Noy hopes SC will rule on people's side on GOCC executives' perks

SAN MIGUEL, Tarlac, Philippines – President Aquino expressed hope yesterday the Supreme Court would rule on the side of the people on Executive Order 7 suspending the perks and privileges of officials of government-owned and controlled corporations (GOCC) and government financial institutions (GFI).

“I’m hoping and I always maintain that, at the end of the day, as the final bastions of democracy, they should really be (with) us in the service of the people,” he said.

“Isn’t it that laws are made not for you to be served by the people but for you to serve the people?” speaking to reporters after voting for barangay officials, Aquino said the officials are supposed to safeguard GOCCs and GFIs for the people.

“For me, this is very basic, GOCC, what is a GOCC?” he asked.

“Government-owned and controlled corporations. What is the government? Isn’t that by the people?

“If you’re from the private sector and your company’s condition improved, go ahead and declare dividends, that’s okay. But this one (GOCC), you don’t own this.”

A lawyer of Philippine Health Insurance Corp. in Butuan City has asked the SC to declare as unconstitutional EO 7.

Mr. Aquino stopped raises in the salaries and other benefits of board members, executives and regular employees exempted from the Salary Standardization Law when he issued the order last month.

In a petition for certiorari and prohibition, Jelbert Galicto said that Mr. Aquino was ill-advised in signing EO 7.

“(It) is null and void for lack of legal basis,” he said.

Galicto said the issuance of EO 7 infringed on the legislative powers of Congress since the order “is by substance a law.”

“(The order) is a derogation of congressional prerogative and is therefore unconstitutional,” he said.

EO 7 should be declared void and unconstitutional for being whimsical, arbitrary, unreasonable and for violating substantive due process, Galicto said.

However, Mr. Aquino said in the case of PhilHealth, it declared that it supposedly exceeded reserves stated by law.

“So instead of universal healthcare provider, it stands as government financial institution,” he said.

“Once their profits increase, the dividends will come from there. So let me repeat, we’re not doing anything new, we are just completing the process wherein in 2001, an executive order had been issued with the same idea, limit the compensation package for those appointed in government.”