Press Release
August 25, 2010


During the Senate Finance Committee held yesterday to review the compensation package received by Government-Owned and Controlled Corporations (GOCC) officials, Senator Edgardo J. Angara stressed that there should be equity in GOCC compensation, barring any prejudice in the review of their salaries.

"The GOCCs' compensation should be rationalized. It should be reasonable and able to attract and retain the best that we have. That's the main rationale," explained Angara.

The hearing was headed by Committee Chair Franklin Drilon and co-chair Angara.

Angara, chair of the Finance Committee during the previous Congress, stated early in the proceedings that the committee had no prejudice in the search for the truth.

"We are not starting the hearing with the presumption that you [GOCCs] are guilty, I think that's going to be wrong. We are going to find a way to bring out the compensations scheme of the corporate sector of government into the open. We'll bring light into it, so that we can discuss it reasonably and intelligently," said Angara.

He explained that the practice of salary exemptions began as a way for the government to recruit "the best and the brightest" of the country.

"So, we want to do equity in compensation. That is the only way, I think, we can extract the best out of everyone in this country and probably - and get the best public service people in the Philippines," Angara said.

It was revealed earlier that 26 government corporations currently enjoy this exemption, out of a total of 156 GOCCs. Angara then summarized that the goal of yesterday's hearing was to establish standards to gauge the compensation packages in question.

"By what standard will you judge if a system of allowances reasonable?" he asked.

Angara acknowledged that some of the funds credited to individual employees were in fact allocations for the entire office's expenses. These funds, with the proper disbursement process and paperwork, is an internal matter for the company.

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