Gov't reviews salaries of GOCC execs

MANILA, Philippines - The Aquino administration is reviewing the compensation structure for heads and executives of government-owned and controlled corporations (GOCCs) who sit in various private corporations in their capacity as GOCC executives, a ranking official said.

According to the new rules, GOCC executives can only receive bonuses, profit shares and other perks from private corporations subject to certain limits. The rest of the amount, beyond limits soon to be set by the GCG, would have to be turned over to the respective GOCC, said Social Security System (SSS) president and chief executive officer Emilio de Quiros Jr.

SSS is one of the agencies covered by the new rules.

The move is part of efforts to prevent abuse by some previous GOCC officials of their position in government.

The Governance Commission for GOCCs (GCG), created under Republic Act 10149 otherwise known as the GOCC Governance Act of 2011, is spearheading the reforms in all GOCCs, De Quiros said.

“They’re reviewing the compensation structure,” De Quiros told The STAR.

In the case of SSS, De Quiros said that they are only allowed to receive P40,000 per board meeting of private companies where they sit to represent government’s interests on the respective firms.

Some private firms pay their directors P100,000 per board meeting. De Quiros said SSS executives would have to turn over the amount in excess of P40,000 to the respective GOCCs.

There will be other guidelines governing GOCCs to be issued within the year by the GCG, chaired by former Ateneo Law School Dean Cesar Villanueva.

Under the GOCC Act, the GCG is created to act as a “central advisory, monitoring, and oversight body with authority to formulate, implement and coordinate policies” that would govern GOCCs, GFIs and other state entities.

According to the tentative listing given to the Commission, there are 158 GOCCs.

One of its mandate is to “conduct compensation studies, develop and recommend to the President a competitive compensation and remuneration system which shall attract and retain talent, at the same time allowing the GOCC to be financially sound and sustainable.”

“After conducting a compensation study, develop a Compensation and Position Classification System which shall apply to all officers and employees of the GOCCs whether under the Salary Standardization Law or exempt therefrom and shall consist of classes of positions grouped into such categories as the Commission may determine, subject to the approval of the President,” the GOCC Act said.

One case in the past that involved GOCC compensation and taxes was filed against former SSS president and CEO Romulo Neri.

The Senate finance committee has investigated Neri as part of its investigation on the perks and salaries of executives in GOCCs.

Neri received at least P11.86 million from the sale of the stock dividends from Philex Mining Corp., according to the Senate investigation.

During the hearings at the Senate, lawmakers said the stock dividends should have gone back to SSS and not to Neri because his representation in the Philex board was by virtue of SSS’ investments in the company.

Because of the Senate investigation, the Bureau of Internal Revenue (BIR) has filed tax evasion charges against Neri regarding taxes he allegedly did not pay for the perks and salaries he earned as SSS chief. Neri pleaded not guilty to the charges filed against him.