WHY SOFT LOAN?

For the past three Collective Negotiation Agreements, we were receiving incentive right after signing but it was not a signing bonus as this term is prohibited under CSC Rules. Usually, it was a one-time benefit approved by the LandBank Board for the specific year of CNA renewal. The amount was variable in the 2nd CNA -P15K and the 3rd CNA- P35K. Thus this benefit was not institutionalized unlike the MIPs which we all receive annually.

During the 4th CNA negotiation, LBPEA requested for the same monetary benefit with apprehension that the GOCC Act might get in the way. True enough, our management panel informed us that their hands are tied by this Act.

The scenario in the past is that our Board had the authority under our charter to approve all our benefits which is the very reason for our windfall benefits in 2008 and 2009. Thus, we were so interested then on the outcome of any Board Meetings if we expect for benefits.

However, the present scenario under the GOCC Act is entirely different. Under this Act, the GCG has the power to recommend for increases in salaries and benefits subject to the approval of the President of the Philippines. Thus this act impliedly repealed our charter and took away the approving authority from our Board.

All increases in our TAB or any economic benefits for that matter are subject to the power of the GOCC Act. Even our management during the negotiation and Mam Pico during the CNA Signing admitted that their hands are tied by this Act.

We recognize the willingness of the management to provide us with this benefit which we all expect to receive but then we also see the difficulty that they are going through on how to legally give us this. Any benefit that will be given in violation of the GOCC Act is not legal and would be susceptible to disallowance by COA. At this time, the GCG has not yet convened and the IRR for this law is not yet finished.

So it is through this soft loan with PFO that our management could legally provide us with this benefit. There was no mention as to which benefit this amount would be deducted in the future. But I am still hopeful that as soon as the GCG would be able to convene perhaps our Board would be able to pass a resolution approving for a one-time benefit for recommendation by the GCG and approval of Pres. Aquino. Thus in this manner our existing benefits would not be affected.

Having mentioned the GCG or the Governance Commission for Government-Owned or -Controlled Corporations, any update on the status of this body created in pursuance of the GOCC Act? Haven't heard about this body which will operate akin to CSC for GOCCs. Parang di pa ata ito na eestablish.

In the interim, while the GOCC Act is already effective but not yet operational because the IRR or GCG is not yet put in place(?), proposals for any increase on perks maybe brought to the attention of the President, he being the authority to approve such. Baka kasi after 3 years pa operational and GOCC Act because it is not self-executing, kailangan pa ang implementing rules na medyo matagal gawin. Just like RA 9510 (An Act Establishing the Credit Information System, and for other Purposes) which was signed into law on Oct. 31, 2008, almost 3 years have elapsed but the Credit Information Corporation which is to be created by virtue of said act is not yet established.

Sir BLITZ:

In reply to your query as to update on the status of the GCG as a body, this is a 5-member Commission so far the President has not yet appointed the 3 members with ranks of Cabinet Secretary as Chairman and two undersecretaries. The two ex-officio members are the Secretaries of DOF and DBM.

In your statement under paragraph 2 which partly states that proposals for any increase on perks maybe brought to the attention of the President, he being the authority to approve such. I have reservation as to submitting it directly to Malacanang for approval. Under JR 4 which was impliedly repealed by the GOCC Act, it has to be recommended by the DBM prior to approval of the President. Under the GOCC Act which took effect last July, recommendation of the GCG is imperative before it goes to the President. In other words, I dont think the President would just approve it without anybody who would do the checking if the benefit is proper.

In contrast to the Credit Info Corp that you were referring to, the GCG is far more important than said corporation as its power is so broad that it could create or even abolish a GOCC. Thus President Aquino is perhaps choosing the best people to fill-in this GCG body.

A law is as important as the others because each addresses distinct fields. They were enacted by authorities in order to control or regulate courses of action of covered environments, e.g. GOCCs for the GOCC Act and credit institutions for RA 9510.