The Senate on Wednesday unanimously adopted a resolution urging President Benigno Aquino 3rd to suspend immediately the “excessive and unwarranted” allowances, bonuses, incentives and other perks of board members of government-owned and -controlled corporations (GOCCs) and government financial institutions (GFIs). Sen. Franklin Drilon, the sponsor of the resolution, said that the measure is just a temporary one to prevent further erosion of government revenues while Congress crafts a law on reasonable pay and perks of GOCC and GFI officials.
“The suspension by the President of bonuses, allowances, car loans, stock options and other perks of the Board of Directors of approximately 957 GOCCs will enable the government to address its increasing budget deficit and avert the imposition of new taxes,” the resolution stated.
Drilon filed the resolution after the Senate Committee on Finance, which he heads, uncovered the practice of the board members giving themselves “unwarranted allowances, bonuses, incentives, stock options and other benefits.”
He said that unless the President steps in, the board members of the GOCCs and GFIs would continue to receive these unwarranted perks.
Drilon noted that officials of the Metropolitan Waterworks and Sewerage System (MWSS) are due to receive two-month bonus “soon.”
The resolution also directed that proceeds from stock options exercised by GOCC or GFI representatives in private corporations be turned over to the national government.
During a previous hearing of the Senate Committee on Finance, Drilon cited data showing that four officials of the Social Security System sitting as board members of Philex Mining had a potential gain of P92.818 million from stock options of the private company from 2007 to 2008.
Disputing Drilon
But former Social Security System (SSS) Chairman Thelmo Cunanan refuted Drilon’s claim that he netted P66.64 million from exercising his stock option in Philex Mining.
He said that he used his own money in buying 4.5 million stocks and that he made only P15 million since he did not sell all of them.
Cunanan added that he could not possibly turn over the stock option to the SSS trust fund because this is non-transferrable.
Drilon insisted that Cunanan should be credited for the market value of the entire 4.5-million stocks since a stock option is considered part of a director’s fee.
Also on Wednesday, he issued a date sheet claiming that Cunanan earned about P132.656 million in his capacity as board member of Philex Mining, First Philippine Holdings and Union Bank from 2007 to 2010.
Cunanan’s annual pay and perks from these companies are: P22.221 million in 2007; P16.795 million in 2008; P89.539 million in 2009; and P4.1 million in 2010.
BY EFREN L. DANAO SENIOR REPORTER
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