Pork in SSS
Defending the grant of hefty bonuses to the governing board and himself as vice chairman, president and chief executive officer of the Social Security System (SSS), Emilio de Quiros Jr. described the gratuity as a performance bonus “in accordance with the performance-incentives system set by the Governance Commission for Government-owned and -controlled corporations (GCG), which operates under the Office of the President.”
The SSS executive was reacting to criticism from members who decried the grant of P10 million in bonuses to eight members of the Social Security Commission, namely, Chairman Juan B. Santos who received P1.17 million; Emilio S. De Quiros, Jr., P1.04 million; Diana V. Pardo-Aguilar, P1.33 million; Daniel L. Edralin, P1.12 million; Eliza R. Antonino, P968,000; Marianita O. Mendoza, P1.02 million; Ibarra A. Malonzo, P1.41 million; and Bienvenido E. Laguesma, P1.30 million.
As a member of a self-help organization owned by bona fide news workers in Cebu City, I find the decision of the SSC very disturbing in the sense that the gratuities amounted to conflict of interest. The board drew up a policy that directly benefited members, wherein the vice chairman who is at the same time president and CEO was tasked to implement it. Sila’y nagluto og nikaon sa sud-an nga gipanag-iya sa kapin sa 31 milyones ka mga sakop sa SSS. (They cooked and ate the food owned by over 31 million members.)
Upon hearing the news, my favorite wag commented, “This time it is pork in the SSS.”
The grant of bonuses to key officials of government-owned and controlled corporations (GOCCs) and government financing institutions (GFIs) was a hot issue in 2010 after it was learned that executives and employees of GOCCs and GFIs were receiving salaries, bonuses and incentives that outstripped those of other government officials and employees.
Anomalies uncovered in the Metropolitan Waterworks and Sewerage System at the time pressured the Senate led by Sen. Franklin Drilon to inquire into MWSS officials and staff who received as many as 21 kinds of gratuities since 2005.
The controversy also prompted President Benigno Aquino III to issue Executive Order 7, ordering the suspension of all allowances, bonuses and incentives of board members of GOCCs and GFIs. The moratorium had a shelf life of only 3 months on the assumption that the Task Force on Corporate Compensation would have rationalized the salaries and benefits of board members and operating officers and regular employees of GOCCs and GFIs who were exempted from the Salary Standardization Law.
If Sen. Drilon wants to know what happened to legislative measures aimed to curb abuses in GOCCs and GFIs, he should call for a probe on the grant of hefty bonuses to members of the Social Security Commission.
First of all, these SSC officials are already paid handsomely. Every commissioner receives P40,000 honorarium when he or she attends board meetings. The SSC holds two board meetings a month, which means members receive P80,000 monthly honoraria. Commissioners also get P20,000 monthly if they attend committee meetings. All in all, SSC members are assured of receiving P100,000 a month.
In addition, the SSS has a stake in Union Bank and Emilio de Quiros, Jr. sits in the bank’s board as the SSS representative. Reports have it the bank recently granted dividends and bonuses to officials and employees, prompting pundits to ask if De Quiros pocketed the money or gave it back to the SSS.
SSS also has equity in Philex Mining Corp, wherein SSC chair Juan B. Santos sits as vice chairman of the board of directors. According to the disclosure department of Philex, Mr. Santos also sits in three other committees. It goes without saying that on top of benefits and privileges he receives as helmsman of the Social Security Commission, he gets emoluments from the mining firm.
And SSC officials still expect to be rewarded with P1 million more as incentive for a supposed job well done? And what kind of performance are they talking about?
A perennial problem in the SSS pertains to the excessive amount of loans and delinquency issues. In fact, last year the Commission on Audit in fact called the attention of the state-owned pension fund for granting P43.23 billion in outstanding loans. The amount was P11.9 billion higher than the supposed ceiling. The heavy exposure of its loan portfolio notwithstanding, the SSS is also plagued with delinquency issues: 87 percent of SSS receivables are reported to be delinquent.
Congress should look into the affairs of the SSS because failure to address delinquency issues is enough grounds to render the hefty bonuses illegal and immoral.
