Duterte's choice for DOTC post is a squatter-turned-millionaire

Presumptive president Davao City Mayor Rodrigo Duterte announced on Monday that he would be appointing Arthur “Art” Tugade, his classmate from San Beda College of Law, to head the Department of Transportation and Communications. 

Tugade is a renowned businessman whose story has captured the imagination of business watchers because of its dramatic turns.

He is the founder of the Perry's Group of Companies, and he has also been serving as the President and Chief Executive Officer of the government agency Clark Development Corporation since December 2012.

He became chairman and president of several firms, including Yusen Air & Sea Services, Transnational Diversified Group, Inc., TDG Asia Corporation and Harmony Organic Farms Inc., among others.

Tugade had humble beginnings — his childhood was spent in the slum areas of Tatalon Estates in Quezon City.

Life became better after San Beda awarded him a scholarship, which allowed him to study at the school from Grade 1 until he finished law, where he graduated cum laude.

Greatest asset

In a 2013 interview on "Bawal Ang Pasaway," Tugade discussed his basic principle as an employer: "The greatest asset of a company are the employees."

"If they are the greatest asset, like any other asset, you should take care of them,” he said.

“Naging empleyado rin ako. Noon, kapag time na para kumain, ang problema ko ay saan kakain dahil ang mamahal. Nagkaroon ako ng pagnanasa — sana mayroon kaming ganito o ganiyan. Noong nagkaroon ako ng pagkakataong maging employer, lahat ng inisip ko noong empleyado ako na sana mayroon ako, ibinibigay ko sa mga empleyado ko.

“Mas mabuting kumita ka ng piso at hati ang marami, kaysa kumita ka ng isang libo na ikaw lang ang happy. Lahat 'yan ibibigay ko. Kailangan kaya kong ibigay at karapatdapat ang pagbibigayan ko.”

Aside from receiving competitive salaries, the employees of Perry's Group of Companies also enjoy quarterly bonus, monthly grocery allowance, free lunch with unlimited rice, unlimited coffee or tea, transportation allowance, gym facilities, and nursing rooms for the employees' children.

The employees also enjoy a wide range of opportunities, including the chance to become a board member and a stockholder.

“In terms sa trabaho, mahigpit, pero once na maintindihan mo kung bakit siya naghihigpit, ma-a-appreciate mo siya lalo," said Rhoda Delos Angeles, the company's executive vice president for finance who started as an accountant.

Lourdes Grace Mapalad, Tugade's former secretary who now serves as executive vice president, owes her training to the big boss himself.

"Noong pumasok ako kay APT, wala talaga akong alam. Galing ako sa college, and he trained me habang sekretarya niya ako. More than sa pagiging stockholder o monetary value, mas mahalaga ang trust na binigay sa 'yo ng boss mo,” she said.

Government service

The 69-year-old Tugade was appointed by President Benigno Aquino III as the president and chief executive officer of Clark Development Corporation in 2012.

He has since been committed to instilling a positive change in culture by cultivating good values while increasing revenues.

Tugade made sure that he serves as a good example to his employees, and he thought, what better way to start than by humbly accepting his P120,000-salary and waiving other privileges and benefits?

"May mga benepisyo at pribilehiyong kaakibat ng posisyon. Car, driver, communication allowance, rice allowance, dress allowance, at kung anu-ano pang allowance. I waived it all. Entitled ako sa budget na P100,000 a month representation, hindi ko ginagalaw 'yun," he said.

He also started to be strict about working time, scheduling meetings only before or after office hours, and he prohibited his employees from accepting any type of gifts or donations.

"Pumasok ako sa gobyerno hindi dahil sa kita o sahod, kundi para sa adbokasiya ng president—walang corrupt, Daang Matuwid. Binawal ko ang pagtanggap at paghingi... Trabaho lang tayo,” he said.

“Na-culture shock sila. Sabi ko, let's help each other. Over time, nagkapit-bisig naman kami,” he added.

His story, he said, is a clear manifestation of the power of hard work and determination. The man who rose from rags to riches said there is only one secret to success: “Gusto niyo ng karangyaan o gusto niyong umangat ang buhay ninyo, huwag kayong maging pasaway.” —Bianca Rose Dabu/JST/KG, GMA News