GCG marks third year as overseer of GOCC sector

From the Governance Commission for Government Owned or Controlled Corporations

The Governance Commission for GOCCs (GCG) marked its third anniversary celebrations today as the central advisory body that monitors and oversees government owned or controlled corporations (GOCCs).

Created in June 2011 by virtue of Republic Act 10149, or the GOCC Governance Act of 2011, the GCG was born in the swirl of irregularities and charges of corruption that bedeviled the GOCC sector in the past.

Foremost among these were issues of unregulated bonuses and salaries granted by GOCC boards to their executives and directors as well as charges of graft and corruption in other GOCCs.

Highlighting today’s simple anniversary rites at the GCG headquarters at the Citibank building in Makati was its conferment of the “Silver Trailblazer Award” from the Institute of Solidarity in Asia (ISA) for accomplishing its Performance Governance System (PGS) Compliance Stage. The PGS translates the organization’s vision into specific and quantifiable strategies and commitments.

Senate President Franklin M. Drilon, one of the principal authors of R.A. No. 10149, graced the third anniversary celebration as guest speaker. In his speech, Sen. Drilon congratulated GCG for its milestones and achievements it has accomplished in such a short span of time.

Among these were the regulatory and policy milestones which the GCG has instituted in the hitherto unregulated GOCC sector. These included the coming out of a Fit and Proper Rule for GOCC directors and officers, the institution of the Code of Corporate Governance, Ownership and Operations Manual for the entire GOCC sector, the initiation of performance scorecards and various good governance conditions for its directors and officers.

Also this year the GCGs recommended the abolition of 23 non-performing GOCCs. Out of the 23, 11 GOCCs have already been approved by President Benigno Aquino III for closure.

Abolition, reorganization, mergers, and privatization of GOCCs form part of the GCG mandate of evaluating the performance of GOCCs and in determining their socio-economic relevance relative to the country’s development goals.

Also with the cooperation of the Securities and Exchange Commission (SEC), the GCG recently initiated the dissolution of 14 Non-chartered GOCCs by way of the expiration of their corporate terms.

The GCG was able to successfully bid out its Integrated Corporate Reporting System (ICRS) which will become the central repository of all financial and non-financial information on the GOCC Sector. GCG also completed its compensation study for the development of the Compensation and Position Classification System (CPCS) which shall ensure the just and equitable wages of all GOCC personnel. Upon approval of the President and the implementation of CPCS, the Salary Standardization Law will no longer be applicable to GOCCs’ Directors, Officers, and employees.

In time for its anniversary, GCG also launched its new official website which can be accessed through www.gcg.gov.ph. The new website contains the most recent news about GCG and updates on various information on GOCCs under GCG’s jurisdiction.

The GCG is headed by Chairman Cesar L. Villanueva, Commissioners Ma. Angela E. Ignacio and Rainier B. Butalid. Its two ex officio members are Finance Secretary Cesar V. Purisima, and Budget Secretary Florencio Abad.

Civil Service Commission (CSC) Chairman Francisco T. Duque III, Securities and Exchange Commission (SEC) Commissioner Ephyro Luis B. Amatong, Government Corporate Counsel Justice Raoul C. Creencia, Deputy Ombudsman Gerard A. Mosqueda, and Usec. Reynaldo P. Cruz also graced the celebration.

GCG’s partners in the transformation of the Government Corporate Sector such as the Insitute of Corporate Directors (ICD) President and CEO Ricardo Nicanor Jacinto and the Institute for Solidarity in Asia (ISA) Chairman Jesus P. Estanislao, were also present at the event. The Philippine chapter of international anti-corruption watchdog, Transparency International, represented by Chairperson Dolores Espahol was also in attendance.

GCG will also spearhead the GOCC Dividends and Recognition Day on June 9, 2014 at the Malacanang Palace which will be graced by President Benigno Aquino III. The event will be highlighted by the remittance of 47 GOCCs remitting close to P33 billion in dividends. By 2013, the GOCC Sector covered by R.A. No. 10149 had a total aggregate asset of P 5.7 trillion and a consolidated net income of P 131 billion.