House OKs bill limiting GOCC execs' salaries, perks

The House of Representatives has approved a bill putting a cap on the salaries and other benefits received by officials of government-owned and controlled corporations (GOCCs). House Bill 4067, or the “GOCC Governance Act of 2011," was approved on second and third reading Wednesday night, the last session day before Congress takes a month-long break. The measure, sponsored by House Speaker Feliciano Belmonte Jr. and Cavite Rep. Joseph Emilio Abaya, was certified urgent by Malacañang and identified as one of the priority bills of President Benigno Aquino III. “With the passage of this bill, it is anticipated that GOCCs will operate profitably, effectively and efficiently to ensure the state of financial resources it needs to provide for public services," a portion of the bill reads. According to Section 16 of the approved measure, members of the board of directors or trustees of all GOCCs “shall not receive any compensation nor be entitled to retirement benefits" other than their “reasonable per diems." HB 4067 also states that bonuses of GOCC directors and trustees shall be limited “to not more than two months salary of the chief executive officer of the GOCC" and shall be determined based on the individual’s and the GOCC’s performance. The proposed legislation also provides for the creation of the Governance Commission for GOCCs (GCG) under the Office of the President, which will “evaluate the performance and determine the relevance of the GOCC." The GCG shall be composed of the Budget and Management secretary, the Finance secretary, the National Economic and Development Authority (NEDA) director-general and two representatives of the private sector who will be appointed by the President. The Senate last Monday approved its version of the GOCC bill, Senate Bill 2640. After the approval of the bill in both chambers of Congress, a bicameral conference committee will be convened to reconcile the respective versions of the House and Senate. Once the bicameral committee approves the bill, it will be returned to the House and Senate for ratification. It will then be submitted to Malacañang for the signature of the President. Last year, President Aquino, through Executive Order 7, suspended bonuses and allowances of GOCC executives after he revealed in his first State of the Nation Address (SONA) the alleged excessive perks received by officials of the Metropolitan Waterworks and Sewerage System (MWSS) under the previous administration. - KBK, GMA News