COA disallowed DBP extra pay

Likely because he had just resigned as transport secretary, Ping de Jesus was very relaxed over cocktails Friday. In casual wear and sandals, he looked more like a middle-aged NGO worker than the 76-year-old veteran of two cabinets. One-third of the talk was of personal matters, another third official, and a third confidential on his request. Excerpts:

• His advice to his successor about running the mega-bureaucracy

“You cannot do everything, so choose your priorities. My management style of tutok-pukpok worked: setting goals and deadlines, then making sure they’re met.”

• When to launch Public-Private Partnerships, eight of ten of which are under his department

“The railway from Manila to Naga should start by month’s end, to Legaspi by yearend, then to Sorsogon. The MRT/LRT bidding is in mid-July. In the pipeline are the expansion or replacement of airports in Puerto Princesa, Bohol, Iligan, and Legaspi.”

• Why negotiate with Takenaka Corp. (of Japan) to complete the NAIA-3, when the Supreme Court has voided the mother contract of Piatco-Fraport?

“The MIAA has a valid contract with Takenaka. We cannot bid out the completion to another constructor because nobody would join or issue warranties for the 96-percent works that Takenaka already made.”

• The roll on-roll off port contract that the PPA stopped

“I submitted my recommendations to the President two weeks ago.”

• How about land transport?

“Concentration was on driver proficiency, vehicle road-worthiness, and removing colorum (un-franchised) utilities.”

• Why ignore unsolicited proposals and set only solicited biddings, which take a lot of time and money to prepare?

“We revisited that policy. Unsolicited proposals earned a bad name in the past administration.”

• His plans after retirement from public service

“I’d like to offer my help to the mayor of my hometown, Bacolor, Pampanga, in livelihood projects. I will also focus on my rice, fruit, and duck farm there.”

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Philip Ella Juico is distressed. For being the husband of charity sweepstakes head Margie Penson, he’s being dragged into ubiquitous government intrigues. This, when all the ex-cabinet member of Cory Aquino and Philippine Sports Commission chairman is doing is promote the two sports closest to his heart.

Juico is in the news lately for promoting bicycle commuting and delineation of bike lanes on main roads. The idea is not novel; cities like Marikina, and zones like the Cultural Center Complex at the Manila-Pasay boundary already have it. What makes Juico come on strong is his current presidency of the Integrated Cycling Federation, which is aiming to restage the yearly Tour ng Pilipinas competition of the ’60s-’90s. A golf buff, he also has restored the Philippine Open to the Asia Tour, and heads the premiere Wack-Wack Golf and Country Club. But he’s also being accused of endorsing this or rejecting that sweepstakes project, when he swears to not meddle in his wife’s work.

The former dean of De La Salle University graduate school is not the only decrier of nasty talk. Former congressman Peping Cojuangco, uncle of President Noynoy Aquino, lamented recently alternating rumors of lobbying for juicy deals and falling out with his nephew.

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It wasn’t only the board of directors of the Metro Waterworks and Sewerage System that awarded itself super-duper extra pay and perks. Or the Clark Development Corp. Or the Social Security System.

Begging mention, because it beat the MWSS’ whopping 25 months’ pay and bonuses, is the Development Bank of the Philippines.

The DBP had 27 extra pay and perk items, on top of the per diem of directors and basic salaries of top executives. These were listed in pay slips as: Anniversary Bonus, Additional Compensation, Bonus Differential, Children’s Allowance, Christmas Bonus, Children’s Allowance Differential, Cash Gift, Family Allowance, Officers’ Allowance Differential, Hospitalization Benefits, Productivity Incentive Award, Longevity Pay Differential, Medicine Allowance, Night Differential Pay, Night Differential Pay Adjustment, Overtime Pay Differential, Overtime Pay, Personal Economic Relief Assistance, Representation Allowance, RATA Differential, Basic Salary Differential, Transportation Allowance, Variable Pay, Others-1, Others-2, Others-3, and Midyear Bonus. There were also special funds for car loans, maintenance and repair; housing assistance; and personal insurance.

Some of the extra pay mimicked those collectively bargained for by DBP employees. Others were exclusive to selected directors and top execs, sources said.

The beneficiaries withdrew the additional pay from a special private bank account in Makati, the sources added. Opened as far back as 2006, the account was closed by one of them in November last year to elude detection by the new set of directors.

Allegedly selected directors’ extra compensations were awarded via board resolutions in March and August 2006. Those of officers, and the retention of a secret bank account, were by executive committee action in September 2005.

The Commission on Audit issued several notices of disallowance against the extra rewards and benefits. Supposedly these were in breach of laws and internal rules. The DBP top brass allegedly defied the COA.

To get around the COA rulings, some directors on April 22, 2010, reportedly got then-President Gloria Arroyo to make the extra pay and perks retroactive — to 1999. There’s a hitch, though. The presidential grant was made during the election period. Government hiring and firing, promotion and demotion, and pay hikes and cuts were banned then.

In August 2010 the COA released a partial list of highest paid government execs. The 41 execs’ pay in 2009 ranged from P27 million to P4.2 million, 23 to 3.5 times that of the President of the Republic’s P1.2 million. Seven of them were from the DBP: Edgardo Garcia, P12.7 million; Benedicto Ernesto Bitonio, P9.3 million; Rolando Geronimo, P9 million; Armando Samia, P6.9 million; Therese Quirino, P6.8 million; Jesus Guevarra, P5.7 million; and Benilda Tejada, P5.2 million.

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