MANILA, Philippines – Following complaints of the Metropolitan Waterworks and Sewerage System (MWSS) Labor Association decrying fat bonuses of 4 MWSS trustees, Malacañang said the P300,000 to P500,000 bonuses are legal.

In a statement, Presidential Spokesperson Edwin Lacierda confirmed 4 directors “will be receiving a Performance-Based Incentive (PBI),” and that the amount is in accordance with Government Owned and Controlled Corporations (GCG) rules.

“These bonuses are consistent with the guidelines set by GCG Memorandum Circular 2012-14, stating that incentives shall be based on how much the GOCC has met its target achievements and the attendance of the Director,” the statement said. “For 2012, MWSS has recorded a net profit of 2 billion pesos.”

The statement said the executives have yet to receive their bonuses.

This is not the first time that the MWSS is being criticized for fat bonuses.

In an August 2012 interview, MWSS Chairman Ramon Alikpala told Rappler that during the past administration, all MWSS employees enjoyed as much as 32 months of bonuses, which were tax-free.

These bonuses, Alikpala said, had gone on for many years despite the repeated call of the Commission on Audit (COA) to remove them.

It was also revealed that MWSS drivers used to take home up to P97,000 a month.

‘Transformation’

Alikpala has since instituted reforms in the MWSS, slashing drivers’ salaries to P38,000 a month and ridding the agency of fat pay in compliance with the salary standardization law.

So when employees heard that the bonuses of some MWSS executives reached up to half a million pesos for 2012, they questioned the legality of the perks.

Alikpala is one of the recipients of the bonus; he is eligible to accept P388,800 worth of bonus. Three others are also set to receive similar amounts, with the highest getting P504,900.

Malacañang defended MWSS and its bonus for the 4, worth up to P1.7 million.

“This [amount] is in marked departure from 2009 when 9 MWSS board members received bonuses averaging about 2.5 million pesos, despite a 34-million net loss incurred by the agency,” the statement said.

“The transformation that has taken place in MWSS is a testament to the gains that can be achieved along the straight and righteous path.” – Rappler.com