We wish to clarify certain issues about the allegedly precipitate termination of the recently concluded inquiry of the Senate finance committee on the excessive and unwarranted bonuses in Government-Owned and Controlled Corporations and Government Financial Institutions.
Finance committee chairman Senator Franklin Drilon is not protecting some members of state enterprises, as alleged by former Senator Ernesto Maceda in his September 16 column. We would like to emphasize that the purpose of the inquiry is not to expose the scandalous allowances, but to reform the excessive perks enjoyed by the governing boards of GOCCs and GFIs through a remedial law that will put a stop on the scandalous bonuses.
The committee conducted six hearings and probed more than 50 GOCCs and GFIs including PAGCOR, DBP, GSIS and the BSP. By the time the inquiry was terminated on September 13, the committee had gathered enough information on the subject for it to craft the proposed “Public Enterprise Corporate Governance Act”.
In the course of inquiry, the good senator successfully appealed to the BSP to remit approximately P9.3 billion in back dividends to the National Treasury and persuaded the DBP Board to follow suit, in line with the focus of the committee which is to require the state firms to comply with their obligation under the law to remit dividends to the government. Further, the Senate unanimously passed Resolution No. 17, which formally asked President Benigno Aquino to suspend the bonuses and allowances enjoyed by the governing boards of GOCCs and GFIs. In response to this, President Aquino issued Executive Order No. 7, favorably acting on the Senate Resolution and suspending the grant of allowances, bonuses, incentives, and other perks to members of the governing boards of GOCCs and GFIs, except reasonable per diems, until December 31, 2010.