Clark execs got P6.3M in excess perks, says COA

The board of directors of the Clark Development Corp. received P6.3 million in excess benefits and allowances in 2010, an amount that the state-owned company could have saved instead, according to the Commission on Audit (COA).

The COA said the directors received allowances in amounts more than what was allowed despite the issuance of Executive Order No. 7 in September last year, which rationalized the perks at government-owned and -controlled corporations and government financial institutions.

In its 2010 report on the CDC, the audit agency said the maximum amount that a board director is allowed to receive is P20,000 a month, or P240,000 a year based on Administrative Order No. 103 directing government agencies to adopt austerity measures.

AO 103 requires all GOCCs and GFIs to limit the amounts of honoraria and other allowances to officials and members of commissions, board, councils and similar entities who are not compensated but are given honoraria instead. It also requires the suspension of the grant of new or additional benefits such as per diems, honoraria, housing and miscellaneous allowances or car plans to nonfull time officials and employees.

But the COA said the CDC failed to follow the P20,000 limit, since the directors received much more than this.

“Although the payments of Rata (representation and transportation allowance) and other allowances have been suspended with the issuance of Executive Order No. 7 dated Sept. 8, 2010, the per diems which have been paid to the directors still exceeded the cap on the monthly compensation provided under AO 103,” the audit agency said.

EO 7 also suspended all allowances, bonuses and incentives of board members of government-owned and -controlled corporations, including government financial institutions, until Dec. 31, 2010.

The CDC directors received a combined total of P8.863 million in the form of per diems, Rata, car plan subsidy and reimbursement of health care benefits, the COA noted.

“Had the provisions of the AO been followed, the amount of P6.3 million could have been saved,” it said.

It recommended that the CDC comply with AO 103 pending the issuance of the guidelines on the rationalization of board benefits and allowances, and stop payments in excess of the allowable amounts.

President Benigno Aquino III criticized the compensation received by officials of GOCCs and GFIs, in his first state of the nation address (Sona), describing it as excessive.