Palace welcomes Senate call to cut GOCC bonuses

Malacañang is still studying the Senate's call for the suspension of the allowances and bonuses of government financial institutions (GFIs) and government-owned and -controlled corporations (GOCCs) board members, but this early, a Palace official said the proposal is in line with President Benigno "Noynoy" Aquino III's priorities. On Wednesday, the Senate adopted Senate Resolution 17 filed by Senator Franklin Drilon, Aquino's close ally in the Liberal Party, asking Aquino to suspend the supposedly excessive bonuses – except per diems – of GFI and GOCC board members pending the enactment of legislation. (See: Senate formally asks Aquino to cancel GOCC bonuses) "We welcome the Senate resolution and appropriate action will be taken on it," Presidential Communications Operations head Sonny Coloma said at a press briefing. Coloma pointed out that the Senate investigation into GOCC and GFI board members' allowances and bonuses was triggered by Aquino's revelations in his State of the Nation Address last July that board members of the Metropolitan Waterworks and Sewerage System (MWSS) received excessive benefits during the Arroyo administration. "The spirit of the resolution is in keeping with the president's desire to weed out corrupt practices in government," Coloma said. SR 17 also asked the president to compel board members to turn over directors' fees, bonuses, stock options, allowances, and other benefits they have received while on the governing boards of private companies where the GFI or GOCC has investments. The Senate finance committee, chaired by Drilon, is currently probing huge compensation packages executives of GFIs and GOCCs are reportedly receiving in violation of Executive Order No. 20 that capped their pay increases. The investigation seeks to help the Aquino administration plug a burgeoning budget deficit. The Department of Budget and Management and the Department of Finance are also crafting guidelines to keep the allowances and benefits of the top officials of GOCCs and GFIs in check. — Jam Sisante/RSJ, GMANews.TV