Senate execs found getting fat allowances, bonuses

Sen. Franklin Drilon has been harping about the excessive pay, allowances and bonuses of executives of Government owned and controlled Corporations (GOCC) and Government Finance Institutions (GFI), but in his own backyard, the Senate, some Senate executives have been found by the Commission on Audit (CoA) to be receiving excessive allowances and bonuses, with some of them receiving amounts even higher than their monthly pay.

Those currently subject of “investigation” by the CoA are said to be receiving monthly allowances ranging from P33,000 to as much as P200,000.

This information came about as Drilon stood his ground on the decision made by President Aquino suspending until the yearend the fat bonuses and other perks of some GOCC executives.

The issuance of Executive Order No. 7 was the result of a series of investigations in the Senate on the GOCC executives, led by Drilon.

Drilon yesterday defended the legality of EO 7, saying it was only proper to stop the bleeding of government coffers.

Those now under scrutiny by the CoA are from the Senate secretariat; those who are regular personnel of the upper chamber and not assigned to any of the current senators.

A member of the secretariat with an item of a director II and salary grade 26 is receiving a pay of P27,000 and allowance of P33,292 a month.

While a director III, with salary grade level 27 is receiving P28,000 monthly salary but his allowance is almost twice the amount or over P58,000.

The CoA also noted that director IV, with salary grade level 28 and monthly pay of P29,000 is receiving an

allowance of P64,081.66 while director V with salary grade 29 gets P30,000 salary and an allowance of P77,000.

The 11 Senate executives with a rank of director VI who are salary grade level 30 receive a P34,000 monthly pay and allowances amounting to P104,000. This group includes the Sergeant-at-Arms, legal counsel, deputy secretaries, and directors general of various offices.

Topping the list is the Senate secretary who is at salary grade 31 which is considered already at par with senators, with a pay of P48,000 and allowances totaling to P219,232 monthly.

The move by the CoA, sources said, came on the heels of reports that the commission is questioning the P2 million budgetary releases to the office of Senator Panfilo Lacson.

Lacson has been in hiding for the past nine months now due to double murder charges slapped against him.

Senate President Juan Ponce Enrile was prompted to order the temporary closure of Lacson’s office and detailed his staff to the secretariat.

On the other hand, Drilon said that it was only proper for the President to issue the directive, adding that pending the approval of Congress of a proposed law that creates a new compensation scheme for state enterprises, the directors or trustees could have gone their merry-way and abused their prerogative in appropriating for themselves excessive perks.

“The governing boards of various GOCCs have abused their power even more and granted themselves obscene allowances if not for the executive order,” said Drilon, chairman of the Senate Finance Committee that uncovered the widespread misuse of state funds by members of the governing boards of GOCCs.

“Without the EO, the abuses will continue unabated and public interest will continue to suffer,” he added.

Drilon was reacting to a petition filed by Jelbert Galicto, a legal officer of Philippine Health Insurance Corp. in Butuan City, assailing the legality of EO 7 which he said should be declared “unconstitutional” as it he claimed it encroaches on the legislative power of setting pay scale for GOCCs.

The EO only covers the directors and trustees of GOCCs, Drilon stated.

While the directors or trustees of state enterprises have the power to fix the compensation of employees under their respective charters, Drilon, however, said that the governing boards should not have granted themselves unwarranted bonuses as Memorandum Order No. 20 issued by former President Gloria Arroyo in 2001 imposed as a ceiling on compensation on the heads of GOCCs an amount which is double the salary of their counterparts in the Cabinet.

Drilon, who also sponsored Senate Resolution No. 17 urging the President to issue an order which was the basis of the executive order, also authored Senate Bill 2566 or the GOCC Governance Act of 2010.

The proposal seeks to establish a new remuneration system for directors, trustees and employees of GOCCs, which will be recommended by monitoring body to be known as the Governance Council for GOCCs.

However, the ratio of compensation for those occupying higher ranks to those at the lower ranks should be maintained at equitable levels, giving due consideration to higher percentage of increases to lower level positions and lower percentage increases to higher level posts.

No exemptions will be made for state firms from the coverage of the new compensation scheme.

Drilon said an initial hearing is scheduled when session resumes on Nov. 8.  –Angie M. Rosales, Daily Tribune