Wednesday, August 11, 2010

Execs should earn their pay

In the wake of PNoy's challenge to the MWSS board to resign over their excessive pay, Congress will investigate the salaries and allowances of other executives of government-owned and -controlled corporations (GOCCs). Pnoy himself has gone easy on the highly paid execs since his Sona, but the Inquirer picked up a COA report, prompting the Senate/Congress to start the circus of investigations.

I think PNoy has no beef against the seemingly high pay. It's just that he cannot put his trusted men into  high-paying government jobs. His predecessor has stuffed them with her appointees. That is PNoy's concern. How can he run his program of government if he can't trust the men in those agencies?

Can the execs get away with their pay? There's no problem with their pay, they earned it. The problem lies if they're midnight appointees without the requisite qualifications for the job; and if their agency does not contribute at all to the government coffers.

MWSS Central Bank
function regulates Metro Manila water concessionnaires Maynilad and Manila Water the nation's central monetary authority, provides policy directions in the areas of money, banking and credit; supervises operations of banks and financial institutions
board members an unqualified GMA midnight appointee; a brother of a former witness against Mike Arroyo; other friends of GMA respected people in the financial circles, qualified career service executives
what could be PNoy's beef he cannot put his trusted men in -
can PNoy still put his trusted men in the board? not until they resign or their term expires PNoy has appointed 1 (DoF Sec. Purisima)
declared dividends to the government  P53M in 2002; P65M in 2003; P131 M in 2006 (anywhere from 5%-50% of net income) P4.5 Billion in July 2010; P60 Billion since 1993

Now, why are GSIS officials not in the COA report? I suspect COA has not completed its audit of the GSIS, hence they don't appear anywhere in the report. But it is well known that GSIS officials are the highest paid execs. It's chairman is rumored to command close to P10M in salaries alone. COA was booted out of its office space in the GSIS when they called for the Ombudsman to probe irregularities in the agency.

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