Drilon defends Aquino order cutting GOCC, GFI execs' bonuses

Senator Franklin Drilon on Wednesday defended President Benigno Aquino III's executive order (EO) suspending the bonuses and allowances of state firm executives, saying it was necessary to stop the "bleeding" of government coffers. Drilon, who heads the Senate finance committee, said it was only "proper" for Aquino to issue EO No. 7 pending the passage of a law that would regulate the compensation packages of government-owned and -controlled corporations (GOCCs) and government financial institutions (GFIs). “The governing boards of various GOCCs have abused their power even more and granted themselves obscene allowances if not for the executive order. Without the EO, the abuses will continue unabated and public interest will continue to suffer," he said. Petitioner Philippine Health Insurance Corp. (PhilHealth), through its lawyer, Jelbert Galicto, insisted the EO was unconstitutional because it stepped over Congress' powers to dictate the pay of state firms. Drilon, however, said that the EO only covers the directors and trustees of the government enterprises. EO No. 7 is the fourth executive order issued by Aquino that was questioned before the Supreme Court. Senator Francis Escudero, for his part, said Aquino's lawyers should do everything they can to pave the way for the implementation of EO No. 7. "They should do their job in defending the EO issued by President Aquino so that the administration can go through with its plans and policies," he said in a separate interview on Wednesday. Drilon had earlier spearheaded a series of hearings on the alleged excessive pays and bonuses being received by GOCC and GFI officials. The inquiry revealed that some state firms issued excessive pays and bonuses despite owing the national government at least P3.2 billion in unpaid remittances. He then sponsored Senate Resolution No. 17 urging Aquino to suspend these bonuses of the firms' executives. He has also recently filed Senate Bill 2566 that would limit the pay and bonuses of GOCC executives and create a governing body to regulate state firms.—JV, GMANews.TV