ASEAN KEY DESTINATIONS
Philippines plans to remove financial
A task force is reviewing 14 of the 178 GOCCs and GFIs.
Since state-owned firms and their employees already enjoy competitive salaries, the government would no longer grant them other "unconscionable incentives," Abad said.
"The only exception being is if they would be able to accomplish beyond their metrics. This means, they were able to deliver way beyond what is expected of them since achieving that would essentially translate to more government revenues," he said. Otherwise, GOCC executives "should make do of what they basically earn," the DBM chief said.
With respect to other compensation packages that GOCCs will be entitled to, Abad said that the task force agreed to determine the peculiarity of a GOCC or GFI, the necessity to keep the compensation attractive to keep highly competent executives, and to set standards on government performance to make them at par with that of the private sector's best practices.
"We want to set a standard that would not only professionalize the government's juridical entities, but would likewise improve their performance in terms of generating money for the government, which would essentially redound to the public," Abad said.
Last September, President Benigno Aquino 3rd issued Executive Order 7, which is aimed at putting a check on the excessive compensation packages of GOCC and GFI officials and employees.
Besides their generous compensation packages, several GOCCs also enjoy state subsidies.
In the first 11 months, the national government gave out a total of P16.323 billion in financial support to state-owned firms, or three percent lower than the P16.84 billion last year.
In November alone, the government disbursed P367 million, or 84 percent lower than last year's P2.32 billion.
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