Senate may subpoena Neri on GOCC probe

The Senate finance committee would not hesitate to subpoena former Social Security System (SSS) chief Romulo Neri should he fail to show up at the inquiry on government-owned and controlled corporations (GOCC) Tuesday, Senator Franklin Drilon said Monday. Drilon said Neri and other state firm executives would have to explain why they supposedly received fat paychecks and excessive perks as board members in private corporations on behalf of GOCCs. "He will be confronted with that issue tomorrow," Drilon told reporters in an interview. The senator explained that GOCC executives sit on the board of private companies as representatives of state firms, not as themselves. "We are rendering public service. When we accept a government post, that is for public service," he said. He specifically cited the obligation of SSS officials to increase the principal of the pension fund for its members, not to benefit from it. Three years ago, Neri, then head of the National Economic and Development Authority (NEDA), invoked executive privilege when the Senate blue ribbon committee questioned him on details of his conversations with former President Gloria Macapagal-Arroyo in connection with the botched $329-million National Broadband Network deal. The Supreme Court later allowed Neri to invoke the privilege, saying his conversations with Arroyo, now a congresswoman representing Pampanga's second district, was privileged communication. In the wake of the controversy, Arroyo transferred Neri from NEDA to SSS. Neri is currently facing graft charges with the Sandiganbayan for his alleged involvement in the deal with China's Zhong Xing Telecommunications Equipment (ZTE) Corp. Other GOCC execs Aside from Neri, Drilon said they also plan to summon former SSS chair Thelmo Cunanan, Subic Bay Metropolitan Authority administrator Armand Arreza, and Clark Development Corp. (CDC) chief executive officer Benigno Ricafort. "The rule that we follow is the chair and the chief executive officer of about five corporations, but tomorrow is not the last hearing anyway," he said. Of the more than 150 GOCCs, 26 are exempted from the Salary Standardization Law. Last week, the senator listed the highest-paid GOCC executives in the last three years, including Arreza (P26.9 million last year), Ricafort (P14.5 million), Development Bank of the Philippines deputy executive officer Edgardo Garcia (P12.7 million), Bangko Sentral ng Pilipinas Gov. Armando Tetangco Jr. (P10.8 million), and DBP executive vice president Benedicto Bitonio Jr. (P9.3 million). Arreza's compensation package supposedly included P100,000 transportation allowance, P1.8 million gasoline allowance, and P5.7 million intelligence fund. Senate President Juan Ponce Enrile suggested that the Senate also review the allocation of intelligence funds. It is within the jurisdiction of Congress because intelligence funds are included in the appropriations, according to Drilon. "We are flabbergasted that they have also intelligence funds. [GOCCs] have no right to have intelligence funds," said Drilon, adding that only law enforcement agencies are entitled to such funds. —VS, GMANews.TV