GOCCs heydays of fat pay over soon

The days of executives of government-owned and -controlled corporations (GOCCs) enjoying unwarranted salaries and excessive perks, some of which were noted to have been the equivalent to 25 months of salaries, will soon come to an end.

A proposed legislation establishing a reasonable compensation package for directors, trustees and employees has been presented in the Senate, the result of the series of public hearings last year conducted by the finance committee on the reported high salaries and huge allowances of those in the GOCCs.

In the report filed by the upper chamber finance committee, headed by Sen. Franklin Drilon and signed by 17 of his colleagues, a “governing commission for GOCCs” will be created and will have the delegated powers of Congress to reorganize the various boards and to set new compensation schemes for the directors and employees, subject to the President’s approval.

“This reform measure is a timely response to widespread criticism over the abuse of public funds by the directors, trustees and even employees of state-owned firms. This landmark legislation is part of our broader effort to put an end to the bleeding of government coffers,” Drilon said, in explaining the report which he claimed contain a wide-ranging reform plan for GOCCs.

In an interview with reporters, Drilon said he is hoping that President Aquino will certify the recommendations of his committee which is under Senate Bill 2640 or the proposed GOCC Governance Act of 2011, since it coincides with the Chief Executive’s key policies in rationalizingthe operations of state enterprises.

“The President mentioned it as one of those bills being examined by the Cabinet and yes I would urge the administration to certify this as an administration measure. I think it’s one of those priorities that the Cabinet has decided on.

“We have requested our colleagues in the House to file a similar measure so we can work on this simultaneously. We do hope this is one reform measure we can pass in the next quarter.

“It’s very urgent. As we talk today, the GOCC boards have continuing power to appropriate for themselves gargantuan bonuses. Right now it’s suspended by an EO (executive order). But that can’t go on forever. So we must reform these structurally,” he told reporters.

The bill’s approval in the administration-dominated Senate would highlight the widespread public frustration with the way state-owned enterprises operate, particularly in granting the members of the governing boards and some officials excessive allowances and bonuses despite the government’s tight fiscal position, said Drilon.

All GOCC personnel shall be paid just and equitable wages, and generally comparable with those is the private sector, in accordance with the principle of equal pay for work of equal value. Differences in pay shall be based on verifiable Compensation and Position Classification factors in regard to the financial capacity of the government.

No GOCC shall be exempt from the coverage of the new compensation system to be developed by the commission under the proposed legislation.

The monitoring body may also recommend, subject to the President’s approval, additional allowances for certain position titles, giving due consideration to the necessity for such allowances and the good performance of the state enterprise.

The Senate is expected to tackle the measure, with Drilon eyeing its sponsorship in plenary next week.

The committee report was signed by Drilon, Senate President Pro-Tempore Jinggoy Estrada, Majority Leader Vicente Sotto III, Minority Leader Alan Peter Cayetano, Senators Ralph Recto, Teofisto Guingona III, Edgardo Angara, Gregorio Honasan II, Loren Legarda, Francis Escudero, Ramon “Bong” Revilla Jr., Manuel “Lito” Lapid, Manuel Villar, Ferdinand Marcos Jr., Sergio Osmeña III, Pia Cayetano, Francis Pangilinan and Juan Miguel Zubiri. –Angie M. Rosales, Daily Tribune