FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No__ 2993

EXPLANATORY NOTE

President Benigno C. Aquino in his first State of the Nation Address stated
that Metropolitan Waterworks and Sewerage Systems (MWSS) officials and
employees receive compensation and bonuses that are highly anomalous in the
sense that the amounts they receive are very exorbitant. He cited that the MWSS
employees have “mid-year bonus, productivity bonus, anniversary bonus, year-
end bonus, at Financial Assistance. May Christmas bonus na, may Additional
Christmas Package pa. Kada isa sa mga ito, nobenta'y otso mil.”

Further, the Commission on Audit (COA) has released a report showing
that top officials and board members of government-owned and- controlled
corporations (GOCCs) and government financial institutions (GFIs) have
“excessive and unwarranted” salaries, allowances, bonuses, and other perks.

It is not right that these officials and board members are living the high life
while majority of the population of the country are living below the poverty line.
Even the employees of the GOCCs and GFls that these officials manage are
clamoring for more reasonable and decent salaries.

It should be remembered that public office is a public trust. Thus, a law
has to be passed that will rationalize/standardize to a reasonable level the
compensation package of the top officials and board directors of GOCCs and
GFls, and thus promote public trust and protect public fund.


Further, the following are the twenty highest paid officials in 2009, who
have received gargantuan salaries and benefits according to COA:

1. Arreza, Armand D. (SBMA) —- P26,865,923.20
2. Ricafort, Benigno (CDC) -- 14,506 ,466.74
3. Garcia, Edgardo F. (DBP) — 12,718,942.61
4. Tetangco, Amando Jr. (BSP) — 10,772,830.14
5. Bitonio, Benedicto Ernesto Jr.R.(DBP)-  9,309,042.75
6. Geronimo, Rolando (DBP) —- 9,080,633.12
7. Abaya, Narciso L. (BCDA) — 7,654,597.14
8. Templo, Horacio T. (SSS) — 7,073,488.92
9. Samia, Armando O. (DBP) — 6,983,533.14
10. Quirino, Ma. Therese (DBP) 6,753,136.41
11. Puno, Isaac Ill S. (BCDA) — 6,010,701.40
12. Guevarra, Jesus Il (DBP) — 5,672,395.45
13. Suratos, Armando L. (BSP) — 5,525,347.73
14. Maldia, Wilfredo C. (LBP) — 5,473,755.94
15. Sarmiento, Andres C. (LBP) — 5,406,907.99
46. Garcia, Oscar O. (MWSS-CO) — 5,401,391.22
17. Tejada, Benilda (DBP) — 5,216,276.46
18. Allado, Diosdado Jose M. (MWSS-CO) -- 4,969,239.59
19. Selispara, Cresencio R. (LBP) — 4,917,216.99
20. Guinigundo, Diwa C. (SSP) — 4,889,136.21

This seemingly anomalous situation arises primarily because of the
powers vested in the boards of these institutions to determine and fix their own
compensations and benefits,” it said.

They were able to increase their salaries and bonuses because the
charters of these GOCCs and GFls basically give their Board a free hand in
determining the right amount of compensation the officers and employee receive.

In view of the foregoing, immediate passage of this bill is earnestly
requested.

RUFYS B. RODRIGUEZ

MAXIMO B. RODRIGUEZ, JR.


FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Honorable Rufus B. Rodriguez and
Honorable Maximo B. Rodriguez, Jr.

AN ACT
PROVIDING FOR A CAP ON THE SALARIES AND BENEFITS RECEIVED BY
OFFICIALS OF GOVERNMENT OWNED AND CONTROLLED
CORPORATIONS (GOCCS) AND GOVERNMENT FINANCIAL INSTITUTIONS
(Gis).

Be it enacted by the Senate and House of Representatives of the
Philippines in Congress assembled:

SECTION 1. Declaration of Policy. — It is the policy of the State to maintain
honesty and integrity in the public service and take positive and effective
measures against graft and corruption.

It is also a policy of the State to ensure that its officials bear in mind that
public office is a public trust and that public officers and employees must, at all
times, be accountable to the people, serve them with utmost responsibility,

integrity, loyalty, and efficiency; act with patriotism and justice, and lead modest
lives.

SEC. 2. Salary Cap. — In no case shall the salary of the chairman, president,
general manager or administrator, the board of directors and other officers of
government-owned or controlled corporations and financial institutions exceed
Salary Grade 30 as determined by Republic Act 6758 otherwise known as the
“Compensation and Position Classification Act of 1989" as amended by Joint
Resolution No. 00004, dated June 17, 2009.

SEC. 3. Cap on Allowances, Bonuses and other Perks. — The chairman,
president, general manager or administrator, board of directors and other officers
of government-owned or controlled corporations and financial institutions and
other officials shalll be limited to the following benefits:

a. 13 month pay which is mandatory;

b. 14" month pay depending on the savings of the GOCC or GFl

they are connected with;
¢. Christmas Bonus — Ten Thousand Pesos (P10,000);


d. Cost of Living Allowance - Ten Thousand Pesos
(P10,000)/month

e. Amelioration Allowance/Food Subsidy — Five Thousand Pesos
(P5,000)/month

f. Clothing Allowance — Twenty Thousand Pesos (P20,000)/Year

g. Representation Allowance — Ten Thousand (P10,000)/month

h. Transportation Allowance for those without Official Vehicles —
Ten Thousand Pesos (P10,000)/month

i. Medical Premium Allowance — Two Thousand Pesos
(P2,000)/month

j. Five Thousand Pesos (P5,000) Per Diem for every board
meeting attended: Provided, That it should not exceed one (1)
regular board meeting and two (2) special board meetings in a
month.

No other bonus and allowance, however termed or named shall be
allowed. All other bonuses and allowances, however termed or named, that are
being granted are hereby withdrawn. They shall not be entitled to further food or
grocery subsidy, productivity bonus, anniversary bonus, financial assistance,
Christmas package or any other allowance. They shall likewise not receive any
honoraria given in line with their official functions such as memberships in any
committee within the GOCC or GFI where they are connected nor any honoraria
from any other office where they sit as ex-officio members.

SEC. 4. Separability Clause. — If for any reason, any section or provision of this
Act is declared to be unconstitutional or invalid, the other sections or provisions

thereof which are not affected thereby shall continue to be in full force and
effect.

SEC. 5. Repealing Clause. — All laws, decrees, orders, rules or regulations or
parts thereof inconsistent with the provisions of this Act are hereby repealed,
amended, or modified accordingly.

SEC. 6. Effectivity. — This Act shall take effect fifteen (15) days after publication
in any two (2) national newspaper of general circulation.

Approved,