June 7th, 2011 
davidguide Manila, Philippines (AHN) – Philippine President Benigno Aquino III has signed a law ending excessive, unreasonable and unnecessary salaries and bonuses for officials and employees of government-owned corporations and banks.
The Government-Owned and Controlled Corporation (GOCC) Governance Act of 2011 signed Monday also limits the terms of GOCC officials to one year and creates a governance commission for GOCCs that will change the compensation and remuneration system for such institutions.
The law further provides that GOCCs maintain a website indicating its audited financial statements, budget and compensation package.
The law covers 140 state-run corporations. Excluded from coverage are the central bank, state universities and colleges, cooperatives, local water districts and research institutions.
The law was conceived in response to excesses of GOCC officials. For example, board members of the Government Service and Insurance System, which manages the pension fund for state workers, were paid $138,776 or 6 million pesos annually and they only attend two board meetings a month.
At the Metropolitan Waterworks and Sewerage System, executives and employees receive up to 25 months’ bonus.
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