EDITORIAL - Clarify the rules

It’s bonus time again, and government workers, like those in the private sector, are expecting the perks that are given out during the holiday season. The typical Philippine public servant receives modest compensation, but some are unduly getting much more than others, according to state auditors.

Based on its latest annual financial report, the Commission on Audit recently ordered 28 government-owned and controlled corporations to return P626 million in bonuses, allowances and incentives paid in 2014 that are not authorized by law. Most of the 28 are local water districts. One of the GOCCs is the Bangko Sentral ng Pilipinas, which was ordered to return over P30.1 million.

The Philippine Economic Zone Authority distributed the largest amount, totaling P213.84 million, the COA reported. Both the PEZA and the central bank are highly regarded in their performance by the business community, so the rules on allowances, bonuses and other perks are perhaps being interpreted differently.

State auditors and pertinent authorities must clarify the rules. Malacañang has told the state firms to follow the COA directive. The Governance Commission for GOCCs has also told the affected firms to explain to state auditors the bonuses, allowances and incentives. But the GCG also said officials and employees of the central bank, economic zones, local water districts and research institutions are not covered by the rules cited by the COA.

The issue must be clarified quickly. Philippine government workers are among the lowest paid in the world, and it grates on them when they learn that other state employees are getting paid so much higher. On the other hand, defenders of the GOCC pay packages argue that the state firms need to attract competent individuals with specialized skills so the compensation must be competitive with rates in the private sector.

The controversy over GOCC perks has persisted for several years. Violating auditing rules can earn criminal indictments and land GOCC officials and employees behind bars. Before this happens, the rules must be clarified and the GOCC perks rationalized.