PDIC justifies executives' hidden perks, bonuses

MANILA, Philippines - The Philippine Deposit Insurance Corporation (PDIC) justified yesterday the perks and bonuses hidden in so-called reimbursable funds of their executives, saying these were all covered by a code of ethics.

Senate Finance Committee Chairman Sen. Franklin Drilon expressed surprise that the PDIC had a code of ethics that its executives seemed to be using as cover for their perks and big compensation packages.

“We have a code of ethics that says we are allowed to receive such per diems, additional remuneration to the extent of 75 percent. We have a cap of our regular cash compensation. Anything in excess of that should be turned over to the PDIC,” PDIC vice president Imelda Singzon told the committee.

Singzon volunteered the information while being grilled on the salaries and compensation of PDIC president Jose Nograles, who was unable to attend the continuation of the Senate inquiry into the perks and fat commissions of government-owned and controlled corporations (GOCCs) executives.

“Does that validate plunder? In other words, if you amend your code of ethics and you can get it to read no more than 300 percent, would you be proud of that? It is 75 (percent) today. That is your arbitrary number,” Sen. Sergio Osmeña said. “So do you have a right to steal, if it is in the code of ethics?”

Drilon asked the PDIC executives for a copy of the code of ethics, which the committee would use as reference or model for other agencies.

The Senate uncovered that Nograles, a brother of former House Speaker Prospero Nograles, enjoys a basic salary of P2.4 million a year or about P200,000 a month.

Asked if Nograles would be summoned to the Senate, Drilon said there is no need because “we already have enough data.”

Apart from the P2.4 million in basic salary, Drilon revealed that Nograles enjoyed bonuses amounting to about P1.5 million annually for 2008 and 2009,representing the 13th and 14th month pay.

She also noted that PDIC occupies seats at the United Coconut Planters’ Bank (UCPB) and the Export Industry Bank and was entitled to four seats at Philippine Bank of Communictions (PBCom), but nobody is sitting in the Board of Directors of PBCom.

Osmeña also grilled PDIC over the financial assistance it has given to PBCom amounting to P7.6 billion. Singzon also admitted that UCPB is also receiving financial assistance.

Scandalous perks

Amadeo Perez Jr., chairman of the Manila Economic and Cultural Office (MECO), on the other hand, revealed what he described as “scandalous” retirement benefits in his agency.

Drilon noted that the MECO has not been subjected to audit by the Commission on Audit (COA) since its creation in 1975. A foreign auditor, KPMG, has been auditing MECO.

“They collect public funds and receive public funds from passport fees, visa fees, notarial fees of employment contracts of the OFWs, and yet these public funds are not audited by the COA. It is the auditor based in Taiwan who would audit funds belonging to the Philippine government,” Drilon said in a press briefing after the Senate hearing.

After Perez conceded that MECO should undergo audit, Drilon directed COA to do an audit at once.

“This is the opportune time to do things correctly,” he said.

Perez revealed that in 2009, MECO earned about P150 million in revenues.

In 2008, MECO’s revenues also reached about the same amount.