House bill seeks to limit perks of GOCC executives

MANILA, Philippines - Aurora Rep. Juan Edgardo Angara has filed a bill seeking to limit the amount of salaries, allowances and other perks that officials of government-owned and controlled corporations (GOCCs) may receive. 

“We should stop this abusive and scandalous use of GOCC funds but at the same time, we should also make sure that these corporations are run and managed by competent professionals,” he said in House Bill 660. “Reports of excessive salaries, allowances and perks should be a wake-up call for Congress to put a cap on GOCC spending.”              

HB 660 requires government corporations and their subsidiaries to submit their annual operating budgets to Congress for scrutiny.                                                                  

 At present, GOCC budgets are not submitted to Congress. These corporations would also be required to report their financial performance and disclose existing loans.               

“We can only have a better picture of what is really happening to GOCC funds if we can review, change and limit their operating budgets,” Angara said.

Angara said, however, that limiting the salaries and privileges of GOCC officials should not hinder government firms from maintaining highly skilled professionals.                   

“Personally, I don’t have a problem paying a million to a GOCC official who can bring back a hundred million to the national treasury,” he said.       

Public scrutiny of spending by government corporations started when President Aquino, in his first State of the Nation Address, claimed that directors and officers of the Metropolitan Waterworks and Sewerage System (MWSS) were receiving excessive bonuses, allowances and other privileges.

 Mr. Aquino claimed that MWSS officials receive the equivalent of 30th month pay, plus additional bonuses.                                                                                         

He said a member of the MWSS board receives P2.5 million a year exclusive of car service and financial assistance.          

The Commission on Audit later reported that officers of Subic Bay Metropolitan Authority, Clark Development Authority, Bases Conversion and Development Authority receive huge salaries and benefits packages.