CLARK
FREEPORT – The Performance-Based Incentives (PBIs) released to Clark
Development Corporation (CDC) officials are “in accordance with applicable
laws, rules and regulations.”
The
CDC maintained that the amount of the PBI that were released to some of its
Board of Directors and other officials is in line with GCG Memorandum Circular
No. 2012-14 or the “Interim Performance-Based Incentive (IPBI) system for
appointive Directors/Trustees of GOCCs covered by R.A. NO. 10149).”
Republic
Act 10149 is otherwise known as “An act to promote financial viability and
fiscal discipline in Government-Owned or Controlled Corporations and to
strengthen the role of the state in its governance and management to make them
more responsive to the needs of public interest and for other purposes.”
According
to the GCG (Governance Commission for Government-Owned and Controlled
Corporations) memorandum, “Section 23 of RA 10149 mandates the Commission to
determine the ‘compensation, per diem, allowances and incentives of the members
of the Board of Directors/Trustees of the GOCCs…, using as a reference, among
others, Executive Order No. 24 dated February 10, 2011.’”
The
CDC clarified that EO 24, or the “Prescribing rules to govern the compensation
of members of the Board of Directors/Trustees in Government-Owned or Controlled
Corporations including government financial institutions,” was the basis for
the amount of the PBI released to some of its officials.
“It
was not the CDC but existing government laws that had determined the amount of
the PBI given to our directors and other officials,” the CDC stressed.
In
Item 1.1 (a) of the GCG memorandum, or the Conditions Precedent to Entitlement
to PBI, the PBI shall only be allowed if “The GOCCs have met the requisite 90%
rating in their MFOs (major final output) for Year 2012, which shall be
validated pursuant to certifications issued by the GOCCs under the sworn signatures
of their Chairpersons and Presidents, to be submitted not later than 30
November 2012.”
In
relation to this, Item 2 (Entitlement), states that “The grant of the PBI shall
be based on a percentage of the Total Actual Annual Authorized per diems as
provided under Sections 9 and 10 of EO 24 (s. 2011) received by a
Director/Trustee…”
According
to Item 2, if the Major Final Output (MFO) Target Achievement is 100%, the
Incentive Entitlement per Director/Trustee is 100% of the Total Actual Annual Authorized
per diems received; for a 95% MFO rating, the incentive given is 90%; a 90% MFO
corresponds to only 80%. No incentive entitlements would be given to those who
got an MFO rating which is below 90%.
As
for the CDC, the corporation’s MFO rating is 96.82%, which allows its officials
to get a 90% incentive entitlement.
Aside
from the 96.82% MFO rating, the other CDC performance targets include
employment, 94.29%; economic development, 132.85%; Corporate Social
Responsibility, 63.33%; support to operations, 97.50%; and general
administration and support services, 830.76%.
On
the Key Result Area of National Government, the CDC accomplishments rated
105.27% in economic development and 98% on human development and poverty
alleviation.
Notwithstanding
the MFO ratings, the CDC also stressed that the corporation has submitted
documents required by EO 24, which includes a “Board resolution authorizing the
grant of IPBI to the GOCC’s appointive Directors/Trustees in accordance with
applicable laws, rules and regulations,” among others.
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