Palace defends bonuses received by MWSS execs, says agency now earning billions

(Updated 9:50 p.m.) Although unsure how much bonuses the officials of the Metropolitan Waterworks and Sewerage System (MWSS) received, Malacañang on Monday defended these perks, saying the agency is generating billions in net income now.

 

"Relative po iyong sinasabi nila at saka let me just check lang with them kung talagang magkano iyong bonus na natanggap. But let me be clear that MWSS is generating a net income of billions. It was stated in the SONA," presidential spokesman Edwin Lacierda told reporters at a press briefing.

 

Lacierda issued his remark after MWSS employees criticized several of their board of trustees for reportedly giving themselves bonuses ranging from P300,000 to P500,000 - a practice which they said should have stopped by now.

 

In his first State of the Nation Address in 2010, President Benigno Aquino III lamented that the MWSS board received millions in perks and allowances, including extra bonuses and even grocery provisions.

 

He said MWSS officials get up to a 30th month pay while members of the Board of Trustees receive P14,000 per board meeting, grocery incentives, mid-year bonuses, productivity bonuses, anniversary bonuses, year-end bonuses, financial assistance, Christmas bonus, and a Christmas package.

A "24 Oras" report on Monday showed a document from the Government Commission on Government-owned and controlled corporations (GCG) that said the following MWSS officials received hefty performance-based incentives for 2012: board chairman Ramon Alikpala (P388,800), administrator Gerardo Esquivel (P345,600), and trustees Emmanuel Caparas and Benjamin Yambao (P504,900 each).

 

But Lacierda said this was when MWSS was not making money.

 

"If you look at the first SONA of the President, and you look at the financial statement of MWSS, they were at a loss. So malaki iyong difference na hindi ka na kumikita, meron ka pang bonus," he said. 

 

"Hindi ba parang hindi tama iyon? You’re the stewards of this company, you’re expected to make this company, if not afloat—if not income-generating, at least afloat," he added.

 

But when the Aquino administration came in, he said the MWSS began generating income for the government.

 

"When we came in, MWSS declared a net loss of so many hundreds of millions. By the next year, we already declared a net income of so many hundreds of millions. By last year, we already declared—MWSS already declared billions of pesos in net income," he said.

The Palace, in the television report, said that MWSS suffered a P34-million loss in 2010, but it rebounded with a P333-million net profit in 2011 and P2 billion in 2012.

 

Lacierda likewise stressed that the distribution of bonuses is now covered by the rules and regulations of the Governance Commission for GOCCs.

 

"We can ask si Dean Cesar Villanueva on that but may guidelines po iyan. We already enacted the law on that. How do you govern bonuses relative to your performance as a member of the board of a GOCC [government-owned and -controlled corportions]," he said.

According to the GCG's Memorandum Circular No. 2012-14, GOCCs are entitled incentives when for good performance, good governance conditions, and when they have paid taxes and dividends to government. — Kimberly Jane Tan/Marc Jayson Cayabyab/RSJ/BM, GMA News