PEZA officials defend pay hikes

MANILA, Philippines - Officials of the Philippine Economic Zone Authority (PEZA) defended yesterday the agency’s disbursement of P93.65 million for the salary increases of its officers and employees from June to December last year.

Elmer San Pascual, PEZA manager for promotion and public relations, said the increase in the salary of PEZA personnel and officials shall be approved by the members of the board and not by the President under Republic Act 8748, an Act amending RA 7916 or the “Special Economic Zone Act of 1995.”

At the weekly Kapihan sa Diamond Hotel media forum, PEZA Director General Lilia de Lima stressed that the pay hike covers all employees of PEZA, excluding the members of the board.

She said PEZA employees have not received a salary increase since 1999 while the government had implemented wage increases for state workers about three times.

She said the agency’s 527 employees received a 40-percent increase in their salaries last year.

The Commission on Audit (COA) earlier said PEZA violated the 1994 Congress Joint Circular, which the Supreme Court had upheld. This gives the President the sole authority to approve salary adjustments for government-owned and -controlled corporations that are not covered by the Salary Standardization Law.

This is not the first time that PEZA was questioned for allowing the adjustments. Notices of disallowances, suspensions and charges were served upon officials for pay hikes between July 2009 and May 2010 amounting to P154.52 million.

“Review of the expenditures for personal services of PEZA-HO (Head Office) and its branches for the calendar year 2010 disclosed that, despite the NS (notices of suspensions) earlier issued, the Authority continuously paid to PEZA officers and employees the questionable transactions totaling P93,651,135 more or less for the period June to December 2010,” COA said.

San Pascual said they provided COA with their explanation on the disbursement of funds but was not included in its report.