Press Release
February 21, 2016

Drilon says GOCC employees deserve pay hike too
Drilon assures GOCCs capable of funding salary adjustment

In recognition of the significant contributions of the Government Owned and Controlled Corporations (GOCCs) to the country's overall economic growth, Senate President and re-electionist senatorial candidate Franklin M. Drilon today said that it is only timely and proper that the compensation scheme for state-run agencies be adjusted to competitive levels.

Drilon assured that the government will not be burdened by the proposed increase since the funds will not be sourced from the national coffers, but from the income of the GOCCs.

"From being the milking cows of unscrupulous bureaucrats, our GOCCs are now active and effective revenue source which contributed to the country's sound and stable financial condition throughout the administration of President Aquino," Drilon said.

Drilon is the author of the landmark Republic Act No. 10149 or the GOCC Governance Act of 2011 which put forward the necessary reforms in the GOCCs.

"The P68.13 billion dividends that were remitted by the GOCCs to the government from 2012 to 2014 helped fund critical government projects and services," Drilon stressed.

The four-time Senate President said that the GOCCs will need approximately P6 billion for the salary adjustment which they can fund from their own earnings, noting that GOCCs' revenues are consistently and significantly increasing each year.

"Our GOCCs today are capable of financing any increase in their compensation package given their remarkable performance in the past years, which was made possible by the reforms that we initiated in 2011," Drilon added.

"If we are to look for a reason to justify an increase in the take-home pay of the GOCC workers, then we only need to look at how our GOCCs became instruments of national progress throughout the administration of President Aquino," he said.

He added that one of the most effective ways to ensure the efficiency of GOCCs and prevent corruption in the state-run agencies is "to ensure a reasonable and appropriate remuneration schemes for them."

Drilon said that the Governance Commission on GOCCs is mandated by law to conduct a periodic review of the Compensation and Position Classification System for GOCCs taking into account their overall performance and the current economic condition.

"Therefore, I am reiterating my call for the President to authorize an increase in the compensation of personnel in the GOCCS. We should foster an environment for our state-owned enterprises that commensurately rewards efficiency and productivity," he concluded.

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