Aquino stands by order cutting GOCC, GFI execs' bonuses

President Benigno Aquino III on Monday stood by his order suspending the financial perks being received by executives of government-owned and -controlled corporations (GOCCs) and government financial institutions (GFIs) after the order was questioned before the Supreme Court. Philippine Health Insurance Corp. (PhilHealth) lawyer Jelbert Galicto challenged last Friday the constitutionality of President Aquino's Executive Order No. 7, which suspended the allowances, bonuses, and perks enjoyed by the board of directors or trustees of GOCCs and GFIs until December 31, 2010, pending the issuance of new policies and guidelines on the compensation of these board members. Galicto said the Office of the President's issuance of the EO stepped on Congress' powers because the order was supposedly considered a law and "derogates congressional prerogative and therefore unconstitutional." President Aquino, however, maintained that Malacanang had the legal basis to suspend GOCC and GFI executives' bonuses and allowances. "Ano ba yung GOCCs? Government-owned and -controlled corporations. Ano ba yung gobyerno? Di ba sa tao yun? So kung ikaw ay nasa pribadong sektor namuhunan ka, gumanda yung takbo ng kumpanya mo, magdeklara ka ng dibidendo mo. Okay yun. Pero ito hindi mo pag-aari. Heto kumbaga bantay ka ng taumbayan dito sa mga korporasyon na ito," he said at a media briefing in Tarlac City. (What are GOCCs? Government-owned and -controlled corporations, and what is the government? Is it not for the public? If you are in the private sector and you invested and your company flourished, you can declare dividends. That's okay. But this [GOCC] is not yours. You are just the public's caretaker for this corporation.) President Aquino also maintained that EO No. 7 only strengthened an order issued in 2001 by then President Gloria Macapagal-Arroyo that put a cap on the compensation package of executives of GOCCs and GFIs. President Aquino said he is hoping that the Supreme Court, which he recently locked horns with over another controversial EO, would be a "final bastion of democracy" and be "in the service of the people." "Laws are made not for you to be served by the people, but for you to serve the people," said the President. EO No. 7 is the fourth executive order issued by President Aquino that was questioned before the Supreme Court. EO No. 1, which creates the Truth Commission that will investigate unresolved corruption controversies in the Arroyo administration, was questioned by Arroyo allies led by House Minority Leader and Albay Rep. Edcel Lagman. Justice assistant secretary Jose Arturo de Castro JD and Subic Bay Metropolitan Authority (SBMA) director Eddie Tamondong have asked the Supreme Court to nullify EO No. 2, which revokes Arroyo's so-called midnight appointments. De Castro is also seeking to nullify EO No. 3, which revokes Arroyo's EO No. 883 that grants lawyers "occupying legal positions in the government executive service who have obtained graduate degrees in law and successfully passed their bar examinations" with the rank of Career Executive Service Officer III. - KBK, GMANews.TV