Palace extends suspension of allowances of GOCC, GFI execs

Malacañang has extended by one more month its suspension of the allowances, bonuses, and other perks received by top executives of government-owned and -controlled corporations (GOCCs) and government financial institutions (GFIs). Executive Order (EO) No. 19, which President Benigno Simeon "Noynoy" Aquino III signed December 30 last year, extends the suspension of perks received by members of GOCCs' and GFIs' board of directors or trustees until January 31 this year. EO No. 19 extends the suspension that Aquino originally imposed in Executive Order No. 7 that he issued in September. In EO No. 7, Aquino suspended until Dec. 31, 2010 the allowances, bonuses, incentives and other perks of GOCC and GFI board of trustees or directors—except "reasonable" per diems—pending the issuance of new policies and guidelines on their compensation. Aquino—who has vowed to rid the government of corruption—issued the directive after he revealed in his State of the Nation Address that top officials the Metropolitan Waterworks and Sewerage System (MWSS), a GOCC, received supposedly excessive bonuses during the Arroyo administration. In EO No. 19, Aquino said he is extending the suspension by one month because the Task Force on Corporate Compensation (TFCC) is still reviewing the remuneration granted to these officials. "Considering the complexity of issues and number of GOCCs and GFIs, there is need to further review the grant of all remunerations and discretionary funds of the board members," Aquino said in EO No. 19. Philippine Health Insurance Corp. (PhilHealth) lawyer Jelbert Galicto has challenged, in a personal capacity, the constitutionality of EO No. 7. 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." Aquino, however, stood by his order suspending the bonuses and allowances of top GOCC and GFI officials. – VVP, GMANews.TV