Tough task of image rebuilding at DOT

MANILA, Philippines - Arthur Tugade has his work cut out for him.

Named to the Department of Transportation that has been roundly criticized for the sorry state of the Metro Rail Transit, congestion and airport scams, shortage of license cards and car plates and the worsening traffic in Metro Manila that has been declared a crisis, Tugade has committed to bring change to the DOT. 

Tugade, who served as president and chief executive officer of the Clark Development Corp. (CDC) in the previous administration, said he intends to transform the agency through practices he carried out at the CDC that also served him well as a kid growing up in the slums of Tatalon in Quezon City.

A successful self-made businessman, he has since moved to the affluent area of Alabang, Muntinlupa. His company, Perry’s Group of Companies, is involved in logistics, tourism and hospitality, trucking, equipment leasing, fuel distribution, retail and farming.

His first order was for employees to be punctual for work and for meetings. 

During his stint at CDC, he had to wake up at 4 a.m. to get to his office before 7 a.m. and he would leave after 9 p.m.

Officials who came in late were warned to arrive early next time. “Huwag niyo uulitin… T*** ina, sa susunod, yari kayo sa akin (Don’t do it again, next time you’ll really get it),” he said. 

Department meetings should also be conducted before or after office hours to ensure the necessary tasks were delivered.

Tugade also wants employees to provide customer service with a smile, the kind that would give confidence in government service. 

He has instituted a strict  no-gift policy – at any time, day, week, month or year while in government service. 

Employees of the department are likewise not allowed to accept invitations to lunch or dinner and in cases where they cannot decline, they should pay for their own meal. 

He was initially ridiculed and laughed at for these practices, but his efforts and the cooperation of employees bore fruit not only in terms of improving the image of the subsidiary of the Bases Conversion and Development Authority responsible for managing the Clark Freeport Zone, but also in making it more profitable.

Under Tugade’s leadership, CDC reported its best financial performance ever with net earnings hitting P697 million, revenues reaching a record P1.55 billion and the cash position at P2.33 billion last year. 

CDC’s net income, which reached a total of P1.49 billion for the years 2013 to 2014, is also higher than the combined net earnings of P1.44 billion covering the period 1996 to 2012.

Last year, CDC was recognized in the Asia CEO Awards as it bagged the Executive Leadership Team category, beating out other government agencies as well as major  corporations.

Tugade was among the finalists for the Global Filipino Executive of the Year category. 

In cleaning up the image of the department, Tugade is uncompromising with corruption and would act fast against erring officials who place the efforts of the entire agency at risk. 

“We cannot allow a few to destroy the total and full image of DOT. Iyong mga nandidiyan sa mga kaugalian na iyan (those engaged in old practices), I am warning you now. I will be very unforgiving. For so long as I have the document, your days are numbered,” Tugade said. 

Despite the tough talk, Tugade’s intention is not to instill fear but to inspire employees to deliver. 

“I hope that we talk not in an atmosphere of fear and threat but rather, we talk under the policy and commitment to serve this country and serve it well. I still believe in the goodness of man and I will always believe in the goodness of man,” said Tugade, a lawyer who was the classmate of President Duterte at the San Beda College of Law. 

Lilia de Lima, who served as the director general of the Philippine Economic Zone Authority and had a chance to work with Tugade, thinks the secretary is the right man for the job.