Thursday, 06 January 2011 12:40
Malacañang has extended the suspension of all allowances, bonuses, incentives and other perks of board of directors and trustees of government-owned and -controlled corporations (GOCCs) and government financial institutions (GFIs) until January 31, 2011, according to Executive Order No. 19 signed by President Benigno Aquino III.
The suspension was extended for another month pending the issuance of policies and guidelines by the Task Force on Corporate Compensation (TFCC), which was created by Executive Order No. 7 to review all remuneration granted to board directors or trustees, officers and rank-and-file employees, as well as discretionary funds of GOCCs and GFIs.
The President signed EO No. 19 on December 30, 2010.
EO No. 19 says that “complexity of issues and number of GOCCs and GFIs” merit the “need to further review the grant of all remunerations and discretionary funds of the board members.”
Executive Secretary Paquito N. Ochoa Jr. said the TFCC had requested a one-month extension to allow it to finish its study and finalize its recommendations.
“The additional time they requested is understandable. We know that they want to come up with recommended policies and guidelines that are fair and reasonable to all those concerned, as well as cognizant of the need to balance the need for prudent government spending and the operational flexibility accorded to GOCCs and GFIs to allow them to be effective,” Ochoa said.
The Palace issued EO No. 7 last September in light of the questions surrounding the allowances and benefits given to executives and staff of GOCCs and GFIs, which generally exceed those given to government employees.
Aside from creating the TFCC and requiring GOCCs and GFIs to provide the task force with the information it requires for the review, EO No. 7 also imposes a moratorium on “increases in the rates of salaries and the grant of new increases in the rates of allowances, incentives and other benefits” of GOCC and GFI employees, except salary adjustments provided in EO Nos. 801 and 900, unless specifically authorized by the President.
The TFCC is composed of representatives from the Office of the President, the Departments of Finance and Budget and Management, the Civil Service Commission. (PCOO/PIA9-BST)
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