Freed Of Corruption, Firm Soars

February 17, 2013, 7:00pmBy Kris Bayos

MANILA, Philippines --- A sequestered corporation under the supervision of the Presidential Commission on Good Government (PCGG) has posted a whopping 213 percent increase in income for 2012 after reforms were instituted and corruption curbed.

Based on its unaudited financial statement for 2012, the Bataan Shipyard and Engineering Corporation (BASECO) earned P54 million last year. PCGG said BASECO – marred with excessive directors’ fees and employees’ compensation under the previous administration – earned P17 million in 2011 and posted a steady increase in revenue from P51 million in 2011 to P70 million in 2012.

PCGG Chairman Andres Bautista said the growth is attributed to the reforms instituted by the current management when it took over the corporation in July 2011.

“The new management immediately implemented institutional reforms such as reduction of excessive directors’ fees and employees’ compensation, including rationalization of its manpower, suspension of onerous contracts, investigation of questionable transactions, and adoption of internal control measures. It also ordered the bidding of the lease of its properties to obtain competitive rents,” he said.

Bautista said the new management of BASECO has requested the Commission on Audit (COA) to conduct a fraud audit on the transactions entered into by the previous management to confirm its initial findings of irregularities.

“Appropriate steps, including the sending of demand letters (to previous directors and employees), have been undertaken for the accounting, liquidation and recovery of excessive allowances, bonuses and other irregular disbursements,” he said.

The official added that “appropriate complaints against erring officials are being prepared” against previous directors and employees of BASECO who would not heed the PCGG’s demand for liquidation and return of excessive fees and compensation.

Bautista added that BASECO likewise opened an escrow account with the Bureau of Treasury for the first time after it remitted P15 million to the National Treasury in 2011 and P17 million in 2012.

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