Palace determined to freeze perks and bonuses of GOCCs
Manila (8 September) -- Malacaņang is ready to freeze the generous perks and bonuses enjoyed by executives of government-owned and controlled corporations in line with the austerity measures of President Benigno S. Aquino III.
In a news briefing, Presidential Communications Operations Office Secretary Herminio "Sonny" Coloma said the implementation will take effect once the salaries, bonuses and perks of the GOCC officials have been rationalized.
Coloma said the Department of Budget and Management (DBM) is now working on how to tighten up existing Administrative Order No. 103 of 2001 adopting austerity measures in government. He said it will be included in the draft Executive Order that President Aquino will soon issue.
The President had earlier divulged that he will issue an EO to prevent the excessive pay benefit packages of some GOCC executives which have reached scandalous levels.
He said the EO will be all-encompassing, and will rationalize, put a cap and limit the pay packages for government nominees. The EO will also reiterate the cap contained in an existing order of the previous administration but which was not enforced.
Meantime, Coloma said Malacanang is ready to dissolve around 15 non-performing GOCCs once they fail to demonstrate their capacity for viable operations.
"I think the direction is towards ensuring that all the GOCCs are operating viably or able to sustain their operations. And if they cannot demonstrate the capacity for viable operations then it is imperative that due consideration be given to phasing them out," Coloma said. (cdls/4:00 p.m) [top]