Press Release
November 9, 2010


During yesterday's Senate Committee on Finance hearing regarding the Government Owned and Controlled Corporations (GOCC) compensation, Senator Edgardo J. Angara called for a new system for determining the salaries and allowances in the different government agencies.

Yesterday's hearing is the most recent development in the Senate inquiry--which started in the beginning of the 15th Congress--into the unusually large salaries of the board members and top officials in various GOCCs.

Angara proposed the creation of a separate body with the specific task of adjusting and regulating the various compensation packages, including the allowances and bonuses of the current GOCC employees.

"These GOCCs operate under a certain amount of autonomy. Therefore, a standalone, impartial unit is necessary to make sound decisions about the amount of compensation without compromising the GOCC's independence," he said.

According to Angara, who is Vice-Chair of the Finance Committee, government officials and board members' salaries should be calibrated based on their performance and proprietary functions.

"We cannot have a one-size-fits-all system for compensation--we have already seen this kind of system cause such huge inconsistencies. We must strive to avoid further controversy to restore the public's opinion in these government-run institutions," he explained.

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