PNOC, SBMA execs to get salary cuts

The Philippine National Oil Co. (PNOC) announced yesterday that it will reduce the salaries of its senior officials.

PNOC president Thelmo Cunanan, in a statement, said employees occupying senior positions in the company and all subsidiary corporations will undergo pay rationalization in compliance with President Arroyo’s orders.

The PNOC’s largest subsidiary, the Energy Development Corp. (EDC), became controversial recently when it was reported that Sergio Apostol, its chairman, president and CEO, earns P7.3 million annually.

Eduardo Maxino, EDC vice president for corporate services, told a meeting of PNOC senior officials that Apostol would fully comply with the President’s order by taking a cut in his salary.

Other officials of PNOC subsidiaries involved in exploration, coal, petrochemical and shipping also agreed to take pay cuts.

Another government agency has vowed to comply with the President’s order. The Subic Bay Metropolitan Authority (SBMA) said in a statement that its chairman and other officials would take cuts in their salaries.

As this developed, Senate President Aquilino Pimentel sought yesterday a full disclosure of the identity, nature of work and compensation of all foreigners hired or retained by the government as consultants.

Pimentel said foreign consultants are usually paid "outrageously huge" fees and allowances that eat up a huge part of the funding for programs or projects for which they were hired.

"Transparency is needed so the public will know whether or not the fees paid these consultants are commensurate with the benefits that the government is supposed to get from such consultancy contracts," he said.

Pimentel filed Senate Bill 851 requiring all branches and agencies of government, including government corporations and their subsidiaries to provide Congress the following:

• Identity of foreign consultants.

• Consultant’s nature of work and compensation, including other benefits.

• The terms and conditions of the consultancy agreement entered into by the government office with the consultant.

Pimentel said such information must be submitted to Congress within six months once the bill is enacted into law. Those who fail to comply face penalties of fines and imprisonment.

He stressed that the public deserves to know how much of taxpayers’ money is being paid to consultants.

"Our people should be appraised whether or not the services of these consultants are indispensable and cannot be rendered by our local experts," he said.

Pimentel said the hiring of foreign consultants, as a matter of practice, is being imposed by foreign governments or financing institutions that provide grants or loans to local projects even if the job can be adequately done by Filipino professionals.

Under such circumstances, he noted that the expenses on foreign consultants unnecessarily drain the funding for the projects.