The management of the Clark Development Corporation (CDC) takes notice of the articles published today by several news organizations.
The articles are presumably based on the audit observations posted on the website of the Commission on Audit (COA). The articles cited figures and recommendations contained in the audit reports.
CDC, like all other GOCCs and government agencies, abides by and is guided by the observations of COA. We will comply with EO No. 24 series of 2011. Executive Order 24 sets the guidelines on the compensation of directors of government corporations.
CDC President and CEO PBGen Manuel R. Gaerlan (Ret.), who assumed his office on January 14, 2021, directed management to review CDC’s policies pertaining to the use of vehicles and staff houses by individuals and government offices, including the COA auditor who enjoys the same privilege. The review started since the audit observations were received earlier this year. Several communications have already been exchanged between CDC and COA towards the resolution of this concern. The news reports actually came out after the audit observations were discussed as a special agenda in the board meeting held on April 8, 2021.
On the use of vehicles and staff houses
The BODs are provided transient houses and vehicles since on top of BOD meetings, they attend other meetings and official functions in Clark. The BOD’s functions are not limited to attending meetings as they have to know what is going on and what is happening on the ground. Their presence in Clark is needed from time to time on top of meetings, committee work and other functions.
It is more cost effective for the directors to use the transient houses rather than stay in hotels or other accommodations. The abnormal times also call for actions that may deviate from set policies but ensure the efficiency and welfare of our officials. The directors attend face-to-face meetings until recently, they need to travel in safety and to have a place to stay when in Clark.
We also need to clarify the aggregated amount of P1.23 million spent for utilities. The reckoning periods of the individual house utility expenses vary from three months to 41 months. The total does not represent a uniform assessment of expenses. When extrapolated to monthly averages, the utility expenses for the ten houses in the COA report range from Php 758 to Php20k a month, with an average of Php 5,503 per month.
The management has already ordered the recall of the vehicles which will be pooled for the use of the entire organization. In an executive session, a majority of the board members signified the willingness to lease the houses themselves so they can continue to have a safe place to stay when in Clark.
The Clark Bike Culture
The promotion of a bike culture is among the activities that the BOD volunteered to be involved in. For official purposes but performed during their personal time, the directors support the “Clark Healthy Lifestyle” and “Clark Bike Days”.
The Clark main zone is 80-85 percent bike ready. There are also mountain bike trails popular to local tourists around the natural surroundings of Clark. The directors do not receive any compensation for their bike days but they embraced the concept.
The Public Safety Division received the other bicycles and they use these to patrol areas where people have the tendency to congregate. The use of bicycles results in many beneficial effects to the zone’s environment.
President Gaerlan, Director Jon Castro and other officials take regular inspection rides to check on untidy and unkempt areas, assess public risks, monitor progress of infrastructure development and keep a sense of order in Clark. Pristine and critical areas not accessible to motor vehicles are now also accessed using bicycles.
CDC management appealed for the reconsideration of the COA observation.
Reimbursable RATA
The COA flagged an overpayment of the reimbursable representation and travel allowance of two members of the board. Management has issued an order to deduct the overpayment from the succeeding reimbursements of the two directors.
CDC Performance
President Gaerlan said in his statement that “[T]he role of the board members is not limited to attending meetings alone nor their performance is measured by the number of meetings held in a year.”
It is also noteworthy to mention that in the same audit report, COA commended all CDC officials (past and present leadership) and employees for their quick and proactive response to mitigate the effects of the Covid-19 outbreak in the CFZ and nearby provinces.
COA observed “CDC played a very significant role in the provision of temporary quarantine facilities, personal protective equipment, supplies, in-kind assistance and free transportation services all geared towards the mitigation of the effects of the Covid-19 in CFZ, including the NCC.”
And aside from what CDC did in addressing the pandemic, it also registered a financial performance that exceeded the figures of the first 22 years in just five years.
