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MANILA, Philippines?(UPDATE) A "scandalous" retirement package of P600,000 a year for members of the board of the Manila Economic and Cultural Office (Meco) after serving only two consecutive years has been exposed at a Senate hearing.
At a joint hearing by the Senate committees on finance and government corporations on Wednesday, Meco chairman Amadeo Perez confirmed that a member of the board, after serving two consecutive years in the company and "terminated" on the third year, was entitled to receive a compensation of P600,000 per year.
"Yes, in fact, that to me is scandalous, your honor," said Perez, responding to Senator Franklin Drilon's queries.
?So after two years in the board, you get a retirement pay of P1.2 million?? asked Drilon.
Perez, who just assumed office a month ago, said the retirement package was provided for in a resolution that was approved by its own board.
?And by your own assessment, Mr. Chairman, this is really scandalous?? the senator asked again.
?Yes, very scandalous,? Perez answered, to which Drilon retorted, ?Hindi lang scandalous. Siguro major major scandal ito (Not only scandalous. Maybe this is a major major scandal).?
In fact, the Meco chairman pointed out that the retirement package was similar to a total of P1.2 million he received after his 35 years in public office?as mayor and congressman.
The new chairman of Meco promised to correct this ?scandal.?
Perez also disclosed that Meco was not subject to audit by the Commission on Audit and has not remitted a single centavo to the national government despite its earnings of P150 million in 2009 alone and its remittances to its main office in Manila of $3.3 million savings from 2008 to 2009.
Perez said Meco was not subject to audit because this has been the practice from the time of its ?inception."
"But I will not object to a law that would require (us to be subject to audit by the CoA)," he said.
But Drilon said there was no need for a new law because the Constitution already provides that all government-owned and -controlled corporations are subject to audit.
By his own computation, Perez said Meco should have remitted only about P100 million to the national government for the last five years, citing a decline of Taiwanese coming into the country.
Part of the agency's mandates is to look after Filipino nationals who are employed in Taiwan. It earns from passport, visa, and notarial fees.
