The Philippine Online Chronicles

Four Social Security System (SSS) officials are facing the heat for having amassed a total of P127 million in the exercise of stock options, per diem, and allowances as board members of a mining corporation from 2007 to 2010.

Outgoing SSS chairman Thelmo Cunanan received from Philex Mining Corp. a total of P83.1 million, while former SSS head Romulo Neri received P17.2 million, former SSS chief Corazon dela Paz-Bernardo P20.7 million, and SSS commissioner Sergio Ortiz-Luis, Jr. got P6.3 million.

"It is very obvious that there was abuse on the part of the commissioners of the SSS when they took it upon themselves to be entitled to these gargantuan sums," noted head of the Senate finance committee Senator Franklin Drilon, during the hearing held Tuesday.

“And this is just one company,” he added. SSS also owns substantial shares in Union Bank, Energy Development Corp., Globe Telecom Inc., and Ayala Corp, with the pension group’s officials sitting on the board of these companies.

“The possible criminal liability would arise from the failure of Mr. Cunanan et al to exercise the extraordinary diligence required of a manager of a trust fund, which is the SSS pension fund,” said Drilon. “These funds do not belong to the government. These belong to the workers.”

"In other words, if you received compensation beyond what is authorized and you failed to turn this over to the agency where you belong, there can be some criminal liability," he added.

Neri however, insisted that their amassing of that amount was not illegal.

“They are declared as personal income of the commissioners,” Neri told senators.

He added that SSS is not covered by Republic Act 7656, which states that government-owned and –controlled corporations (GOCCs) must remit 50 percent of their dividends to the national government. This is because unlike other GOCCs, SSS gets its funds from employers’ and workers’ contributions.

“It’s all legal. I have consulted a lot of lawyers,” Neri said.

Drilon however, pointed out that the by-laws of Philex stipulates that its directors may claim as bonus 1 and ½ percent of its profit—but not if a director is from the government. He added that because these earnings were made through the investments of SSS, the money must be turned over to the pension fund and not kept as "personal income."

“Are you not there for public service?” he asked reporters, addressing the four SSS officials. “Are you not there to protect SSS funds?”