THE PUBLIC has been agog over the last few weeks over accounts of the extremely generous compensation that the heads or members of the boards of directors of government-owned or controlled corporations and agencies have been enjoying. What raises the hackles of the casual observer is that many of these salaries and perks are being enjoyed in defiance of government rules and regulations and that the same officials and appointees in fact granted these privileges to themselves, flying in the face not just of well-meaning laws but also of ethics and a sense of decency.

But in our eagerness to ferret out illegal and immoral privileges enjoyed by officials of the previous administration, it seems we need to take care not to tar with the same brush both those who actively sought to enrich themselves, and those who followed clear and lawful regulations and were transparent in their dealings.

One of the government officials singled out in recent Senate hearings on the compensation enjoyed by officers of GOCCs and financial institutions is former SSS chairman retired Lt. Gen. and Ambassador Thelmo Cunanan.

Cunanan, according to revelations of Sen. Franklin Drilon, was one of four SSS executives who ?pocketed? some P127 million over a few years, the bulk of which was in the form of stock options in Philex Mining Corp., where they represented the SSS. Since they were seating on the Philex board as representatives of the pension fund, Drilon asserted that the executives should have ?returned? their earnings from the stock options to the SSS.

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BUT in a statement, Cunanan explained that he availed himself of the stock option offered by Philex to all 12 board members over a four-year period and that he paid for a total of 4.5 million shares with his own money.

Using a loan from HSBC, Cunanan bought shares at ?market prices varying from P1.09 per stock up to P3.08 per,? paying a total of P9.25 million for the shares. He did not use a single centavo from SSS funds.

Of these shares, Cunanan added, he sold through his stockbroker 1.2 million shares in several transactions: 365,000 shares in 2007 and 895,700 shares in December 2009. ?The selling prices in 2007 varied from P8.3 to P10.75, and from P15.50 to P15.75 per share in 2009. Total value of these sale transactions was about P17.6 million,? the former SSS chair said. Subtracting the cost of buying these 1.2 million shares, which is about P2.3 million, Cunanan ended up with P15.3 million in earnings?not P66.6 million as alleged by Drilon.

Two ?erroneous assumptions? might have confused the Senate committee, Cunanan said. One is that the stocks were given free to the SSS executives as part of their ?bonus?; and the other, that Cunanan sold his 4.5 million shares and turned around and immediately sold them at the prevailing market prices of P19.50 per share then. ?This was not the case in both instances,? the former SSS chair asserted.

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AS FOR the issue raised that Cunanan should have offered the exercise of the stock option to the SSS for it to acquire, he offers this explanation: ?Art. 8 of the Philex Corp. Stock Option Plan states that ?no rights may be transferred, sold, exchanged, pledged, disposed of or otherwise hypothecated or encumbered by a Participant or any beneficiary thereof?? If (I) did not avail of them ? the SSS couldn?t have either because of this provision.?

Over the years, added Cunanan, the SSS has installed ?adequate reforms to protect the interest of its 26 million members, and the situation cannot arise where it pays for stock subscriptions only for its executives to bring them home.? Philex Mining, on the other hand, is a publicly listed firm with transparent transactions registered with both the SEC and the Philippine Stock Exchange.

Cunanan also raised the point that ?after 49 continuous and unblemished public service in both the military (during which he risked his life several times) and civilian sector? he was not about to ?destroy his reputation with stock option shenanigans.?

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THIS last may strike some as a self-serving statement, but in the case of Thelmo Cunanan, there are testimonials galore to his integrity and record of public service.

One of these is from Fred Parungao who enjoys an enviable reputation in the business community and worked with Cunanan for 10 years, first as executive vice president and COO of the Philippine National Oil Co. (PNOC) while Cunanan was president, and then as Cunanan?s chief of staff at the SSS.

?In all the years I have worked with him, I can say with utmost certainty that he has always adhered to the highest ethical standards and practices and in no instance has he taken advantage of anyone,? said Parungao. ?He is a true professional and a distinct credit to his country as one of the most honest public servants. The unjust and unfair attacks on his professional integrity are totally uncalled for.?

Their working in close proximity for a decade may have colored Parungao?s perception, but at a recent dinner I attended with two Aquino Cabinet members in attendance, the subject of the charges levied against Cunanan came up. One of the secretaries, who had apparently worked with the former general and ambassador in PNOC, vouched for Cunanan?s honesty and integrity. ?I worked closely with him and saw no need to doubt his sincerity in public service,? said the Cabinet official.

Indeed, it?s unfortunate that at the close of decades of public service and just when he?s in the thick of a battle against cancer, Cunanan should have to be subjected to these allegations. Perhaps his explanations will be enough to clear his name and reputation, once and for all.