DUTY FREE EXECS WARNED THEY’LL LOSE 2018 BONUSES

The Governance Commission for Government Owned or Controlled Corporations (GCG) ordered board members of the state-run Duty Free Philippines Corp. (DFPC) to explain anomalies in the state firm or lose their performance bonuses this year.

TheGCGmade the warning after audit findings of anomalies involving resigned Tourism Secretary Wanda Tulfo-Teo, and the apparent misuse of the profit share of the Department of Tourism.

“The GCG has sought the explanation of Duty Free Philippines on the fiscal year 2017 findings of the Commission on Audit (COA),” the agency said, amid complaints from DFPC employees of new service and delivery contracts that they described as anomalous.

The GCG, the body overseeing state-run firms, said the DFPC directors were also directed to explain the audit findings under the GCG performance evaluation system (PES).

Warning

The PES requires all government owned and/or controlled corporations (GOCCs) “to present concrete and time-bound action plans for addressing all COAfindings,” the GCGnoted.

“Failure to properly address such findings will render Duty Free Philippines’ board ineligible from receiving the 2017 performance incentives even if [the agency] achieves its 2017 performance targets,” the GCGsaid.

The GCG said Republic Act No. 10149, or the GOCC Governance Act of 2011, provided that all directors, trustees and officers of a state firm were “fiduciaries of the state” who should “always act in the best interest of the GOCC.”

The GCG made the warning after the COA found that some P2.52 million worth of duty-free goods were ordered withdrawn by Teo and Tourism Undersecretary for Administration and Special Concerns Rolando Cañizal last year.

Luxury goods

The goods included P2.17 million worth of luxury items and appliances, and 277 items worth an additional P346,446.80, which were released from DFPC under questionable circumstances.

There were also complaints that the DFPC board was planning a massive reorganization plan, affecting more than 400 employees, to justify the employment of contractors, according to DFPC insiders.

The GCG said that it “exercises its oversight functions on GOCCs’ operations primarily through performance monitoring and evaluation.”

“While the GCG recognizes the limitations in its mandate, it continues to exercise its power,” it added.