No increase in compensation to Government Owned or Controlled Corporations officers and employees

MANILA, Jan. 17 (PNA) — The Governance Commission for Government Owned or Controlled Corporations (GCG) has not approved any increase in compensation, bonuses, allowances and other benefits for government owned or controlled corporations (GOCCs) directors, officers and rank-and-file employees, said GCG Chairman Cesar L. Villanueva.

Villanueva issued the statement during the regular press briefing in Malacanang on Friday following reports that the Commission on Audit (COA) has ordered officials and employees of 31 GOCCs to reimburse the government in the amount of some P2.3 billion equivalent to the sum of alleged excessive bonuses and allowances paid to them in 2012.

The COA’s findings showed GOCCs paid “bonus(es), allowances, and benefits to the board of directors and employees without or in excess of legal basis or proper authority.”

“Apart from putting into effect the Performance-Based Bonus or PBB for officers and employees, which was directed by the President Benigno S. Aquino III himself under Executive Order 80 in 2012; and the grant of Performance-Based Incentives or PBI for Appointive Directors pursuant to the President’s EO 24 issued in 2011 and he emphasized this: “GCG has not granted nor authorized much less has it recommended to the President any increase in the rates of compensation, bonuses, allowances and other benefits within the GOCC sector,” Villanueva said.

“In fact, it (GCG) has consistently denied various applications made for such increase in rates including those that resulted from collective bargaining process. Such position of the GCG is, in fact, in line with the moratorium dictated by the President under Executive Order 7,” Villanueva stressed.

Villanueva said the GCG had actually reviewed the COA reports released in September, 2013. The GCG has subsequently directed the GOCCs mentioned by the COA to submit a concrete response within 24 hours.

“Therefore, the bulk of the COA-reported unauthorized allowances, bonuses and benefits amounting to P2.313 billion granted to 30 GOCCs relate to practices or existing rates that were carried over from the previous administration, and were therefore inherited by the GOCC Governing Boards appointed by the current administration,” Villanueva said.

“When the GCG was constituted in October 2011, the work that it had to undertake in this area was to sort out the legal issues involved as the claim of employees for non- diminution of benefits granted was an issue that had to be resolved,” Villanueva said. (PNA)