacienda Luisita in Tarlac City, Mr. Aquino defended EO 7 by citing the difference between GOCCs and private corporations.

He said private corporations could give out perks to employees if their businesses performed well because private individuals owned the firms.

This is not the case of GOCCs which, according to the President, are “government” and are “guardians” of the corporations.

Mr. Aquino said in the case of PhilHealth, he learned that its reserves were more than what was mandated by the law and that it was giving out more perks to its staff than spending time to provide universal health care coverage to the people.

“We did not do anything new but strengthen and complete the process in 2001 when (then President Macapagal-Arroyo) came out with an EO with the same idea of limiting the compensation package for the government,” he told reporters.

The President said he was “hoping” the high court would uphold the wisdom of EO 7.

“I always maintain that at the end of the day, they should really be like us in the service of the people. Laws are made not for it to be served by the people but rather for it to serve the people,” he said. –Christine O. Avendaño, Philippine Daily Inquirer